04/24/2026
As a Texas Income Tax Professional in Plano, I continue to help clients navigate the sweeping changes from the **One Big Beautiful Bill Act** (Public Law 119-21, signed July 4, 2025). The IRS has compiled a helpful overview of its major tax provisions affecting 2025 returns (filed in 2026) and beyond.
Here are some of the most impactful updates:
**For Individuals & Families**
- New **Trump Accounts** for children: Up to $5,000 annual contributions (employer portion up to $2,500 tax-free to employee). Federal seed funding of $1,000 per eligible child in the pilot program. Funds invested in U.S. stock index funds; available for setup after July 4, 2026.
- **Adoption Credit** enhanced: Up to $5,000 (inflation-adjusted) now refundable for tax years beginning after Dec. 31, 2024.
- Expanded **Health Savings Account (HSA)** access: Telehealth before meeting the deductible, plus new compatibility for bronze/catastrophic plans and direct primary care starting 2026.
**For Workers**
- Above-the-line deductions for qualified tips and overtime pay (capped and phased out at higher incomes).
- Enhanced additional standard deduction for seniors.
**For Businesses**
- Permanent **100% bonus depreciation** for qualified property acquired and placed in service after January 19, 2025.
- Domestic research & experimental expenditures: Immediate deduction or 60-month amortization option.
- Higher threshold for backup withholding on third-party network transactions ($20,000 and 200 transactions).
**Clean Energy Provisions**
- Extension of the **Clean Fuel Production Credit** (ยง45Z) through 2029 with North American feedstock requirements and uniform rates.
- Expiration of certain clean vehicle and home energy credits after September/December 2025.
These changes offer real opportunities โ and some new compliance considerations โ for Texas families, workers, small businesses, and energy producers.
With the April 15 deadline approaching (or October 15 with extension), now is the time to review how these provisions affect your 2025 return.
If you have questions about Trump Accounts, overtime/tip deductions, bonus depreciation, HSA changes, or any other OBBBA provision, drop a c
