YOUR GUIDE TO THE ONE BIG BEAUTIFUL BILL

Ned Jackson Tax Service: Your Guide to the One Big Beautiful Bill (OBBB) Tax Updates

Welcome back to Ned’s Blog Spot, where we keep you informed about the latest tax changes to ensure your filing experience is smooth and stress-free! The recently passed One Big Beautiful Bill Act (OBBB), signed into law on July 4, 2025, brings significant updates to the U.S. tax code, building on the 2017 Tax Cuts and Jobs Act (TCJA). At Ned Jackson Tax Service, we’re here to break down the key changes that could impact you, your family, or your business. Read on to learn what’s new and how we can help you navigate these updates. For personalized assistance, visit us at nedjacksontax.com or call us at 904-356-0349.

Key OBBB Tax Provisions for Individuals and Businesses

The OBBB introduces a mix of permanent extensions and new provisions to the TCJA, alongside temporary changes that affect deductions, credits, and more. Here’s what you need to know:

1. Permanent Tax Brackets and Standard Deduction Increases

• Income Tax Rates: The OBBB locks in the TCJA’s individual income tax rates (10% to 37%), preventing a scheduled increase to 39.6% for top earners. This ensures predictable tax planning for years to come.
• Standard Deduction: The standard deduction is permanently set at $15,750 for single filers and $31,500 for married couples filing jointly, with annual inflation adjustments. A temporary boost of $1,000 (singles) or $2,000 (joint filers) applies for 2025.
• Senior Bonus Deduction: Taxpayers aged 65+ can claim an additional $6,000 deduction starting in 2025, making it easier for retirees to reduce taxable income.

2. State and Local Tax (SALT) Deduction Increase

• The SALT deduction cap, previously $10,000, rises to $40,000 for 2025–2029, benefiting those in high-tax states like Florida. However, this cap phases out for incomes above $500,000 and reverts to $10,000 in 2030.
• Implication: If you itemize deductions, this could allow for greater tax savings, especially for property taxes. Our team at Ned Jackson Tax Service can help determine if itemizing is right for you.

3. Qualified Business Income (QBI) Deduction Made Permanent

• The 20% QBI deduction for sole proprietors, S-Corps, and independent contractors (like many Jacksonville small business owners) is now permanent, with expanded phaseout ranges for higher earners.
• Why It Matters: If you’re self-employed or own a pass-through business, this deduction remains a powerful tool for reducing taxable income. Let us help you maximize it!

4. Research & Development (R&D) Expense Deductions

• Starting in 2025, domestic R&D expenses can be immediately deducted, reversing the TCJA’s requirement to amortize them over five years. Small businesses with average annual gross receipts under $31 million can retroactively expense R&D costs for 2022–2024 by filing amended returns.
• For Tech Companies: This change is a game-changer for Jacksonville startups and tech firms investing in innovation. Contact us to see if you qualify for retroactive savings.

5. 100% Bonus Depreciation Returns

• Businesses can deduct 100% of the cost of qualified property (e.g., equipment) placed in service from January 20, 2025, through 2030. The Section 179 deduction cap also increases to $2.5 million.
• Opportunity: If you’re planning business investments, this provision can significantly lower your tax bill. Our experts can guide you through cost segregation and depreciation strategies.

6. New Deductions for Tips, Overtime, and Auto Loans

• Tips and Overtime: From 2025–2028, you can deduct up to $25,000 of qualified tips and overtime pay without itemizing, though Social Security and Medicare taxes still apply.
• Auto Loan Interest: A new deduction allows up to $10,000 for interest on loans for U.S.-assembled cars, also effective 2025–2028.
• Who Benefits: Service industry workers, hourly employees, and new car buyers in Jacksonville can see tax relief. Let us help you claim these deductions correctly.

7. Child Tax Credit and Charitable Giving

• The Child Tax Credit increases to $2,200 per child in 2025, with the $1,400 refundable portion made permanent and inflation-adjusted.
• Non-itemizers can deduct up to $1,000 (singles) or $2,000 (joint filers) for charitable cash donations starting in 2026. However, itemized charitable deductions now face a 0.5% AGI floor.
• Planning Tip: Families and donors, we can help you optimize these credits and deductions for maximum benefit.

8. Estate and Gift Tax Exemption

• The estate and gift tax exemption rises to $15 million per person ($30 million for couples) in 2026, indexed for inflation, offering significant planning opportunities for high-net-worth clients.

Economic Impact of the OBBB

The OBBB is projected to boost long-run GDP by 1.2% but increase federal deficits by $3.8 trillion over the next decade due to $5 trillion in tax revenue reductions offset by $1.1 trillion in spending cuts. The debt-to-GDP ratio will rise from 117.1% to 126.7% by 2034, which could impact future tax policies. At Ned Jackson Tax Service, we’ll keep you updated on how these changes affect your financial planning.

Why Choose Ned Jackson Tax Service?

Since 1946, Ned Jackson Tax Service has been Jacksonville’s trusted partner for tax preparation, bookkeeping, and notary services. Our experienced team, with over 26 years of expertise per agent, stays current on all IRS updates, including the OBBB’s complex provisions. Whether you’re an individual, small business, or corporation, we provide personalized, accurate, and proactive tax solutions to maximize your benefits.

• Year-Round Support: Visit our Downtown office or seasonal locations at 2805 Dunn Avenue, 6510 Beach Blvd, or 5860 Normandy Blvd (reopening January 2026).
• Expert Planning: We identify tax-saving opportunities well before filing season, ensuring you’re prepared.
• Contact Us: Call 904-356-0349 or email info@nedjacksontax.com to schedule an appointment. Check out our services at nedjacksontax.com.

Stay Informed with Ned’s Blog Spot

Tax laws are complex, and the OBBB adds new layers to navigate. Don’t get blindsided this tax season! Visit our blog at nedjacksontax.com for monthly updates or follow us on social media for the latest tax tips. Have questions about how the OBBB affects you? Our team is ready to help. Call us today at 904-356-0349 to book your consultation.

Let Ned Jackson Tax Service guide you through the One Big Beautiful Bill and beyond—because your taxes deserve the best care in Jacksonville!