What the "One Big Beautiful Bill Act" Means for You
- ewisetaxsolutions
- Oct 1, 2025
- 2 min read
Updated: Jan 11
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, bringing some of the most significant shifts to the U.S. tax code since 2017. While the headlines focus on the name, the reality for taxpayers is a mix of permanent extensions and brand-new deductions.
At Ewise Tax Solutions LLC, we’ve analyzed the fine print to help you navigate these changes. Here is what you need to know for your 2025 and 2026 filings:
For the Global Citizen: The SALT Cap & Remittance Tax
The Big Change: The State and Local Tax (SALT) deduction cap—previously stuck at $10,000—has been raised to $40,000 through 2029 for those earning under $500,000.
Expat Watch: The law also introduces a 1% excise tax on certain remittance transfers (sending money abroad) starting in 2026, specifically when using cash or physical instruments. If you regularly send funds to support family or investments overseas, we need to review your transfer methods.
For the Service Professional: No Tax on Tips & Overtime
The Demystified Version: From 2025 through 2028, qualified workers can deduct up to $25,000 in tip income and up to $12,500 in overtime pay (the "premium" portion of time-and-a-half).
The Catch: These benefits phase out for individual earners making over $150,000. For our solopreneurs in service industries, this could be a massive win for your bottom line.
For the Small Business & Solopreneur: 100% Bonus Depreciation is Back
The Update: The OBBBA restored 100% bonus depreciation for qualified business assets (like equipment or machinery) placed in service after January 19, 2025.
Why it matters: Instead of spreading out the cost of a new laptop, vehicle, or specialized tool over several years, you can often write off the entire cost in Year 1, providing immediate cash flow relief.
For Seniors: An Extra $6,000 "Bonus" Deduction
The New Benefit: Starting in 2025, individuals age 65 and older can claim an additional $6,000 deduction ($12,000 for married couples) on top of the standard deduction.
Strategic Note: This deduction phases out at higher income levels (starting at $75,000 for singles), so timing your distributions from retirement accounts is now more critical than ever.
For Families: The "Trump Account" & Child Tax Credit
New Savings Vehicle: The law introduces "Trump Accounts," which are tax-advantaged savings accounts for children (similar to an IRA for minors).
Credit Boost: The Child Tax Credit has been permanently increased and adjusted for inflation, providing a more stable safety net for working families.
Navigating the Transition
The OBBBA is a complex "One Big Bill," but it doesn't have to be overwhelming. Whether you are wondering if your car loan interest is now deductible (it might be!) or how to report your foreign accounts under the new rules, I am here to provide the technical precision you deserve.
Contact Ewise Tax Solutions today to see how the OBBBA impacts your specific tax strategy.
