Understanding the One Big Beautiful Bill Act (OBBBA):

 The One Big Beautiful Bill Act (OBBBA) is the most sweeping tax reform in recent years. Many of its provisions are already in effect for the 2025 tax year, and others will roll out in 2026 and beyond. At BELNAVIS, LLC, we want our clients to be prepared — not surprised. Below we break down the most important changes for individuals and families. 

•  The standard deduction is permanently increased 

 - $15,750 for single filers

 - $23625 for Head of Household

 - $31,500 for Married Filing Jointly

• Personal exemptions are permanently eliminated. 

More taxpayers will benefit from the standard deduction, but it’s critical to check whether itemizing still saves you more. BELNAVIS will calculate both to ensure you don’t leave money on the table.

•  Child Tax Credit (CTC): Raised to $2,200 per child, with $1,700 refundable.
• Other Dependent Credit: $500 continues for dependents age 17+ and others who qualify. 
• Adoption Tax Credit: Up to $17,280 in 2025, including a $5,000 refundable portion (for the first time.
•  Youth Empowerment Account: The federal government funds $1,000 into a “Trump account” for all U.S. citizens born in 2025, 2026, 2027, and 2028. 

Families may see larger refunds. Working with a tax advisor ensures you claim every dollar you’re entitled to.

•  No Tax on Tips: Deduct up to $25,000 in tip income (per return).  $0 for MFS
• No Tax on Overtime: Deduct up to $12,500 per person ($25,000 MFJ).  $0 for MFS
• Senior Deduction: Additional $6,000 per eligible taxpayer age 65+.  $0 if MFS

These “below-the-line” deductions can lower taxable income even if you already take the standard deduction. BELNAVIS will guide you in documenting and maximizing these opportunities.

•   Introduces a deduction for interest on car loans for new vehicles assembled in the U.S., capped at $10,000 per year.
• Debt on the vehicle acquired after December 31, 2024
• Phases out for individuals making over $100,000 or couples making over $200,000.

•  Cap increased to $40,000 per return (2025–2029). 
• Phases out for incomes above $500,000 ($250,000 MFJ). 
• Returns to $10,000 maximum deduction in 2030.
   

High-income earners in states with significant property or income taxes need to carefully plan for the phase-out effect, which can raise effective tax rates.

•  529 Plans: Expanded to cover more K–12 costs (limit doubled to $20,000) and certain credentialing expenses. 
• ABLE Accounts: Higher contribution limits, permanent Saver’s Credit enhancements, and rollover flexibility. 
• Youth Empowerment “Trump Accounts”: New tax-favored savings account with a $1,000 federal contribution for children born 2025–2028. Families can contribute up to $5,000 annually starting in 2026.
   

 These tools can help families save more for education and long-term financial security — with tax advantages along the way.

•  HSA Access Expanded: More Affordable Care Act plans now qualify as high-deductible health plans (HDHPs). 
• Dependent Care Benefits: Employer-provided FSAs increase to $7,500 in 2026. Credits for dependent care also expand. 
• Student Loan Forgiveness: Discharged loans due to death or disability remain permanently tax-free.

 Families with healthcare and dependent care costs can benefit from new pre-tax strategies to reduce taxable income.

•  For Non-Itemizers (2026+): Deduction of up to $1,000 (Single) / $2,000 (MFJ) for cash donations. 
• For Itemizers: New 0.5% AGI floor before charitable contributions are deductible.

Giving strategies may need to change. BELNAVIS can help you structure donations for maximum tax efficiency.

•  Casualty Losses: Deduction expanded to include certain state-declared disasters. 
• Alternative Minimum Tax (AMT): Higher exemptions, but steeper phase-out rates that can create a “stealth tax” for some households. 
• Miscellaneous Itemized Deductions: Permanently eliminated (except educator expenses with new limits).

  The OBBBA creates both opportunities and challenges. Some provisions are permanent, others expire by 2028, and a few don’t start until 2026–2027. Proactive planning is the only way to capture the benefits before they disappear.   

We specialize in turning tax law changes into strategies that save you money, grow your wealth, and create financial abundance.

Schedule a 2025 OBBBA Tax Review with BELNAVIS to:

• Identify deductions & credits you qualify for.
• Project your 2025 and 2026 returns under the new law. 
• Build a multi-year plan to capture temporary opportunities.

Call us today (404) 880-1628 or schedule an appointment