You may have heard headlines calling it the “Big Beautiful Bill.” In tax language, it’s commonly referred to as the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025. Kiplinger
Below is a practical, client-friendly breakdown of what matters most: what’s immediate, what has near-term deadlines, and what’s more “futuristic” (2026 and beyond)—plus what you should do now to avoid surprises.
What’s immediate (affects your 2025 taxes you’ll file in 2026)
1) Tips and overtime: new deductions (not a “free-for-all”)
For 2025 through 2028, the law introduces deductions tied to how tips and overtime are reported:
- Overtime deduction: up to $12,500 (or $25,000 for married filing jointly), with income phase-outs and reporting rules. IRS
- The IRS has emphasized these are qualified amounts and must be supported by W-2/1099/approved reporting. IRS+1
What you should do: If you earn tips and/or overtime, make sure your year-end forms and payroll reporting are clean. If anything looks off, address it early—don’t wait until filing week.
2) Senior “bonus” deduction (65+)
Starting in tax year 2025, many taxpayers age 65+ may qualify for an additional deduction (often described as a $6,000 “senior bonus” deduction, depending on filing status and eligibility rules). Kiplinger+1
What you should do: If you (or a spouse) are 65+, let us know up front so we can evaluate eligibility and make sure you’re capturing the correct deduction.
3) SALT cap increases (helps mainly if you itemize)
The SALT (state and local tax) deduction cap increases from $10,000 to $40,000 for a period beginning in 2025, subject to income-based limits/phase-down rules. Tax Foundation+1
What you should do: This could change whether you benefit more from standard deduction vs itemizing—especially for homeowners in higher-tax jurisdictions.
Time-sensitive items (deadlines that can matter in 2025)
Clean vehicle credits end sooner than many expected
If you were planning around EV/clean vehicle credits, there is a hard timing element. The IRS states the New Clean Vehicle Credit (Section 30D) is available only for vehicles acquired on or before Sept. 30, 2025. IRS+1
What you should do: If you’re considering an EV purchase and expecting the credit, confirm eligibility before you commit. Timing and documentation (including the contract and “placed in service” rules) can be decisive. IRS
What’s “futuristic” (starts in 2026 and beyond)
1) “Trump Accounts” begin mid-2026 (planning item for families)
The IRS has issued guidance indicating contributions cannot be made before July 4, 2026. IRS+1
What you should do: If you have children (or are expecting), this is a 2026 planning conversation, not something you need to act on immediately in 2025.
2) SALT cap changes aren’t permanent
Multiple summaries describe the SALT cap increase as temporary and note a reversion later (often discussed as returning to $10,000 in a future year). RBC Wealth Management+1
What you should do: Don’t assume the 2025 rules are the “new normal” for long-range planning decisions. Multi-year strategy still matters.
What Pivot Aide Tax customers should do now
Here’s the short checklist we recommend:
- Tell us if you earn tips or overtime so we can confirm reporting and eligibility for deductions. IRS
- If you’re 65+ (or your spouse is), flag it—the senior deduction could apply. Kiplinger
- If you bought (or plan to buy) a clean vehicle, confirm eligibility/timing early—don’t wait until filing. IRS
- Be open to itemizing vs standard—SALT changes may shift what’s best for you. Tax Foundation
- Use the portal to upload documents and messages in one place so we can move faster and reduce back-and-forth.
Closing note
Tax law changes create both opportunities and traps—especially when deductions depend on documentation and timing. If you’re a Pivot Aide Tax client, we’ll walk you through what applies to you and what doesn’t, based on your real situation.
General information only; not tax advice. Your results depend on your facts and filing profile.
Recent explainers on the “One Big Beautiful Bill” tax changes
Trump 2025 Tax Bill: What’s Changed and How It Affects Your Taxes
New $6,000 ‘Senior Bonus’ Deduction: What It Means for Taxpayers Age 65 and Over
2026 laws that could impact your wallet
