Signed bill - tax changes

Happy 4th ! You may be tired of hearing about the "Big Beautiful Bill" that has been tossed around for a while and was just signed today. However, it's my duty and desire to track and report on the tax items. They are numerous and I have not yet taken a deep dive, but in the meantime, here is a quick summary of a few items that will likely impact my clients and friends:

• The individual return rates in effect since 2018 were set to expire after 2025. Now they will remain.

• The higher standard deductions in effect since 2018 were set to expire after 2025. Now they will remain.

• Personal exemption were eliminated in 2018 and set to come back after 2025. That is not happening.

• Child tax credit increases to $2,200 (I believe this starts 2025).

• Miscellaneous itemized deduction were removed in 2018 and set to come back after 2025. They are not coming back.

• Moving expense deduction was removed in 2018 (for most people) and set to come back after 2025. It is not coming back.

• Charitable contribution deduction created for people that don't itemize deductions. Will start in 2026.

• Tax benefit created on "qualified" tip income (doesn't seem I can change my billing to have clients pay me in "tips" instead of regular fees !)

• Tax benefit created for overtime pay (hmmm...can my S-corporation pay me overtime?? I mean...I work ridiculous hours during tax season)

• Seniors get an extra "larger" deduction for their standard deduction

• Tax benefit for certain personal use car loan interest

• State tax deduction on Schedule A has been limited to $10,000 since 2018. Now it is generally raised to $40,000 (Thank goodness - this really has been a pain to deal with on tax returns - it was a ridiculous provision)

• QBI deduction was created in 2018 and was 20% of pass through business income. It was set to expire after 2025. It will remain.

• Form 1099 filing threshold was $600. Now it is $2,000. 1099 reporting is horribly burdensome, so hopefully this higher threshold will help)

• Bonus depreciation will once again be 100%

• Certain energy tax credit will be eliminated