📢 The Big Beautiful What? A Plain-English Look at the New Tax Bill
Congress recently passed a massive new tax bill — the One Big Beautiful Bill — and while the name is a little dramatic, it brings real changes that could affect your day-to-day finances.
Whether you’re raising kids, running a business, saving for retirement, or just financing your next car, this bill affects a lot of everyday money stuff. Let’s walk through what matters — in plain English.
👩💼 For Business Owners: More Deductions, More Details
If you’re self-employed or running your own business:
🧰 You could owe less in taxes.
The 20% Qualified Business Income (QBI) deduction is now permanent — and the income limits for phasing it out have been increased. Starting in 2026, there’s also a new minimum deduction for small businesses with at least $1,000 in qualifying income. This is a solid win for both established and growing entrepreneurs.
💪 More generous write-offs.
You may now deduct a larger portion of equipment purchases (like your laptop or business car) all at once — thanks to a combo of expanded Section 179 limits and the return of 100% bonus depreciation (2025–2028). That means you can write off the full cost of big purchases sooner, giving you more flexibility when investing back into your business.
📋 Heads-up on hiring and contractor rules.
The IRS is paying closer attention to how contractors are classified. If you’ve got a VA, social media manager, or other 1099s helping out, there may be new paperwork to handle. And if you are one of those folks, it’s worth checking how your taxes could shift.
📞 These updates aren’t just tax tweaks — they’re opportunities. If you're not sure how to turn them into wins for your business, let’s walk through it.
👨👧👦 For Parents: Some Extra Support
🍼 Child Tax Credit increases to $2,200 per child.
That’s a boost from last year — and as a bonus, it’s now set to increase with inflation each year, helping it keep up with the rising cost of, well… everything.
🎒 Bigger tax break for childcare.
You can now claim up to $4,000 in expenses per child (with a cap of $8,000 per household) for things like daycare, after-school programs, and summer camps — a big help if you're juggling work and parenting.
🎁 Trump Accounts for kids born 2025–2028.
Babies born in this window get a $1,000 starter deposit from the federal government.
Parents, grandparents, and others can contribute up to $5,000/year (after tax).
The account grows over time, but any earnings are taxed as regular income — and you’ll owe a 10% penalty if the money is used for non-qualified reasons before age 59½.
What can you use the money for?
Once your child turns 18, the money can be used for things like:Higher education
Starting a small business
Buying a first home (up to $10,000)
Natural disaster recovery (up to $22,000)
Birth or adoption of a child (up to $5,000)
👶 If your child was born before 2025, they can still open one — but they won’t receive the $1,000 starter. Still, it may be worth considering as a long-term option alongside 529s.
🍼 Not sure how this fits into your long-term plan or what makes the most sense for your family? That’s what I’m here for — book a call and let’s sort it out together.
💡 For Everybody: Money Moves That Just Changed
📍 Still investing in Opportunity Zones? Good news:
The bill extends the ability to defer capital gains by investing in Qualified Opportunity Zones (QOZs) through 2028.
This means if you reinvest capital gains into a QOZ fund, you can potentially delay paying taxes on those gains — and even reduce them depending on how long you hold the investment.
A big plus if you’re building long-term wealth or looking for more strategic investment plays.
📝 Higher standard deductions across the board:
Starting in 2025, the standard deduction will increase to $15,750 for individuals and $31,500 for joint filers, providing broader tax relief for nearly all taxpayers. These amounts are set to adjust annually with inflation.
🎗️ Charitable giving just got sweeter, for some of us, in 2026:
A new permanent charitable deduction is now available for people who don’t itemize: up to $1,000 for single filers or $2,000 for couples filing jointly.
If you itemize your taxes, you can still deduct up to 60% of your adjusted gross income (AGI) for donations to public charities. But there’s now a new rule: you must give at least 0.5% of your AGI to be able to claim the deduction — which means small donations won’t qualify unless they meet that minimum threshold.
🧓 Social Security tax relief for retirees:
Starting in 2026, up to $10,200 of Social Security income will be excluded from federal income tax calculations — but only for individuals under a specific income threshold (adjusted annually for inflation).
