thoughts & notes

  IRS - One Big Beautiful Bill                           ACT

 WASHINGTON - Significantly affects federal taxes, credits, and deductions. It was signed into law on July 4, 2025, as Public Law 119-21, and    takes effect in 2025.

I Federal taxes, credits, and deductions for Individuals [a few listed below, visit us for your 2025 tax filing or as an IRS-provided e-filer]

     Tax Inflation Adjustments - Standard deduction increases

     Deductions for Seniors -  Effective 2025 through 2028, individuals age 65 and older may claim an additional $6,000 deduction.

     No Tax on Tips -  Effective 2025 through 2028, employees and self-employed individuals may deduct qualified tips they received in

      occupations the IRS identified as “customarily and regularly receiving tips” on or before December 31, 2024.

     No Tax on Overtime - Effective 2025 through 2028, individuals may deduct the portion of qualified overtime pay that exceeds their

     regular rate of pay (for example, the “half” portion of “time-and-a-half”).

  Federal taxes, credits, and deductions for Businesses [a few listed below, visit us for your 2025 tax filing or as an IRS-provided e-filer]   

       Passenger vehicle interest relief -   

• Applies to reporting requirements under the One, Big, Beautiful Bill for qualified passenger vehicle loans.

• Lenders and other payors should refer to Notice 2025-57 and other related guidance to determine how the 2025 reporting rules apply.     Employee Retention Credit Limitations - The One Big, Beautiful Bill Act limits credits and refunds for employee retention credits (ERC) claimed for the third and fourth quarters of 2021 that were filed after January 31, 2024.