One Big Beautiful Bill— What You Gain (and What You Avoided)
To Our Clients and Friends,
I’m excited to share the latest tax law updates straight from the new - One Big Beautiful Bill. I've closely monitored these developments over recent months, and now that it's official, here's a clear breakdown of how this will positively impact you, your family, and your business—plus an overview of what taxes might have looked like had Congress not acted.
Personal Tax Benefits for Your 2025 Return:
Full $2,000 Child Credit
Enjoy the full credit amount, refundable even if your tax liability is zero.
Expanded Earned Income Credit
Now available for taxpayers ages 19–24 and certain non-custodial parents.
Car-Loan Interest Deduction
Deduct interest of up to $10,000 annually on new car loans from 2025–2028.
No Tax on Tips & Overtime
Tips and overtime earnings, up to specific IRS limits, are now exempt from taxation.
Social Security Benefit Exclusion
Exclude up to 50% of Social Security benefits from taxable income.
Home Clean-Energy Credit
Receive a 30% credit for qualified investments in solar panels, heat pumps, insulation, and more.
Coming in 2026 and Beyond:
More Affordable Health Insurance
Out-of-pocket spending caps will gradually decrease over three years.
First-Time Homebuyer Credit
Receive a credit of up to $5,000 for homes purchased starting in 2027.
Business Tax Advantages for 2025:
100% Bonus Depreciation
Businesses can fully expense new equipment for an additional year.
Increased Section 179 Limit
Immediate deduction limit increases to $1.5 million in the first year.
Made-in-USA Credit
Gain an extra 6% tax credit on domestic production costs.
Enhanced Employer Child-Care Credit
Credit increases to 40% (50% for small businesses), capped at $500,000.
Clean-Energy Business Credits
Extended tax credits available for investments in solar, wind, and other renewable energy projects.
Tax Increases You’ve Avoided:
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Income tax rates rising by 10 percentage points.
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Child credit reduced to $1,000 and becoming non-refundable.
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Standard deduction being cut in half.
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Corporate tax rate reverting to 35%.
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Expiration of valuable equipment write-offs.
Next Steps:
These tax updates represent significant opportunities to optimize your financial strategies. To discuss the specific impact on your tax situation, please contact our office to schedule a consultation.
Call us at (908) 272-4452 or Schedule Online Here.
Consultation fees apply (waived for monthly retainer clients).