Joel Barlow, founder of Barlow Wealth Advisory Group, explains what the bill does — and how you can make the most of it.
What is the One Big Beautiful Bill?
Passed in July 2025, it’s the largest tax overhaul in years. It makes permanent the lower tax rates from 2017 and introduces new deductions and clients.
What are the biggest changes for working families?
- Overtime Deduction: You can deduct part of your overtime pay (up to $12,500 for singles, $25,000 for couples, 2025–2028).
- Child Tax Credit: Temporarily raised to $2,500 per child through 2028.
- SALT Deduction Relief: The cap has been increased from $10,000 to $40,000 for certain taxpayers.
What are the biggest changes for small business owners, estates, and high-income taxpayers?
- SALT Deduction Relief cap increased from $10,000 to $40,000 for some taxpayers.
- 20% QBI deduction is permanent, with phase-out amounts increased.
- Base capital gains tax rates remain the same.
- Opportunity Zone program becomes permanent with a rolling 10-year basis starting in 2026, which can assist with deferring capital gains in certain circumstances.
- Unified Lifetime exemption increases to $15 million(approximately $30 million fora married couple) with inflation indexing going forward.
- 100% bonus depreciation for qualifying business assets is now permanent with a high phase-out threshold of $4 million indexed for inflation.
How about seniors?
There is a new $6,000 deduction per senior taxpayer aged 65 or older ($6,000 per taxpayer >64). It helps retirees on fixed incomes but phases out at higher incomes.
Any new deductions I might not expect?
Yes. If you finance a new, U.S. assembled vehicle, interest on that loan may be deductible (up to a maximum of $10,000 through 2028). That’s in addition to the overtime and senior deductions.
Sounds great — what’s the catch?
Many deductions phase out once income crosses certain thresholds.
- Some provisions are temporary and disappear after 2028.
- The law adds new complexities, like a remittance excise tax starting in 2026.
How can a tax professional help?
By planning ahead, you can:
- Try to keep your income at or under significant deduction limits.
- Decide whether to itemize or take the standard deduction.
- Time purchases (like a vehicle) for potential tax savings.
- Potentially avoid costly mistakes that could reduce your refund.
What should I do right now?
- Review your 2025 income projections.
- Track overtime, childcare, and vehicle expenses carefully.
- Schedule a tax planning consultation before year-end (tax planning must occur before January 1).
What’s the bottom line?
The bill is full of opportunities — but only if you know how to claim them. Without professional guidance, you could leave thousands on the table.
Contact Barlow Wealth Advisory Group today to learn more about how this “beautiful bill” can work beautifully for you.
