Broward Office
Pearl Building
10191 West Sample Rd Suite 215
Coral Springs, FL 33065
Main (954) 625-5926 / (754)281-1735
Fax (561)320-0312
Email: jotaeleservices@gmail.com
Miami Office
Regus Building
7752 NW 72nd Ave Suite 113
Miami, FL 33166
One Big Beautiful Bill Act,
Law of the Beautiful and Enormous Legislative Measure
The One Big Beautiful Bill Act (OBBBA), also known as the Big Beautiful Bill, is a U.S. federal law passed by the 119th United States Congress containing tax and spending policies that form the core of Donald Trump's second presidential agenda. The law was signed into law by Donald Trump on July 4, 2025. This Act drastically changes taxes and is packed with updates that could generate more revenue. Whether you're a parent, a rideshare driver, a small business owner, or simply want to make the most of every dollar, these changes are significant. We've explained the OBBBA's tax updates in plain language so you can see exactly how they benefit real people like you.
For all other changes, you can download our information document at the link.
Tax Rates
The Tax Cuts and Jobs Act created seven new income tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. These tax rates were originally scheduled to expire at the end of 2025. Previously, the rates were 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. All seven tax rates under the Tax Cuts and Jobs Act (TCJA) have been made permanent, with additional inflation adjustments for certain categories.
Standard Reduction - Continue
The largest standard deductions have been made permanent and will continue to be adjusted for inflation.
The 2025 amounts have been increased compared to the previously announced amounts.
•Single - $15,750
•Head of household - $23,625
•Married couple filing together - $31,500
Taxpayers over 65
- Continue -
In 2025, this is $2,000 for single individuals or heads of household and $1,600 for married couples filing jointly, or $3,200 if both are age 65. From 2025 through 2028, taxpayers age 65 and older can claim a new
The $6,000 deduction was included to help offset taxes on Social Security benefits, but it is not tied to Social Security. The new $6,000 deduction for seniors is a below-the-line deduction and can be taken even if they itemize their deductions. It has been called an "exemption," but it is a deduction. The deduction begins to be eliminated for taxpayers with a Modified Adjusted Gross Income (MAGI) at a rate of 6% of MAGI above the threshold.
$75,000 for singles
$150,000 for married couples applying together
Tips
For 2025-2028 - Tips will continue to be reported on Form W-2
Tips will be subject to federal income tax, FICA, and Medicare tax withholding in the same manner as before.
For 2025–2028, tips of up to $25,000 per person can be deducted as a below-the-line deduction. Tip income will continue to be considered earned income. The tip deduction will begin to be phased out for taxpayers with a Modified Adjusted Gross Income (MAGI) above:
$150,000 for singles
$300,000 for married couples filing together
Overtime
For 2025–2028, up to $12,500 per person (maximum of $25,000 on an MFJ return) can be taken as a below-the-line deduction. This will still be considered earned income. Overtime will be identified separately on W-2s. The overtime deduction will also begin to be phased out for taxpayers with a Modified Adjusted Gross Income (MAGI) above:
$150,000 For singles
$300,000 For married couples filing together
Car Loans
For 2025–2028, you can deduct up to $10,000 in interest paid on qualifying auto loans as a below-the-line deduction. To be eligible, the auto loan interest deduction must be for a new auto loan taken out after December 31, 2024. The interest deduction only applies to loans for new cars that had final assembly in the U.S. The auto loan interest deduction begins to be eliminated for taxpayers with Modified Adjusted Gross Income (MAGI) above:
$100,000 for singles
$200,000 for married couples filing together
Charitable Donations
Under the TCJA, charitable donations were only deductible if you itemized your deductions on Schedule A.
If you took the standard deduction, you couldn't deduct charitable donations, except in the COVID relief years from 2020 to 2022. Starting in 2026, taxpayers will be able to deduct the following amounts below the line, adjusted for inflation:
$1,000 For singles
$2,000 For married couples filing together
Qualified business income deduction
Makes the Qualified Business Income Deduction permanent under Section 199A, with no change to the current deduction percentage of 20%.
Beginning in 2026, the threshold for Specialty Service Businesses has been expanded from $50,000 to $75,000 for single taxpayers and from $100,000 to $150,000 for couples filing jointly.
Starting in 2026, taxpayers will receive a minimum deduction of $400 if they materially participate in businesses that have at least $1,000 in revenue.
Both amounts will increase in increments of $5 according to changes in the C-CPI-U.
Electric Vehicle Loans
The Inflation Reduction Act (IRA) created the following credits for electric vehicles:
• Clean Vehicle Credit – $7,500
•Used Vehicle Credit – $4,000
• Commercial Vehicle Loan – 15% of the cost
The original maturity date for these loans under the Inflation Reduction Act was 2032.
However, each of these loans now expired on September 30, 2025.
Download the complete One Big Beautiful Bill Act file here