If you missed our final Nisivoccia Presents webinar of 2025, you can now watch the full recording on demand. Our tax specialists provided timely updates from the One Big Beautiful Bill Act (OBBBA), along with planning strategies for both individuals and businesses as they head into 2026.

Watch the replay below:

Meet Our Presenters

Our expert tax presenters offered insights across individual taxation, changes affecting employers and employees, compliance, estate planning, and business strategy:

• Harlene Stevens, CPA – Tax Director

• Deirdre Hartmann, CPA – Tax Partner

• Glenn Schwier, CPA, JD – Tax Partner

Key Summary

Individual Tax Changes Under OBBBA

Major updates begin in 2025 and affect deductions, credits, and long-term planning strategies. Key highlights include:

• New Senior Deduction (2025–2028)
  Up to $6,000 per person age 65+, regardless of itemizing.

• Revised SALT Deduction Cap (2025–2029)
  Minimum and maximum caps expand based on filing status and income.

• Charitable Contribution Changes (2026)

  • Non-itemizers can deduct up to $1,000 ($2,000 MFJ).

  • Itemizers can only deduct contributions above 0.5% of AGI.

• Energy Credit Sunsets (2025)
  EV and home energy credits phase out after 2025.

Auto Loan Interest Deduction

From 2025–2028, taxpayers may deduct up to $10,000 of interest per year on qualifying passenger vehicles that meet all three criteria:

• New vehicle

• Final assembly in the U.S.

• Personal use

Lenders will issue a specific tax form to report interest beginning in 2026.

Expanded Benefits for 529 Plans

Beginning in 2026, 529 distributions expand to cover more education and licensing expenses, including:

• K–12 non-tuition educational materials and tutoring

• Trade, licensing, IT, healthcare, cosmetology, real estate, CDL, and financial credentials

• Continuing education and exam fees

Trump Accounts: New Tax-Free Savings for Minors

A new OBBBA-created program offers tax-free investment growth for children under 18. Key features:

• Becomes a Traditional IRA automatically at age 18

• Annual contribution limit: $5,000

• $1,000 pilot automatic enrollment for eligible births between 2025–2028

• Early withdrawal rules follow IRA penalties, but some exceptions apply (first home, education, etc.)

Business Tax Updates Under OBBBA

Changes impacting business owners include:

• Permanent 100% bonus depreciation (property acquired after 1/1/2025)

• 1099-MISC/NEC reporting threshold increases to $2,000 (2026)

• 1099-K threshold reverts to $20,000/200 transactions starting in 2025

R&D expense treatment changes—consult your tax advisor for planning considerations.

New: Tax Deductions for Tips & Overtime

The OBBBA creates temporary (2025–2028) deductions for:

• Qualified Tips – up to $25,000

• Qualified Overtime – up to $12,500/person ($25,000 MFJ)

Employers must update payroll systems and reporting practices. Some beauty service businesses are now eligible for the tip credit under Form 8846.

Estate & Gift Tax Changes for High-Net-Worth Individuals

Beginning January 1, 2026:

• Federal estate & gift exemption increases to $15 million per person

• Married couples may shelter up to $30 million

• Portability remains, but the GST tax exemption is not portable

• Annual exclusions remain $19,000 per donee

Estate documents and beneficiary designations should be reviewed to reflect these changes.

Many of the OBBBA tax benefits include income thresholds, expiration dates, or temporary provisions. To make the most of these changes, consider the following timing strategies as you plan for year-end.

Practical Tax Timing Strategies for 2025

Our presenters emphasized key planning opportunities before sunset dates and phase-outs:

• Pre-pay property and state taxes if assessed

• Bundle charitable giving in high-income years

• Consider donor-advised funds in 2025

• Weigh SALT vs. standard deduction benefits

• Invest in energy upgrades before 12/31/25

• Time income to stay below phase-out thresholds

Questions or Need Personalized Planning?

If you’d like to discuss how the OBBBA impacts you or your business, please get in touch with our tax team.