The H.R.1 Bill, also known as the “One, Big, Beautiful Bill” Act was signed into law last summer and will have several impacts to be aware of when filing your taxes this year. We’ve compiled a list of relevant changes with brief explanations for you and those you care about.
Certain Provisions in the 2017 Tax Cuts and Jobs Act Were Permanently Extended, such as:
- Lower individual tax rates
- Larger standard deductions
- Child tax credit expansion
- Elimination of personal and dependent exemptions, and itemized deductions for miscellaneous expenses like unreimbursed employee expenses.
530A Accounts
530A Accounts aka “Trump Accounts” are new federally backed investment accounts for kids under 18 years old. Children born between 2025 and 2028 are eligible to receive a one-time $1,000 government contribution. When the child turns 18, they can use the money for education, housing, or other life expenses. If you or someone you know had a child in 2025, remind them to file tax form 4547 to get the process started.
Temporary Deduction for Reduced Taxes on Tips
The new provision creates a temporary deduction for tips up to $25,000 for tax years 2025-2028. To be eligible for this deduction, your income must be below $150,000 ($300,000 for joint filers).
Temporary Deduction for Reduced Taxes on Overtime
The new provision creates a temporary deduction for qualified overtime up to $12,500 ($25,000 for joint filers) for tax years 2025-2028. To be eligible for this deduction, your income must be below $150,000 ($300,000 for joint filers).
Increased Tax Deduction for Individuals Age 65 and Over
For tax years 2025-2028, there is a deduction for seniors up to $6,000 ($12,000 total for married filing jointly). To be eligible, your income must be below $75,000 ($150,000 for married filing jointly).
Temporary Deduction for Car Loan Interest
Allows you to deduct up to $10,000 in qualified car loan interest per year. To qualify, the vehicle must be for personal use and assembled in the United States. Your income must also be below $100,000 ($200,000 for married filing jointly).
Increased State and Local Tax (SALT) Deduction for Homeowners.
The SALT deduction cap is increased from $10,000 to $40,000 and will increase 1% every year through 2029. To qualify for this deduction, your income must be below $500,000. This change benefits taxpayers in states with high state and property taxes.
Certain Energy Efficient Tax Credits are Being Eliminated or Capped.
Home improvements such as energy efficient windows, doors, and solar installations will sunset after 2025. Electric vehicle (EV) credits go away for EVs purchased after September 30th, 2025.
Increased Self-Employment (SE) Deductions.
The 20% Qualified Business Income Deduction is now permanent, with phase-in ranges increased to $75,000 ($150,000 for married filing jointly).
SE individuals can also deduct 100% of business equipment expenses placed in service after January 19th, 2025.
Health Savings Account Expansions for Participants
Permanently changed: Telehealth and remote care services can be received before meeting your deductible for your high-deductible health plan.
Starting January 1st, 2026 – bronze and catastrophic health plans are treated as HSA compatible, making more people eligible to contribute to an HSA.
Furthermore, for those in Oregon, be aware there is a “kicker” this year, also known as the Oregon surplus. This kicker is a way for the state to return excess revenue to taxpayers.
For more information about tax changes, you can visit the IRS website or give us a call to discuss your unique situation and circumstances.
As always, we’re here to empower you to live your unique story with financial clarity and confidence. Let us know how we can be of service.
About TenBridge Partners
TenBridge Partners is an independent financial planning and investment management firm based in Portland, Oregon with a simple focus of honoring the fiduciary responsibility of putting clients first. Guiding with curiosity and trusted expertise, we empower people to live their unique story with financial clarity and confidence.
Planning is central to everything we do. Our focus is on a complete understanding of your needs through the financial planning process, putting your success at the heart of our work.
We strive to create a community where financial planning feels fun, dynamic, and human.
Sirra Anderson Crum CFP®
Financial Planner