The One Big Beautiful Bill Act (119th Congress, 2025–2026): What It Means for You

When Congress names a bill “One Big Beautiful Bill,” you know it’s going to make waves. Officially passed in 2025, this sweeping legislation reshapes major parts of the U.S. tax code — bringing new deductions, adjustments to familiar tax breaks, and a few surprises along the way.

A Quick Overview

The One Big Beautiful Bill Act (H.R.1) aims

to simplify and stimulate the economy through lower taxes and new incentives. It locks in the individual tax cuts from 2017, introduces new deductions for working Americans, creates new savings vehicles for families, and offsets these benefits by reducing federal spending in several areas.

It’s ambitious, complex, and—depending on your situation—potentially game-changing.

Permanent Individual Tax Rate Cuts

The biggest headline? Those lower tax rates introduced in 2017 are now permanent. For most individuals and families, that means more take-home pay and fewer tax headaches each April.

However, the benefit isn’t uniform. Higher-income earners will notice phase-outs that limit their ability to take advantage of certain deductions. It’s a win for the middle class, but one that still comes with fine print.

An Expanded SALT Deduction

The State and Local Tax (SALT) deduction has long been a point of contention, especially for taxpayers in high-tax states. Under the new law, the SALT cap increases from $10,000 to $40,000 for qualifying filers.

That’s good news for homeowners and business owners who’ve felt the pinch of the original limit. But don’t get too comfortable—this higher cap isn’t permanent and will eventually revert to previous levels.

New Deductions: Auto Loans, Tips, and Overtime Pay

Here’s where the “beautiful” part might actually ring true for some taxpayers. The Act introduces a few new deductions designed to support working Americans.

If you’re financing a vehicle assembled in the United States, the interest on your auto loan may now be deductible. This small but meaningful change encourages support for U.S. manufacturing while offering an extra tax break to everyday drivers.

Additionally, certain taxpayers in middle-income brackets can now deduct tips and overtime pay—a welcome update for hourly workers, servers, and anyone whose income fluctuates with their schedule.

Introducing “Trump Accounts”

In one of the most talked-about provisions, the law creates new “Trump Accounts”—tax-advantaged savings accounts for children born between 2025 and 2028.

These accounts allow families to save for their children’s future with tax-free growth, much like a 529 plan or Health Savings Account (HSA). However, unless extended by future legislation, these accounts will only be available for a limited four-year window.

The 1% Remittance Tax

Starting in 2026, the law will impose a 1% excise tax on certain international money transfers. While this may not affect everyone, it’s significant for:

• Businesses making payments abroad, such as importers and contractors

• Individuals who send money to family members outside the U.S.

  
  

Planning ahead will be essential for those who frequently make international transfers, as even small fees can add up over time.

Funding Cuts and Economic Offsets

To balance the tax reductions, the Act makes substantial cuts to programs like Medicaid, SNAP, and other federal assistance initiatives.

While these changes don’t directly alter your tax return, they could affect households and local economies indirectly—particularly in communities that rely on these programs.

So, What Does This Mean for You?

In short: more opportunity, more complexity.

The One Big Beautiful Bill Act gives taxpayers several new ways to reduce taxable income, but it also complicates the landscape of deductions, credits, and eligibility limits. For small business owners, the ripple effects could influence everything from payroll and benefits to long-term financial planning.

Belshaw Accounting’s Take

We believe every major tax change is both a challenge and an opportunity. This new law may open doors for strategic planning—if you know where to look.

We’re here to help you:

• Understand which deductions apply to you or your business

• Adjust your tax strategy to maximize savings

• Stay compliant as new rules take effect in 2025 and beyond

  
  

Ready to Plan Ahead?

The sooner you understand how this law affects your financial picture, the better positioned you’ll be to take advantage of its benefits.

📲 Schedule a consultation with our team today to review your 2025 tax plan.Together, we’ll make sure this “beautiful bill” works in your favor—not against it.