One Big Beautiful Bill – New Tax Law Updates

Here’s what you need to know about the new tax law called the One Big Beautiful Bill.

📅 When does it start?

Most of the new tax rules start in tax year 2025, which means they will affect the taxes you file in 2026.

✅ What are the important changes?

• New Tip Deduction

If you earn tips (like waiters, baristas), you can deduct up to $25,000 in tips from your income (2025–2028).

• Overtime Pay Deduction

If you work overtime (extra hours), you can deduct up to $12,500 from your income (2025–2028).

• Bigger Child Tax Credit

The credit increases to $2,200 per child under 17, starting in 2025.

• No More Credits for EVs and Energy Improvements

Beginning after 2025, there will be no more tax credits for:

• Electric or hybrid cars

• Home upgrades, such as solar panels and insulation, etc.

• Changes to Student Loans and Medicaid

Student loans, Pell Grants, and Medicaid programs are being updated.

👨‍👩‍👧 What parents should know:

• Starting in 2025, the Child Tax Credit is $2,200 per child under age 17.

• Must have valid Social Security Numbers to qualify.

🚫 What’s ending soon?

• Energy Credits for home improvements will end after 2025.

• The Electric Car Credit ends for vehicles purchased after September 30, 2025.

📌 Final Note

These new rules will not apply to your 2024 taxes (filed in 2025). They start with 2025 income, which you will file in 2026.

💼 Need help understanding your taxes? Contact Us

We help individuals and small business owners with:

✅ Bookkeeping

✅ Tax Preparation

✅ Payroll

✅ LLC Formation

✅ Business Consulting

📱 Tel: 619-721-3421

📧 Email: nexfinancepro@gmail.com

🌐 Website: www.nexfinancepro.biz