Congress has officially passed the “Big Beautiful Bill,” and with it comes one of the most significant tax code overhauls in recent memory. Whether you’re an individual taxpayer or running a business, this new legislation includes changes that could directly affect your bottom line.

Here’s a comprehensive look at the most impactful tax provisions in the bill—and what they could mean for your 2025 return.

Increased State and Local Tax (SALT) Deduction Cap

One of the most talked-about changes:

• The SALT deduction cap has been raised from $10,000 to $20,000 for individuals and $40,000 for joint filers.
• This is especially beneficial for taxpayers in high-tax states like California, New York, and Illinois.

Overtime and Tip Income Now Tax-Exempt (Up to a Limit)

For W-2 employees:

• The first $12,500 of overtime pay is now federally tax-exempt ($25,000 if married filing jointly).
• Tips are now tax-exempt up to $25,000, regardless of filing status.
• This provision is designed to support lower- and middle-income workers in industries such as hospitality, retail, and healthcare.

Standard Deduction & Child Tax Credit Expanded

• The standard deduction is now $15,750 for single filers and $31,500 for married filing jointly (MFJ).
• An additional $6,000 deduction for seniors (age 65+), up to $12,000 for couples if both spouses are over 65.
• The Child Tax Credit has been increased to $2,500 per child, and it’s now fully refundable.

Estate Tax Exemption Increased

• The federal estate tax exemption has been raised from $13.61 million to $18 million per individual, or $36 million per couple.
• This change provides substantial planning opportunities for high-net-worth individuals and family-owned businesses.

100% Bonus Depreciation Restored Through 2027

• Businesses can now immediately expense 100% of qualified asset purchases (equipment, machinery, etc.) through 2027.
• This accelerates tax savings and encourages capital investment.

Section 179 Expensing Increased

• The Section 179 deduction limit has been raised to $1.5 million, with a phase-out threshold of $4 million.

Corporate Tax Rate Lowered

• The corporate tax rate drops from 21% to 19%, improving cash flow and competitiveness.

Pass-Through Deduction (QBI) Preserved and Adjusted

• The 20% Qualified Business Income (QBI) deduction remains intact, with expanded income thresholds for eligibility.

Green Energy and Efficiency Credits

• Businesses that invest in solar energy, electric vehicles, and building efficiency upgrades can benefit from new or enhanced tax credits under the bill.

Now is the time to re-evaluate:

• Your withholding strategy and estimated tax payments
• Estate planning to leverage the higher exemption
• Capital purchases before year-end to claim 100% bonus depreciation
• Whether to itemize or take the expanded standard deduction

At Wilson Accounting Group, our goal is to help you make the most of every tax-saving opportunity in this new environment. Whether you’re a business owner, a high-net-worth individual, or just trying to keep your tax bill down, we’re here to guide you through the changes.