Top 10 OBBB items most taxpayers ask about
These are the most “real-life” changes highlighted in IRS OBBB guidance—organized for quick scanning.
1) Standard deduction increases (2025–2026)
2026: $32,200 (MFJ) / $16,100 (Single/MFS) / $24,150 (HOH). 2025 amounts also updated.
2) Updated 2026 bracket thresholds + inflation adjustments
IRS lists updated marginal rate thresholds for 2026 (planning impact for withholding/estimates).
3) Senior deduction (age 65+) for 2025–2028
Additional deduction for eligible seniors with phaseouts at higher income levels.
4) “No tax on tips” deduction (2025–2028)
Deduction for qualified tips with caps, phaseouts, and occupation rules.
5) “No tax on overtime” deduction (2025–2028)
Deduction for qualified overtime portion with caps and phaseouts.
6) Car loan interest deduction + reporting requirements
Includes borrower return requirements (e.g., VIN) and lender reporting transition relief for 2025.
7) HSA expansion (telehealth + eligibility changes)
Telehealth safe rule (permanent for plan years starting 2025) + bronze/catastrophic & DPC changes starting 2026.
8) Premium Tax Credit changes (Marketplace)
IRS notes removal of limits on repayment of excess advance PTC for tax years beginning after Dec 31, 2025.
9) Clean vehicle credits accelerated end
New/Used/Commercial clean vehicle credits not allowed for vehicles acquired after Sept 30, 2025.
10) Home energy credits accelerated end
25C: not allowed for property placed in service after Dec 31, 2025. 25D: not allowed for expenditures after Dec 31, 2025.
Source: IRS OBBB provisions hub + IRS “Individuals and workers” OBBB page. Always verify eligibility, caps, and effective dates in IRS guidance.
YebboTax • WP Page •
OBBB / “One, Big, Beautiful Bill”
One, Big, Beautiful Bill Act (Public Law 119-21): What it means for your taxes
A plain-English guide to key federal tax changes highlighted by the IRS—organized by individuals, healthcare, businesses, clean energy, and more—plus a fast FAQ to help you decide what applies to you.
Powered by YebboTax • a division of Yebbo Communication Network • Since 1999
Quick highlights (IRS hub topics)
Browse the major areas covered on the IRS OBBB provisions page.
Individuals & workers
Healthcare
Businesses
Clean energy
Investment & community
Charities
Other taxes
On this page
Jump to the section you need.
Important note
Educational only. Tax outcomes depend on your facts. For filing decisions,
documentation, and eligibility checks, contact YebboTax.
IRS states the law was signed July 4, 2025 as Public Law 119-21.
Individuals & workers
Key items highlighted by the IRS
- Tax inflation adjustments (standard deduction amounts and bracket thresholds for 2025–2026).
- Deduction for seniors (additional deduction for eligible taxpayers age 65+ for 2025–2028, with income phaseouts).
- “No tax on tips” (deduction for qualified tips for 2025–2028, up to an annual cap, with income phaseouts and occupation rules).
- “No tax on overtime” (deduction for qualified overtime portion above regular pay for 2025–2028, with caps and phaseouts).
- “No tax on car loan interest” (deduction rules and reporting requirements; includes VIN and vehicle criteria).
Tip: Keep your documents. Several items rely on what’s reported on W-2/1099 (or other statements),
and some claims require additional info (example: VIN for car interest deduction).
Snapshot: Standard deduction amounts (as listed by IRS)
Helpful for planning and estimating—always confirm your filing status.
| Tax year | Married filing jointly | Single / MFS | Head of household |
|---|---|---|---|
| 2026 | $32,200 | $16,100 | $24,150 |
| 2025 | $31,500 | $15,750 | $23,625 |
Values shown are pulled from the IRS Individuals & Workers OBBB page and are subject to IRS updates/guidance.
Healthcare
Health Savings Account (HSA) expansion
- Telehealth: Certain telehealth/remote care can be used before meeting an HDHP deductible while still allowing HSA contributions (permanent for plan years starting on/after Jan 1, 2025).
- Bronze/catastrophic plans: Starting Jan 1, 2026, treated as HSA-compatible (broadening who can contribute).
- Direct Primary Care (DPC): Starting Jan 1, 2026, certain DPC arrangements may allow HSA contributions (if otherwise eligible) and permit tax-free use of HSA funds for periodic DPC fees.
Premium Tax Credit (PTC) updates
- IRS describes changes affecting repayment limitations for excess advance PTC for tax years beginning after Dec 31, 2025.
- Also notes elimination of certain PTC rules that were tied to 2020–2021 circumstances.
If you use Marketplace coverage, small changes can impact your filing. Ask YebboTax to review your 1095-A and reconciliation.
Businesses
Vehicle loan interest reporting (transition relief for 2025)
Primarily affects lenders and payors who must file information returns and provide borrower statements.
- IRS describes transition relief for tax year 2025 related to qualified passenger vehicle loan interest reporting.
- If you’re a lender/payor, check the relevant IRS notices and instructions for how 2025 reporting applies.
100% first-year depreciation (Qualified Production Property)
- For many eligible business assets placed in service after Jan 19, 2025, IRS explains you may be able to deduct 100% of cost in the first year (instead of spreading deductions).
- Often relevant for equipment, machinery, certain plants, and other qualifying property.
- IRS indicates taxpayers may rely on existing depreciation rules with updated dates/percentages until final regs.
Planning matters: placing assets in service (not just purchasing) can change the year you qualify.
Other business-related items referenced on the IRS hub
- 1099-K / third-party payment platform thresholds (IRS references proposed regulations and threshold/withholding mechanics on the hub).
