The “Big Beautiful Bill”: What You Need to Know for Tax Season

You may have heard the nickname “The Big Beautiful Bill” circulating in the news, which refers to the One Big Beautiful Bill Act (OBBBA) (H.R. 1), signed into law in July 2025.

This comprehensive legislation is a major overhaul of the U.S. tax code, making significant, long-lasting changes that will affect nearly every taxpayer and business.

Here’s a quick look at some of the most impactful tax provisions from the OBBBA that you should be aware of:

Permanent Extension of Individual Tax Rates: The individual income tax rates originally enacted under the 2017 Tax Cuts and Jobs Act (TCJA) were made permanent. This includes the current seven tax brackets, with the top rate remaining at 37%.
The Standard Deduction: The higher standard deduction amounts introduced by the TCJA are now permanent, providing a substantial tax-free amount for most filers.
New Tax Deductions: The OBBBA introduced several new, albeit temporary (effective 2025-2028), deductions, including:
- A limited deduction for qualified overtime pay.
- A deduction for qualified tips received by employees in certain service occupations.
- An additional deduction for seniors (age 65 and older).
Changes to Child Tax Credits: The law permanently increases the nonrefundable portion of the Child Tax Credit to $2,200 per qualifying child (subject to inflation adjustments).
Business Tax Relief: Many business provisions of the TCJA were also made permanent, including:
- Permanent expensing for certain investment in short-lived assets.
- Restoring and increasing the deduction limits for Section 179 expensing.

What Does This Mean for You?

The OBBBA is complex, and its effects go far beyond individual income tax rates, touching on everything from international business tax to changes in various social programs.
As you plan for the current and upcoming tax years, it is critical to review these changes with a tax professional. Understanding how the OBBBA impacts your specific situation—whether through new deductions, credits, or changes to the base tax law—will be key to effective tax planning. Don’t wait until filing season to find out!

Disclaimer: This blog post provides general information and is not a substitute for personalized tax advice. Consult with a qualified tax professional regarding your individual circumstances.