Key Highlights of the One Big Beautiful Bill Act

• No Tax on Tips

  • Individuals who have received a W2 and/or 1099-NEC will be eligible for a deduction up to $25,000 for qualified tips received.

• No Tax on Overtime

  • Individuals who have received overtime compensation may deduct the portion that exceeds their regular pay.

  • Deduction is limited to $12,500 ($25,000 for joint filers).

• No Tax on Car Loan Interest

  • Individuals may deduct up to $10,000 on interest paid for a vehicle that has undergone final assembly in the United States.

• New Deduction for Seniors

  • Individuals who are 65 and older may now deduct an additional $6,000 on top of their additional standard deduction amount.

  • The deduction is $6,000 ($12,000 for a married couple).

• 100% Bonus Depreciation for Businesses

  • 100% bonus depreciation has been permanently reinstated for tangible property with a class life of 20 years or less.

  • This includes property purchased after January 19, 2025.

Link to Official Guidance: https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors

Disclaimer: The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Jeffrey Kurtz CPA LLC to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact Jeffrey Kurtz CPA LLC prior to taking any action based upon this information. Jeffrey Kurtz CPA LLC assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.