- Employee Retention Credit (ERC) limitation (IRS notes limits on certain ERC refunds/credits for late-filed claims and points to FAQs).
Clean energy
Clean vehicle credit expirations (timing matters)
- IRS explains several clean vehicle credits are accelerated to end for vehicles acquired after Sept 30, 2025 (including new, used, and commercial categories).
Home & residential energy credit expirations
- IRS notes accelerated end dates for certain home energy credits—often tied to property placed in service or expenditures after Dec 31, 2025.
If you’re planning upgrades, timing + eligibility rules can decide whether a credit is allowed.
Carbon capture / sequestration guidance
IRS hub references guidance on qualifying, reporting, and safe-harbor methods tied to 2025 activities.
Investment & community development
Rural Opportunity Zones (QOZ) adjustments
- IRS restates Opportunity Zone basics and highlights a rural area definition used for the law.
- IRS describes a reduced substantial improvement threshold (down to 50% for certain rural QOZ property) beginning July 4, 2025.
Tax-exempt entities & charitable giving
The IRS hub includes charitable/tax-exempt guidance links and updates as Treasury/IRS release new notices and FAQs.
- If you run a nonprofit, scholarship organization, or tax-exempt entity, check for updates in the IRS “Resources and guidance” area and talk to a tax professional before adopting new procedures.
IRS resources & guidance (best place for updates)
What to use
- IRS Fact Sheets and FAQs linked from the hub (often the quickest plain-language guidance).
- IRS Notices for official interim rules and transition relief.
- IRS News releases for announcements tied to forms, reporting, and effective dates.
Need help applying it to your return?
YebboTax can help you:
- Check eligibility (income phaseouts, filing status rules, required IDs like SSN/VIN)
- Make sure reporting matches your W-2/1099 statements
- Avoid common filing mistakes that delay refunds
📞 619-255-5530
✉️ info@yebbo.com
FAQ: One, Big, Beautiful Bill Act (OBBB)
Click a question to expand. This FAQ summarizes how the IRS describes major items and common “how do I claim it?” questions.
1) What is the One, Big, Beautiful Bill Act (OBBB)? +
The IRS describes OBBB as a law that significantly affects federal taxes, credits, and deductions. The IRS hub notes it was signed
on July 4, 2025 as Public Law 119-21.
2) Which taxpayers should pay the closest attention? +
If you are (a) age 65+, (b) work in tip-based jobs, (c) earn overtime, (d) financed an eligible vehicle,
(e) use Marketplace health coverage, (f) are a small business buying equipment/assets, or (g) you’re timing clean-energy purchases—
you likely have OBBB-related items to review.
3) Is “No tax on tips” automatic? +
No. The IRS describes it as a deduction for qualified tips for 2025–2028, with eligibility rules (including occupation rules),
caps, and income phaseouts. It generally depends on reported tip information (W-2/1099 or other statements, or direct reporting where applicable).
4) What counts as “qualified tips” per IRS descriptions? +
IRS describes qualified tips as voluntary cash or charged tips received from customers (including shared tips). There are caps and
limitations (for example, self-employed deduction limits and certain SSTB exclusions).
5) How does “No tax on overtime” work? +
IRS describes a deduction for the overtime portion that exceeds your regular rate (for example, the “half” in “time-and-a-half”),
effective 2025–2028, subject to annual caps and income phaseouts. Reporting is tied to W-2/1099 (or other statements) or direct reporting.
6) I’m 65+. What is the senior deduction mentioned by IRS? +
IRS describes an additional $6,000 deduction for eligible individuals age 65+ for 2025–2028 (on top of existing senior standard deduction rules),
with phaseouts above certain modified AGI thresholds. For married couples, it can apply per eligible spouse.
7) Do I have to itemize to benefit from these deductions? +
The IRS indicates several highlighted deductions are available to itemizers and non-itemizers (depending on the specific provision).
The best approach is to compare outcomes in your return.
8) What’s the “No tax on car loan interest” requirement people miss? +
IRS descriptions include vehicle criteria and documentation requirements. For years you claim it, the IRS notes you must include the VIN on your return,
and some eligibility is tied to vehicle characteristics (including final assembly verification methods).
9) What changed with HSAs? +
IRS highlights: (a) telehealth rule allowing certain remote care before meeting the deductible while keeping HSA contribution eligibility (permanent from 2025 plan years),
(b) certain bronze/catastrophic plans treated as HSA-compatible starting 2026, and (c) certain Direct Primary Care arrangements starting 2026.
10) I bought business equipment—what is the 100% first-year depreciation item? +
IRS describes that many eligible business assets placed in service after Jan 19, 2025 may qualify for 100% first-year deduction (instead of multi-year),
subject to the property and eligibility rules. Timing (placed-in-service date) can be crucial.
11) Did clean vehicle or home energy credits change? +
IRS states several clean vehicle credits are not allowed for vehicles acquired after Sept 30, 2025, and certain home/residential energy credits
have accelerated end dates tied to after Dec 31, 2025 thresholds (depending on the credit).
12) Where should I check for the newest IRS guidance? +
Use the IRS OBBB hub’s “Resources and guidance” area—especially fact sheets, FAQs, notices, and news releases linked from the hub.
Those pages are where the IRS posts implementation details and transition relief.
13) Can YebboTax help me apply this correctly? +
Yes. We can review your situation, confirm eligibility (caps/phaseouts), verify documents (W-2/1099/VIN/1095-A),
and prepare your return in line with IRS rules.
Call: 619-255-5530 • Email: info@yebbo.com
Call: 619-255-5530 • Email: info@yebbo.com
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.