The Big Beautiful Bill: What It Means for You and Your Business
The new “Big Beautiful Bill” (OBBBA), signed by President Trump on July 4, 2025, brings some of the most sweeping changes to the tax code in years.
As your trusted accounting partner, Dynamic Tax & Accounting is here to break down the key points, so you know exactly how these changes can help—or hurt—you, whether you’re an individual, a business owner, or both.
What’s in the Bill for Individuals?
Ways It Can Help You
Bigger Standard Deduction The standard deduction stays at the higher level set by the 2017 Tax Cuts and Jobs Act (TCJA)—and it’s now permanent. This means more income is protected from taxes right off the top, making tax time easier for many families.
Wider, Lower Tax Brackets Lower tax rates for most people have been made permanent, so you could keep more of your hard-earned money each year.
SALT Deduction Up to $40,000 If you pay a lot in state and local taxes (SALT), you can now deduct up to $40,000 per year (previously only $10,000)—great news for New Yorkers and others in high-tax states.
Extra Deductions for Tips, Overtime, and Car Loans Workers can deduct up to $25,000 for tips and overtime, and up to $10,000 in car loan interest (these expire after 2028).
Expanded Child Tax Credit Families get an extra $200 per child, with annual adjustments for inflation.
Senior Deduction If you’re over 65, you may now claim up to $6,000 extra to help cover taxes on your Social Security benefits.
“Trump Accounts” for Newborns If your child is born between 2025 and 2028, the government will deposit $1,000 into a new tax-deferred account—with more allowed each year.
What to Watch Out For
Some Benefits Expire After 2028 Several new deductions (like for tips, overtime, and auto loans) will sunset unless Congress extends them.
Tighter Medicaid and SNAP Requirements The bill raises work requirements and lowers automatic eligibility for Medicaid and SNAP (food stamps), which may increase costs for lower-income families.
Future Deficit Pressure Many of these tax cuts and new benefits are not paid for, which means the national debt is rising—potentially putting pressure on future tax rates or government services.
What’s in the Bill for Businesses?
Permanent 100% Bonus Depreciation You can deduct the full cost of new equipment or major investments immediately, rather than spreading it over many years—now through at least 2032.
Expanded Section 179 Expensing Small businesses can write off up to $2.5 million per year in equipment and qualifying property.
Pass-Through Deduction Stays LLCs, S-corps, and other pass-throughs can keep deducting up to 20% of qualified business income, permanently.
Bigger Breaks for Startup Investors The exclusion on capital gains for some startup investments has been raised, making it more attractive to invest in new businesses.
What to Watch Out For
Clean Energy Credits Eliminated If your business was relying on credits for renewable energy or electric vehicles, those have been repealed.
Sunsetting Provisions Some of the biggest business benefits still expire after a few years unless Congress acts to renew them.
Social Program Cuts May Hit Local Economies If your business serves Medicaid or SNAP recipients, the new requirements and funding cuts could reduce your customer base or workforce.
What Should You Do Now?
Review Your Tax Plan Many of these changes offer opportunities—but also risks. Make sure your tax plan takes full advantage of new deductions and prepares for future changes.
Don’t Wait Until 2028 Several benefits disappear after 2028. Now is the time to make big investments or claim special deductions.
Stay Flexible With many changes set to expire and the deficit rising, Congress could make further adjustments in the coming years. A flexible strategy is your best defense.
Ask Us for Help! At Dynamic Tax & Accounting, we’re here to answer your questions, review your personal or business situation, and help you make the most of the new law.
Have questions? Want a personalized tax review? Contact Dynamic Tax & Accounting today! Let’s plan for your best financial future under the Big Beautiful Bill.
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