By Lea Ann Sanford | P&L Business Services
The Big Beautiful Bill is officially law! 🏛️ This major legislation brings important changes that will directly impact many of our clients at P&L Business Services. I’ve carefully reviewed the details and pulled out what matters most for the tax returns we prepare every day. 📊
Below are key highlights directly from Congress.gov and the bill itself to keep you informed and prepared:
📋 Official Highlights from the Bill
💰 (Sec. 70102)
Standard Deduction Increases:
$15,750 for single filers
$23,625 for heads of household
$31,500 for married filing jointly
(Adjusted annually for inflation.)
👵 (Sec. 70103)
Personal Exemption Changes:
Permanently repealed for most taxpayers.
TEMPORARY deduction of up to $6,000 for individuals 65+ (from 2025 to 2028, income limits apply).
👶 (Sec. 70104)
Child Tax Credit Increased:
$2,200 per child starting 2025.
Adjusted for inflation beginning in 2026.
$500 credit for other dependents made permanent.
Refundable amounts and phaseout thresholds locked in at $200,000 ($400,000 for joint filers).
💵 (Sec. 70201)
Tip Income Deduction:
Up to $25,000 deduction on qualified tip income (2025–2028).
Phases out above $150,000 income ($300,000 for joint filers).
⏰ (Sec. 70202)
Overtime Pay Deduction:
Up to $12,500 deduction ($25,000 for joint filers) for qualified overtime pay (2025–2028).
Same phaseout limits apply.
🚗 (Sec. 70203)
Auto Loan Interest Deduction:
Deduct up to $10,000 in interest on personal-use auto loans (2025–2028).
Income limits apply.
🏗️ (Sec. 70301)
Bonus Depreciation Extended:
100% bonus depreciation now permanent for eligible business purchases placed in service after January 19, 2025.
📈 What This Means for You
✅ Bigger standard deductions for individuals and families
✅ Additional deductions for seniors (65+)
✅ Higher child tax credits for families
✅ New savings for tipped and hourly workers
✅ Interest deductions on vehicle purchases
✅ Business benefits through continued bonus depreciation
💬 Have Questions? I’m Here to Help.
These changes could impact your next tax return directly. If you’re wondering how this affects you personally or as a small business owner, reach out anytime—P&L Business Services is here to help with filing and reporting.
📲 Contact P&L Business Services Today!
For full legislative details, visit Congress.gov.
Lea Ann Sanford, MAcc
Owner, P&L Business Services
Your Numbers. Our Passion. 😴📊
📞 Call us at 865.294.4792
📧 Email Info@PandLBusinessServices.com
🌐 Visit: pandlbusinessservices.com