What the One Big Beautiful Bill Means for Your Taxes in 2025
If you’re keeping an eye on your tax planning for 2025, there’s a major new law you’ll want to know about: the One Big Beautiful Bill Act. Signed into law on July 4, 2025, this legislation carries wide-ranging tax changes that affect both individuals and small businesses.
Here are some of the changes you should know and how they might matter to you.
Larger standard deductions and inflation-adjustments
Starting in 2026 the standard deduction rises significantly. For married couples filing jointly the deduction climbs to $32,200. For single filers and those married filing separately it goes to $16,100. Heads of household will see $24,150. This means many taxpayers who take the standard deduction rather than itemizing may see larger tax-free income.
Business owner provisions and report-threshold changes
If you own a business or work as a contractor or freelancer you’ll want to note that the threshold for reporting payments on certain 1099 forms is increased to $2,000 (up from $600) for payments to non-employees. Also some bonus depreciation and asset write-off rules for business property have been expanded under the law.
Credits and deductions for workers and families
The law introduces or expands certain benefits: for example, new or increased tax credits or deductions for overtime pay or tip income for those earning below certain thresholds. Also the child tax credit and other credits may be enhanced in certain cases.
What this means for you in Southeast Georgia
If you live or operate a business here in Southeast Georgia you’ll want to ask two questions: (1) Are you taking advantage of the larger standard deduction and/or the new or expanded credits? (2) If you run a business, does the change in reporting thresholds or the bonus depreciation rules apply to you? Because getting ahead of these changes now will help you avoid surprises when tax season arrives.
Next-step actions
• Review your 2024 income, deductions and business activity with a tax professional who understands Georgia and federal tax law.
• Check whether you itemize or take the standard deduction. With the new settings it may shift which option is better for you.
• If you’re self-employed or a business owner, review the 1099 reporting threshold, asset purchases and potential depreciation strategy.
• Set aside time to meet with your CPA before year-end so you can take advantage of favorable provisions under the new law rather than reacting once the year ends.
Navigating tax law changes can feel like a chore but having the right information and plan in place makes all the difference. If you’d like help interpreting how the One Big Beautiful Bill impacts you, whether as an individual or a business owner, let’s connect and get your strategy in place early.
https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions