One Big Beautiful Bill Act: 5 Game-Changing Tax Provisions You Can Use Now

he “One Big Beautiful Bill Act” (signed July 2025) rolls out sweeping changes. Here are five provisions that could impact your 2025 tax planning — from overtime deductions to new vehicle interest breaks. cnb.com+4IRS+4BakerHostetler+4

The “One Big Beautiful Bill Act” (signed July 2025) rolls out sweeping changes. Here are five provisions that could impact your 2025 tax planning — from overtime deductions to new vehicle interest breaks. cnb.com+4IRS+4BakerHostetler+4

🧩 Key provisions in focus

1. Deduction for qualified overtime pay If you receive overtime (the “half-time” extra over your regular rate), you may deduct up to $12,500 (for single filers; $25,000 for joint filers), phased out at higher incomes. IRS+2BakerHostetler+2

2. Deduct auto loan interest (qualified vehicles) Under qualifying conditions — vehicle assembled in the U.S., used for personal use, loan origin after December 31, 2024 — you may deduct up to $10,000 in interest. IRS+1

3. Extra deduction for seniors (65+) Taxpayers aged 65+ can take an additional $6,000 deduction (on top of existing senior deductions) for tax years 2025–2028. TurboTax+2IRS+2

4. New “no tax on tips” deduction The law includes a deduction for qualified tips. Employers will be required to report total qualified tips and the occupation of tip earners. IRS+2IRS+2

5. Expanded SALT deduction cap (temporarily) For 2025–2029, the state and local tax deduction limit is raised to $40,000 (from prior $10,000), with phaseouts for higher-income filers. Wikipedia+2IRS+2

🧭 What to watch & strategize

• The overtime and tips deductions are new territory — the IRS will issue guidance, and transition relief applies for 2025. IRS

• The auto interest deduction has eligibility rules; not all vehicle purchases or refinanced loans qualify. IRS+1

• If you’re a senior, the extra deduction may meaningfully reduce your taxable income — especially useful in combination with other deductions.

• Higher SALT limits may help those in high-tax states, but phaseouts mean it’s not fully beneficial for everyone.

• As the IRS issues regulations, timing decisions (when to buy, when to incur overtime, how to report tips) may matter more than ever.

🛠 How All State Tax Resolution can help

• We monitor the IRS guidance as it’s released and update our clients with actionable strategies.

• We can model which provisions deliver the biggest tax savings given your income, deductions, and filing status.

• If you’re unsure whether your pay, vehicle purchase, or tipping income qualifies, we can analyze and advise — before you file.

The One Big Beautiful Bill Act offers new opportunities — but with complexity. Don’t wait until tax season to figure it out. We at All State Tax Resolution are ready now to help you navigate the changes and maximize your benefits.