In addition, individuals aged 65 and older will receive a new additional standard deduction — up to $6,000 for individuals or $12,000 for couples — aimed at reducing tax liability for retirees living on fixed or limited incomes.
This could significantly reduce the overall tax burden for retirees, especially those still working part-time or drawing down other retirement income sources.
⏱️ Tipped and overtime income just got a break:
Tip income deduction: You can deduct up to $25,000 of qualified tip income from your taxable income each year (2025–2028).
Overtime deduction: You can also deduct up to $12,500 of overtime pay.
Phaseouts: If you earn more than a certain amount, you’ll start to lose the deduction — and it disappears completely if you’re a high earner.
Single filers: Benefits start phasing out at $150,000 AGI and disappear entirely at $400,000.
Joint filers: Phaseout starts at $300,000 AGI and ends at $550,000.
If you work in a service industry or hourly role, this could mean more of your income stays in your pocket — as long as your income falls within the qualifying range.
📚 Student loan changes you should know:
Starting in 2026, you won’t be able to deduct interest on federal student loans from your taxes — a common tax break many borrowers currently use.
Only two repayment plans will be available to new borrowers: a revised Standard Repayment Plan and a new Repayment Assistance Plan (RAP). Existing income-driven repayment (IDR) plans like SAVE, PAYE, and ICR are being phased out for new borrowers.
Current borrowers can keep their existing repayment plans — but they have until July 1, 2028, to switch to the new RAP if they want to.
Parent PLUS loans will have more limited access to income-driven repayment options moving forward. Additionally, Grad Plus loans will been eliminated for new borrowers starting July 1, 2026.
Borrowing caps are being introduced starting July 1, 2026:
Graduate students: $20,500 annual limit; $100,000 total lifetime cap (per student)
Professional degrees (like medical school): $50,000 annual limit; $200,000 total lifetime cap (per student)
Parent PLUS Loans: $20,000 annual limit; $65,000 total lifetime cap (per student)
All federal student loans combined (including undergraduate, graduate, and professional loans), started July 1, 2026 will have a lifetime borrowing cap of $257,500.
📌 These changes make it more important than ever to align your loan strategy with your long-term goals — especially if grad school, professional licensure, or parent loans is in the mix.
🚗 Car stuff you’ll actually care about:
The Clean Vehicle Tax Credit is being phased out — it’s set to end on September 30th, so qualifying electric and hybrid vehicles must be purchased before then. To qualify for the clean vehicle credit before it ends, your car needs to meet the IRS's definition of clean vehicle.
New car loan interest is now tax-deductible — which could matter a lot with today’s rates. Just note: to qualify for this, the vehicle must meet the government’s definition of being American-made.
🩺 Retirement & health updates:
If you’re 50+, you can now put more money into your 401(k) and reduce your taxable income — regardless of how much you earn.
The Saver’s Credit was expanded, giving more people a tax break for contributing to retirement.
Medical expense deduction threshold stays lower — permanently. You can deduct unreimbursed medical expenses that exceed 7.5% of your AGI, instead of the previously scheduled 10% — especially helpful for retirees or those with high out-of-pocket costs.
Health savings flexibility expands. More expenses now qualify for HSA and FSA use, including some over-the-counter medications and menstrual products — which means more practical tax savings for families and caregivers.
🔎 Not sure what’s relevant for your situation? Whether you’re a business owner, parent, or just trying to keep up with the changes, let’s make a game plan together.
🎮 And Just for Fun: What Gamblers Need to Know
🎲 The IRS is watching your wins.
Casinos, apps, and sportsbooks now report smaller winnings, so your casual bets may show up on your tax return.
🎯 And losses? Harder to deduct.
You may not be able to write off as much in gambling losses as before — so your hobby might hit harder come tax time.
So… Now What?
You don’t need to memorize every new rule. You just need to know which ones actually affect you — and what moves make the most sense for your goals.
If you’re a parent, a business owner, or someone simply trying to keep their financial life running smoothly, this is a great time to check in and adjust.
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The money rules may be changing — but your clarity doesn’t have to. You’ve got this — and if this stirred up some questions or 'wait, does that apply to me?' moments, let’s talk about it. Book a call or send an email — I’m here for you.
Talk soon,
