The One Big Beautiful Bill Act of 2025: What It Means for You

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The One Big Beautiful Bill Act of 2025 is ushering in a sweeping set of tax changes designed to simplify, expand, and—in many cases—permanently improve the way Americans manage their taxes. From small business breaks to family-friendly credits and bonus perks for hardworking folks, this legislation truly has something for everyone. As you plan for the coming year and beyond, here are some highlights to keep in mind.

100% Bonus Depreciation Returns

Real estate investors and business owners, take note: the beloved 100% bonus depreciation is back. This means you can fully write off the cost of qualifying assets—like machinery, equipment, or property improvements—in the first year. It’s a powerful incentive to invest, grow, and enjoy immediate tax savings.

QBI Deduction Made Permanent

If you own a small business, you’ve likely benefited from the Qualified Business Income (QBI) deduction, which allows eligible pass-through entities to deduct 20% of their qualified income. Originally set to expire, this deduction is now permanent for businesses in qualified industries—a reliable long-term break you can plan around.

Child Tax Credit Gets a Boost

Parents, rejoice! The Child Tax Credit is increasing from $2,000 to $2,200 per child. While it’s not a dramatic leap, every dollar matters when you’re managing growing family expenses.

Temporary SALT Deduction Cap Increase

If you itemize your deductions, there’s good news: the State and Local Tax (SALT) deduction cap is getting a temporary lift from $10,000 to $40,000. For those in high-tax states, this is a key year to itemize and maximize the benefit.

Temporary Tip & Overtime Income Deductions

Workers in industries that rely on tips or overtime are also seeing some relief. The new deductions include:

Up to $25,000 in tip income
Up to $12,500 in overtime pay
These deductions apply to individuals with income under $150,000 (or $300,000 for joint filers). They’re temporary—so act fast.

Charitable Giving Without Itemizing

Charitable donors, take heart: you no longer need to itemize to receive a tax benefit. You can now deduct:

$1,000 if filing single
$2,000 if married filing jointly
This is especially meaningful for those wanting to support recent flood victims in Kerrville, Texas, or any cause close to their hearts.

Paid Family & Medical Leave Credit Goes Permanent

Business owners offering paid family or medical leave can now count on ongoing support: the credit for providing this leave is now permanent, making it easier to care for your team without taking a big financial hit.

Tax Bracket Cuts Are Here to Stay

The reduced tax brackets introduced under the Tax Cuts and Jobs Act of 2017 were set to expire in 2025. This new law makes those lower rates permanent, providing stability for individuals and families alike.

Bigger and Better Standard Deduction

The standard deduction—nearly doubled under the TCJA—isn’t going anywhere. In fact, it will increase again in 2025 by:

$750 for single filers
$1,500 for joint filers
For those aged 65 and older, the boost is even more significant:
$7,600 extra for married joint filers
$8,000 extra for single filers
This is a big win for seniors relying on fixed incomes.

Brass Tax Moment: What This All Means for You

The One Big Beautiful Bill Act delivers a suite of tax changes that streamline deductions, enhance credits, and make several temporary provisions permanent. Whether you’re a business owner, parent, employee, or retiree, chances are you’ll benefit in some way.

But don’t forget—some provisions are temporary, and many depend on specific income levels or employment status. That’s where a seasoned tax professional can be your best ally.

So now that you’re in the know, it’s time to plan—and take full advantage of what’s ahead.

About the Author

Based in Rockwall, Texas, Karena Burgess brings over 18 years of financial experience, including 8 years on active military duty and 10 years with the Department of Defense. As an IRS Enrolled Agent (EA) and Certified Tax Resolution Specialist (CTRS), Karena specializes in solving complex tax issues and helping individuals stay on track with the IRS.