One Big Beautiful Bill Tax Breakdown Part 1

What is it?

The One Big Beautiful Bill was President Donald Trump's promise to voters during his campaign trail, promising changes to many parts of the government and tax implications for businesses and individuals. Giving relief for those who receive tips and work overtime, which is great for individuals who will now have more disposable income. Changed many existing tax credits, such as the Child Tax Credit (CTC), State and Local Tax (SALT) deductions, and Charitable donations deductions. There are also promises of accounts for children born between January 1, 2025 through December 31, 2028. With the government providing the first $1000 to the account to get it started, further incentivizing the birth of new children. Trump’s bill covered many of the promises in the campaign trail and made permanent many of the tax changes he implemented in his first presidential term with the Tax Cuts and Jobs Act (TCJA) in 2017. 

How does this affect you?

These changes affect both sides of the aisle in the business world. For employers the changes to taxes on overtime and tips change how their payroll can look, while for the employees this changes their take home income and further disposable income. This affects how everyone in the US will do taxes at the end of the tax year and will require a more complex approach to these new/renewed credits. Many of which could affect your tax liability, take home income and your tax returns for the 2025 tax year.

Why is this important?

New taxes, new credits and new changes means your taxes are now more complex and will require more insight. The changes to the CTC and implementation of government started accounts for children will change how your children grow up and interact with their future. While the new tax credits and removal of taxes on tips and overtime will allow for more disposable income for day to day life, these on top of the a new deduction for car loans for cars produced in the US allows even more income to be put towards other needs. These changes all bring new benefits to the individuals and business and will require change. Updates to payroll and tax filings will be needed and we are here to help.

How can we help you?

Reach out via our phone number, email or website to book a consultation with our talented staff to see how we can help you to better understand how this will affect you and to help you gain insights to your taxes and get them filed properly and securely.