One Big Beautiful Bill Act
Navigating the OBBBA: How We Can Help
This summer's "One Big Beautiful Bill Act" has introduced some of the most significant tax code changes in recent memory. With any major shift in the tax code, it's natural to feel a sense of uncertainty. Questions like "How does this affect my family?" and "Am I missing out on potential savings?" are common. At Jakubowski Tax Service, our primary role is to cut through that noise and provide clear, actionable guidance.
We're here to help you navigate these new laws and ensure you're positioned to take full advantage of every opportunity. It’s not just about compliance; it's about understanding the new landscape. Here are some of the key changes we are guiding our clients through for the 2025 tax year:
Deduction for Tipped Employees: A brand-new deduction is available for qualified tip income, finally acknowledging the unique financial structure for service industry professionals.
Deduction for Overtime Pay: You may now be able to deduct a portion of your overtime compensation, a provision designed to provide direct relief for hourly workers.
Deduction for Car Loan Interest: A deduction is now available for interest paid on qualifying new vehicle loans, aiming to ease the financial burden of a major household expense.
Additional Deduction for Seniors: Taxpayers 65 and older can claim a new deduction, offering further support for retirees and those on fixed incomes.
Increased Standard Deduction: The standard deduction has been raised for everyone, which simplifies the filing process for many while offering a direct reduction in their taxable income.
Enhanced Child Tax Credit: The Child Tax Credit has been permanently increased, providing more substantial and reliable support for growing families.
Increased SALT Deduction Cap: The limit on deducting state and local taxes has been raised, a change especially beneficial for homeowners in states like Wisconsin.
Many of these powerful new provisions have specific income limitations and are set to expire at the end of 2028, which makes strategic, long-term planning essential. Understanding how these rules apply to you is the first step. Navigating them effectively is about more than just checking boxes on a form; it's about understanding how they fit into your overall financial life. Our team is ready to answer your questions, assess your specific situation, and help you build a clear, confident path forward through this new tax landscape.