The Big Beautiful Bill has brought a lot to the table for taxpayers. Although there are still negotiations taking place, there are still a lot of changes happening in the 2025 filing season and the 2026 year. The bill is projected that the average American worker, will see an average increase in take-home pay of up to $10,000 a year. Due to all the current and upcoming tax changes, be prepared, there could be a slight filing delay in the 2025 filing season.



Big Beautiful Bill Highlights:

1.)   S Corp, C Corp and Partnerships will no longer be able to take a standard mileage deduction without an accountable plan in place or taking actual expense on a depreciated vehicle.

2.)   Seniors 65 and older will receive an additional deduction of up to $6,000 for single filers and $12,000 for MFJ filers. Additional deduction will be based on taxable income. It is not a requirement to be drawing on social security to be eligible for the additional deduction. (see social security vs senior credit blog for additional information)

3.)   In 2026, Trump Accounts will be available for children ages 0-18. Newborns born from 2025-2028 will receive an additional $1000 contribution. These accounts will be eligible for pre-tax deduction through your wages. Taxpayers can make the election to participate when they file their tax return on IRS Form 4547.

4.)   For 2025 filing season, the filing limit for 1099’s has increased from $600 to $2500. As of Dec 2025, it is set to drop back down in 2026 to $600. This is set to be addressed during the 2026 congressional session.

5.)   Mortgage Insurance Premiums are back as a deduction starting in 2026.

6.)   Starting in 2026, gambling losses will be limited to 90%.

7.)   If you purchase a new vehicle in 2025 and the vehicle was made in the US, you may be eligible to deduct a portion of your interest. Go to vpic.nhtsa.dot.gov/decoder and enter your vehicle information to verify it qualifies for the interest deduction.

8.)   Overtime and tips can be deductible, if certain criteria are met.