One Big Beautiful Bill Act (OBBBA) Enacted: What It Means for You in 2025 and Beyond

We’re pleased to announce that the One Big Beautiful Bill Act (OBBBA) has recently been enacted. This legislation streamlines the way certain federal payments are made, reducing complexity and enhancing transparency for individuals and businesses alike.

At Bass Accounting and Tax Services-CPA, LLC, we’re committed to staying ahead of moving parts in tax and regulatory policy — and we’re here to guide you through any implications this new law may have on your tax planning, cash flow, or compliance. If you’d like to explore how OBBBA might impact you or your business, please schedule your consultation with us.

What clients should know for the 2025 tax year

1. Standard deduction increases

   • For tax year 2025, married filing jointly standard deduction rises to $31,500, heads of households to $23,625, and single/married filing separately to $15,750. Internal Revenue Service+1

   • Encouragement: Clients who typically take the standard deduction may see slightly lower taxable income — good planning leverage.

2. Child Tax Credit boost

   • Starting 2025 the child tax credit increases to $2,200 per qualifying child under age 17 (indexed for inflation). TurboTax+1

   • Encouragement: Families should confirm eligibility (SSNs required) and consider implications for cash-flow and planning.

3. New deductions for tips, overtime, and auto loan interest

   • The OBBBA introduces new itemizable or non-itemizable deductions for:

     
     

     • Qualified tip income. TurboTax+1

     
     

     • Qualified overtime compensation. TurboTax

     
     

     • Interest on loans for new U.S.-assembled personal vehicles purchased in 2025 (subject to limits). Wikipedia

   • Encouragement: Service-industry clients and those working overtime may want to track these new deductions — a planning win.

4. Withholding notice – payroll remains unchanged for 2025

   • For tax year 2025, payroll forms (W-2, 1099, 941) and withholding tables are not being updated immediately to reflect all OBBBA changes. Employers should continue using existing withholding procedures and re-check early 2026. Internal Revenue Service

   • Encouragement: Business clients should coordinate with payroll providers now to monitor any under-withholding risk.

5. § 179 deduction (business property) changes

   • For taxable years beginning in 2025, maximum § 179 expensing is $2.5 million (with the phase-out beginning at $4 million). Internal Revenue Service

   • Encouragement: Business-owner clients should evaluate capital investments before year-end to maximize benefit.

Looking ahead: 2026 and beyond

• The IRS released inflation-adjusted thresholds for tax year 2026: e.g., top tax‐rate threshold for singles rises above $640,600 and married joint above $768,700. Internal Revenue Service+1

• The standard deduction for 2026 will be $16,100 (single) / $32,200 (married joint) / $24,150 (head of household). Internal Revenue Service+1

• Encouragement: Inform clients there’s forward planning value — especially high‐income households, those with large investments, or planning retirement transitions.