2025 U.S. Tax Law Changes: Why Bookkeeping and Tax Planning Matter More Than Ever

1. Key Tax Law Changes in 2025

One Big Beautiful Bill Act (OBBBA) — Enacted July 4, 2025

• Signed into law as H.R. 1, it permanently extends the Tax Cuts and Jobs Act (TCJA) provisions set to expire after 2025
• Maintains low individual tax brackets and the highest rate at 37%—preventing scheduled increases to 39.6% in 2026
• Makes the higher standard deduction permanent and removes personal and dependent exemptions on a lasting basis

Inflation Adjusted Thresholds

• Standard deduction rises to $30,000 for married filing jointly, $22,500 for heads of household, and $15,000 for single filers in 2025
• Foreign earned income exclusion increases to $130,000
• Other thresholds—including AMT exemptions and the Earned Income Tax Credit (EITC)—are adjusted upward for inflation

New Deduction Provisions (2025–2028)

• No Tax on Tips: Up to $25,000 deduction annually against tipping income—phases out above certain income levels
• No Tax on Overtime: Eligible overtime pay deduction capped at $12,500 (individual) or $25,000 (joint)
• Senior Deduction: Taxpayers aged 65+ receive $6,000 additional deduction—even if itemizing
• New Auto Loan Interest Deduction: Up to $10,000 deductible interest for U.S. assembled vehicles
• Expanded Child Tax Credit: Up to $2,200 per qualifying child in 2025, indexed moving forward
• Greater SALT Deduction Cap: Raised to $40,000 (joint) through 2029
• Charitable Giving Tweaks: Non-itemizers can deduct up to $1,000 (individual) or $2,000 (joint)

Business & International Changes

• Bonus Depreciation re-allowed at full first year expensing for qualifying property placed in service after January 19, 2025
• BEAT Tax Rate held at 10% in 2025, rising only to 10.5% in 2026
• New remittance excise tax: 1% on cross-border cash/money order transfers post 2025
• Clean energy credits rollback: Residential solar and EV credits end December 2025

2. Why Bookkeeping & Accounting Matter Right Now

• Accurate Income Reporting: Many new deductions require detailed tracking and categorization of income types
• Monitoring Phase Outs & AGI: Deductions phase out sharply once Modified AGI thresholds are crossed
• Compliance With New Rules: Careful bookkeeping and timely tax support help avoid penalties

3. The Strategic Case for Tax Planning

• Optimize Timing: Planning when to accelerate or defer income and contributions is key
• Income Management: Strategic contributions and filing status changes help navigate thresholds
• Family & Life Events: Births, adoptions, and caregiving impact credit/deduction eligibility
• Business Investment Choices: Immediate expensing can influence purchasing timelines

Blog Summary

The 2025 One Big Beautiful Bill significantly reshapes the U.S. tax landscape—preserving TCJA features permanently, adding targeted deductions for tipped/overtime income, seniors, families, and expanding SALT and child credits. While some changes apply predominantly for 2025–2028, others restructure long term tax policy.

Well maintained bookkeeping and strategic accounting are essential to track new income types, plan eligible deductions, and keep AGI in favorable ranges. Pair that with proactive tax planning to time income, optimize retirement and HSA contributions, and structure transactions around phase outs—and you’ll be better positioned to reduce tax liability and maximize compliance. At Corporate Capital we work quarterly with our clients to ensure they are in the best position possible before the clock strikes midnight on December 31st.

✅ Final Takeaway

Tax legislation often changes slowly—but rarely so sweeping. With the OBBBA in effect for 2025, individuals and businesses alike must update bookkeeping systems and revisit planning strategies. Stay organized, stay informed, and partner with trusted advisors to put yourself in the best tax position ahead of filing season.

Any aspect you’d like to dive deeper into—eligibility rules, specific phase out thresholds, or guidance on bookkeeping tools and workflows—just let us know and we are happy to answer any tax questions you may have.

Why Businesses Nationwide Trust Corporate Capital, Inc.

At Corporate Capital, Inc., we believe that your success is our success. That is why we go the extra mile to provide expert guidance, personalized service and a proactive approach to business management. Our team of experienced professionals—including licensed tax preparers, bookkeepers and legal advisors—is dedicated to helping your business grow.

Whether you need help starting your business, managing your finances or planning for the future, you can count on us to be your partner at every stage.

Ready To Take the Next Step?

Contact Corporate Capital, Inc. today and connect with our knowledgeable team in Las Vegas, Nevada. Let us help you build a brighter, more profitable future—no matter where you are on your business journey. Call 855-371-0070 today to connect with an expert and take the next step toward financial peace of mind!