2025 Federal Tax Update (OBBBA)

What changed for your taxes in 2025?

Practical summary organized by Business and Personal. Use the quick calculators for planning; we’ll confirm details during your engagement.

Note: Numbers here are simplified for planning and may be subject to IRS guidance, phase-outs, or state conformity. This page is educational, not tax advice.

Business (LLC/LLP, S-Corp, C-Corp, Sole-Prop)

Investment & Expensing

  • 100% bonus depreciation for qualified property placed in service after Jan 19, 2025 (generally full first-year write-off if eligible).
  • Section 179 remains robust with high expensing limits; coordinate with bonus and state rules.

Ongoing Deductions

  • QBI §199A (pass-through) continues — subject to trade eligibility and income limits.
  • Business interest limitation uses EBITDA-based ATI (favorable for capital-intensive firms).

We map these to your purchases (equipment, vehicles) and entity structure when we prep your return.

Personal (W-2 / Individual)

Standard deduction (2025)

  • Higher base standard deduction (e.g., ~$31,500 MFJ / ~$15,750 Single, per preliminary IRS figures).

Targeted breaks

  • Overtime premium deduction (temporary caps apply) — estimator below.
  • Other targeted items (e.g., certain tip/senior deductions) — subject to income limits and years in effect.

SALT cap

  • Higher temporary cap for some filers; we’ll test itemize vs standard for your case.

Quick Calculators

Planning tools only. Actual results depend on your full return and current IRS guidance.

Personal — Overtime Premium Deduction Estimator

Estimate Deduction
Enter values and click “Estimate Deduction.”

We estimate the deductible “premium” portion as (multiplier − 1) × hourly × OT hours, capped by filing status.

Business — First-Year Write-Off Estimator

Estimate
Enter cost and your tax rate, then click “Estimate.”

Assumes full immediate expensing eligibility and state conformity; savings ≈ deduction × marginal rate.

Want us to run your exact numbers (W-2s, 1099s, equipment purchases, mileage, SALT)? Book a free 15-min consult.