The One Big Beautiful Bill Act (OBBBA) was passed on July 4, 2025, and with tax season right around the corner, you probably have a lot of questions! Below are 20 tax changes we think every small business owner should be aware of.

How to use this list: We are releasing detailed breakdowns for every item on this list over the coming weeks. We have already linked the first two deep-dives below—please check back often as we update the rest of the list with new links!

Click the available links for more information, and contact us if you’d like to hear how we could help your small business succeed this year!

1. No Tax On Tips (Beware: still subject to FICA and state income tax)
2. No Tax on Overtime (Beware: this only applies to the additional 0.5 compensation, not the entire 1.5 OT)
3. Teachers can expense job costs as itemized deductions (Deep dive coming soon)
4. 1099 requirement increases from $600 to $2,000 starting in 2026 (Deep dive coming soon)
5. 1099-K requirement at $20,000 or >200 transactions (Deep dive coming soon)
6. Mortgage Insurance Premiums are deductible again (Deep dive coming soon)
7. Dependent care limit increased from $5,000 to $7,500 starting in 2026 (Deep dive coming soon)
8. SALT limit increased from $10,000 to $40,000 for MFJ (Deep dive coming soon)
9. Standard Deduction increased from $30,000 to $31,500 for MFJ (Deep dive coming soon)
10. Child Tax Credit increased from $2,000 to $2,200 per child (Deep dive coming soon)
11. Auto Loan Interest is deductible up to $10,000 (Deep dive coming soon)
12. New Senior Deduction up to $6,000 per 65+ individual MFJ (Deep dive coming soon)
13. Charitable Deduction floor of 0.5% individuals, 1% corporations (Deep dive coming soon)
14. Gambling losses are limited to 90% of winnings (Thus 10% of winnings are taxable, regardless of whether you lost more than you won) (Deep dive coming soon)
15. Electric Vehicle Credits expire 9/30/25 & Residential Energy Credits expire 12/31/25 (Deep dive coming soon)
16. 100% Bonus Depreciation has been made permanent, with special inclusion for certain manufacturing property (Deep dive coming soon)
17. R&D can be expensed instead of capitalized (Deep dive coming soon)
18. Section 179 depreciation limit increased from $1 million to $2.5 million (Deep dive coming soon)
19. 199A deduction has been made permanent (Deep dive coming soon)
20. Trump accounts will provide one-time $1,000 payments to children born after 1/1/25 (Deep dive coming soon)

Disclaimer: This blog content is for general informational purposes only, should not be considered professional advice, and does not establish a client relationship. Haworth and Company is not liable for the accuracy of this information or the content of external links. Please use this information at your own risk, ensuring it suits your specific needs, and consult with a certified tax professional for your own personalized guidance.