Ah, tax season. Nothing like the fear of going to prison to motivate getting your documents in order. While we are not an accounting office (and certainly don’t want to be…), we would be remiss if we didn’t consider the tax implications of the decisions we help you make.
Our goal is not for you to avoid taxes altogether – remember that thing about prison – but to help you navigate the most efficient and inexpensive way to pay them.
The One Big Beautiful Bill Act (OBBBA), passed in July of 2025, has some retroactive provisions that may benefit your current filing. While some changes – like the increased standard deduction and child tax credit – can be taken advantage of without extra documentation, others require a little data-gathering.
If you receive tips or overtime compensation – hooray! You may be able to deduct a portion of that pay from your taxable income. But because the legislation passed mid-year, many W-2’s won’t break out your OT hours for you. Be sure to check your paystubs for that information.
While the standard deduction increased, so did the State and Local Tax (SALT) deduction – and by a large margin. Consider whether you would benefit from itemizing on your 2025 return.
Some things to look forward to for 2026 are a new charitable deduction for non-itemizers and the increased estate and gift tax exemption, which has been made permanent.
For many Americans, this legislation will lead to a larger tax refund this year and in the future. Again – hooray! But remember that with every cash infusion comes an opportunity to revisit your core family values. Budgets tend to function like a gas – they expand to fit whatever container they’re in. Don’t make the container bigger unless it’s sustainable and serves what is most important to you.
OBBBA represents the most significant tax law change in years. And while many provisions help taxpayers, others add complexity. If you have questions about how these changes affect your tax situation – let us help (in partnership with your CPA).
More details on these and other OBBBA updates for 2025 can be found here.