What Is the One Big Beautiful Bill?
The One Big Beautiful Bill is a sweeping piece of tax legislation passed in 2025, aimed at providing meaningful tax relief to working families, retirees, and businesses across America. This bill introduces major new exclusions for tip and overtime income, increases deductions for state and local taxes, enhances benefits for seniors and parents, and boosts incentives for businesses to invest in equipment and property improvements. With higher deduction limits and expanded credits, the Big Beautiful Bill is designed to simplify the tax code and put more money back in taxpayers’ pockets.
Whether you’re a worker, retiree, parent, or business owner, these changes could have a major impact on your finances. Here’s what’s new, who benefits, and how James D. Miller CPA can help you take advantage of these new opportunities:
1. $25,000 Tip Income Exclusion
Tipped workers can now exclude up to $25,000 in reported tip income from federal income tax (note: payroll taxes still apply). This could mean real savings for anyone in the service industry.
How we help:
We’ll ensure your tips are reported correctly so you get the full benefit of this exclusion.
2. $25,000 Overtime Income Exclusion
If you work overtime, you can exclude up to $25,000 in reported overtime pay from federal income tax (again, payroll taxes still apply).
How we help:
We’ll review your income and ensure overtime pay is properly documented to maximize your tax savings.
3. SALT Deduction Cap Raised to $40,000
The State and Local Tax (SALT) deduction cap has been raised from $10,000 to $40,000 (with some limitations), offering potential relief to those in high-tax states.
How we help:
We’ll determine your eligibility and optimize your deductions for maximum savings.
4. Deductible Interest on American-Made Cars
You may now deduct up to $10,000 in interest paid on loans for personal-use cars assembled in the U.S. under 14,000 lbs (subject to income limitations).
How we help:
We’ll confirm if your vehicle qualifies and guide you in claiming the deduction.
5. “Trump Accounts” for Kids
Parents and guardians can now open Trump Accounts for their existing minor children, contributing up to $5,000 per year in a tax-advantaged way.
How we help:
We’ll walk you through opening and funding these accounts for your family’s benefit.
6. $6,000 Standard Deduction Increase for Seniors
Social Security recipients over 65 will receive a $6,000 increase in the standard deduction.
How we help:
We’ll apply this boost automatically to your return so you get every dollar you’re owed.
7. Estate Tax Exemption Raised to $15 Million
The estate tax exemption is now $15 million, significantly reducing estate tax concerns for most families.
How we help:
Let us help you update your estate plan and ensure your assets are protected.
8. Expanded Deductions for Equipment & Manufacturing
Businesses can now take bigger deductions for newly acquired equipment, certain property improvements, and qualifying real estate used in manufacturing.
How we help:
We specialize in business tax strategies—let’s work together to maximize your deductions and invest wisely.
Key Tax Provisions of the One Big Beautiful Bill
Let James D. Miller CPA Help You Take Advantage
Tax laws are complex, but you don’t have to figure them out alone. At James D. Miller CPA, we are dedicated to helping you understand and apply the latest tax provisions to your unique situation—saving you time, money, and stress.
Ready to get started?
Contact us today to schedule a consultation and make sure you’re getting the most out of the 2025 tax law changes.