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Unpacking the 'One Big Beautiful Bill Act': What It Means for You and Your Business

As the Tax Cuts and Jobs Act (TCJA) nears its sunset, taxpayers across America stand at a crucial pivot point. The inception of the 'One Big Beautiful Bill Act' (OBBBA) promises to extend and refine many TCJA provisions, addressing contemporary economic demands. By enhancing individual tax rates and business deductions, OBBBA seeks to pave a path toward economic resilience while preserving tax relief for a wide spectrum of taxpayers.

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Signed into law on the emblematic date of July 4th, OBBBA ushers in a plethora of tax adjustments effective from the current year through 2025 and beyond. Our focus here zeros in on its impact on individual taxpayers, small businesses, and family-focused tax benefits, excluding provisions targeted solely at large corporations.

This blog provides a comprehensive analysis to assist individual taxpayers and small business owners in the Maitland and surrounding areas, equipping them with actionable insights for savvy tax planning. Here's a detailed look at key provisions designed to enhance financial strategies:

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Individual Tax Rates: By extending reduced tax rates beyond January 1, 2026, OBBBA continues to alleviate tax burdens for middle-income earners. Inflation-adjusted tax brackets will take effect for years post-2025, maintaining incentives for wealth retention.

Standard Deductions: Long-term increases in standard deductions are enacted under OBBBA, considerably elevating the 2025 deductions with inflation adjustments to follow.

Senior Tax Deduction: New provisions introduce a $6,000 deduction for seniors, phasing out at higher income levels, effective until 2029. This supports financial ease for older citizens, reflecting a shift from past promises on Social Security taxes.

Child Tax Credit: Beginning in 2025, families benefit from a $2,200 credit per child, indexed for inflation thereafter. The act tightens eligibility through Social Security requirements, with phase-outs for higher MAGI households, positioning family support at its core.

Qualified Business Income (QBI) Deduction: Enhanced QBI limits afford small enterprises more robust baseline deductions, boosting businesses with active income engagement.

Estate and Gift Tax Exemption: With a hike to $15 million in 2026 for singles, this measure fortifies generational wealth transfer mechanisms.

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Car Loan Interest: Temporary deductions are available for passenger vehicles, strategically aiding households that depend on transportation.

In our role as trusted tax advisors in Maitland and the greater Orlando area, we stand ready to help you decode these changes. Our firm specializes in bespoke strategies that adapt to today's tax challenges. For personalized guidance or to schedule a consultation, reach out to our office—your ally in navigating the evolving fiscal landscape confidently.

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