How the One Big Beautiful Bill Act (OBBB) will effect your 2025 Taxes
2025 Tax Prep Checklist: What to Know About the OBBB Tax Changes
The One Big Beautiful Bill Act (OBBB) introduced several tax updates that will affect the return you file in early 2026. Use this checklist to stay organized and make sure you’re taking advantage of every opportunity available under the new law.
✅ 1. Confirm Your 2025 Tax Bracket 1
- Review your projected income for 2025
- Note that the lower tax rates from prior years are now permanent
- Check whether your marginal rate has changed
✅ 2. Review Your Standard Deduction 1
For 2025, the standard deduction increases to:
- $15,750 — Single
- $23,625 — Head of Household
- $31,500 — Married Filing Jointly
If age 65+:
- Add $6,000 (single) or $12,000 (married, both spouses 65+)
✅ 3. Check Your SALT (State & Local Tax) Deductions 2
- SALT deduction cap increases from $10,000 → $40,000 for 2025–2029
- Helpful if you pay high property or state income taxes
- Gather property tax bills and state tax withholding documents
✅ 4. Gather Documentation for New Worker Deductions 1
The OBBB adds new above‑the‑line deductions (you can claim these even if you don’t itemize):
- Tip income (up to the new capped amount)
- Qualifying overtime pay
- Senior additional deduction (if applicable)
Collect:
- Pay stubs
- Employer statements
- Year‑end payroll summaries
✅ 5. Update Your Child Tax Credit Information 2
- Credit increases to $2,200 per qualifying child
- Ensure dependents are correctly listed
- Gather childcare, school, and dependent documentation
✅ 6. Prepare for Charitable Giving Rule Changes 2
(These apply starting in 2026 but may influence 2025 planning.)
- Non‑itemizers may deduct up to $1,000 (single) or $2,000 (married)
- Itemizers must exceed a 0.5% AGI floor
- 60% AGI limit for cash gifts is now permanent
Collect:
- Donation receipts
- Charity acknowledgment letters
✅ 7. Review Eligibility for New or Expanded Credits
You may qualify for:
- Working Families Tax Cuts / Trump Accounts
- Enhanced adoption credits
- Expanded HSA contribution opportunities
- Updated Premium Tax Credits
Gather:
- Health insurance statements
- Adoption‑related expenses
- HSA contribution records
✅ 8. Business Owners: Review Key OBBB Changes
If you own a business, check for:
- Updated rules for vehicle loan interest
- New reporting thresholds for third‑party payment networks
- ERC (Employee Retention Credit) limitations
- Qualified Production Property updates
Collect:
- Business expense logs
- 1099‑K forms
- Payroll records
- Vehicle financing documents
✅ 9. Consider Clean Energy & Investment Incentives
If you made or are planning upgrades:
- Clean vehicle credit changes
- Home energy credit expirations
- Clean fuel and carbon sequestration incentives
- Rural Opportunity Zone benefits
Collect:
- Contractor invoices
- Manufacturer certification statements
- Vehicle purchase agreements
✅ 10. Schedule a Tax Strategy Review
Because many OBBB provisions apply retroactively to 2025, a mid‑year or year‑end review can help you:
- Maximize deductions
- Reduce taxable income
- Plan for 2026 and beyond
- Align tax strategy with your broader financial plan
We’re Here to Help
If you’d like help reviewing your 2025 tax situation or want a personalized strategy session, our team is ready to guide you through every step of the new OBBB landscape.
References:
1 IRS — One Big Beautiful Bill: Individuals & Workers Provisions
https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions-individuals-and-workers
2 GuideStone — One Big Beautiful Bill Act: Key 2025 Tax Changes Explained
https://www.guidestone.org/Resources/Education/Articles/Investments/One-Big-Beautiful-Bill-Act