The One Big Beautiful Bill Act Simplified: Key Tax Updates and New Guides Available

From the Desk of Alan Hensley, CFP®, Wealth Advisor | Vice President

The One Big Beautiful Bill Act Simplified: Key Tax Updates and New Guides Available

The One Big Beautiful Bill Act (OBBBA)—signed into law on July 4, 2025—introduces sweeping updates to the U.S. tax code.

The OBBBA marks a substantial shift in federal tax policy, combining extensions of past reforms with new deductions and incentives. For many taxpayers, these changes will mean lower taxes or more tax flexibility. But because many provisions are temporary, phased, or subject to income thresholds, there’s real value in planning now.

To help navigate these changes, new downloadable tax guides are available below.

Key Tax Changes Under the OBBBA

  1. Deductions for Tips and Overtime
    Workers in tip-based jobs can now deduct up to $25,000 of tips, and employees may deduct up to $12,500 of overtime pay. These benefits phase out for higher earners.
  2. SALT Deduction Cap Increase
    The State and Local Tax (SALT) deduction cap rises from $10,000 to $40,000 for most filers, offering relief to residents in high-tax states.
  3. New Senior Deduction
    Taxpayers 65 and older can claim an additional $6,000 deduction, on top of their standard or itemized deductions. These benefits also phase out for higher earners.
  4. Auto Loan Interest Deduction
    Interest on new U.S.-assembled vehicle loans is now deductible—up to $10,000 annually for qualifying buyers.
  5. TCJA Extensions
    The OBBBA makes permanent many provisions of the Tax Cuts and Jobs Act, including current tax brackets and bonus depreciation rules for businesses.
  6. Additional Charitable Deduction (2026)
    Starting in 2026 you will be allowed to deduct up to $1,000 in cash donations ($2,000 for joint filers) as a non-itemized deduction.

What You Can Do Now

  • Review your income sources (tips, overtime, etc.) for new deductions.
  • Update your withholding or estimated payments.
  • Model your 2025 taxes using the new brackets and rules.
  • Consult the downloadable guides and your tax professional

Final Takeaway

The One Big Beautiful Bill Act offers fresh opportunities for tax savings—but also new complexity. Staying informed now can help you make smart financial moves before year-end.

Download these OBBBA tax guides today to see how the new rules affect you: