For many years, personal vehicle loan interest has not been deductible for most taxpayers. The One Big Beautiful Bill changes that for certain taxpayers beginning in 2025.

What’s Changing?

The new law creates a deduction for qualifying vehicle loan interest.

Eligible taxpayers may be able to deduct up to $10,000 of qualifying interest paid on eligible vehicle loans.

Important Restrictions Apply

Before you assume your car loan qualifies, there are several requirements to review.

Factors that may affect eligibility include:

• Income limitations
• Type of vehicle purchased
• Date of purchase
• Loan structure
• Ownership requirements

Leased vehicles generally do not qualify for this deduction.

What Should Taxpayers Do?

If you are considering purchasing a vehicle, it may be beneficial to discuss timing and financing options with your tax advisor.

Tax considerations should never be the sole reason for purchasing a vehicle, but understanding available deductions can help you make more informed financial decisions.

A Word of Caution

Whenever Congress introduces a new tax deduction, misinformation quickly follows.

Many taxpayers will hear “car loan interest is deductible again” without understanding the specific requirements.

Before making any major financial decisions based on social media posts or headlines, consult with a qualified tax professional.

At TNT Accounting Services, we help clients understand how tax law changes affect their individual situations so they can make informed decisions.

One provision receiving significant attention under the One Big Beautiful Bill is a new tax deduction available to many seniors.

While some headlines suggested that Social Security benefits would no longer be taxed, that is not exactly what happened. Instead, Congress created an additional deduction for qualifying taxpayers age 65 and older.

Who May Qualify?

Eligible taxpayers may qualify for an additional deduction of up to $6,000 per person.

Like many tax provisions, income limitations apply. Higher-income taxpayers may see the deduction reduced or eliminated through phaseouts.

What Does This Mean for Retirees?

For many retirees, this deduction could reduce taxable income and lower overall federal tax liability.

The impact will vary based on:

• Filing status
• Total household income
• Sources of retirement income
• Social Security benefits
• Pension distributions
• IRA and retirement account withdrawals

Why Planning Matters

Many retirees assume there is little tax planning available after retirement. In reality, retirement often creates unique opportunities to manage taxable income.

Taxpayers may benefit from coordinating retirement account withdrawals, Roth conversions, charitable giving, and other planning strategies.

Next Steps

If you are approaching retirement or currently retired, this may be an excellent time to review your tax situation.

Our office can help determine whether you qualify and identify additional strategies that may reduce your tax burden.

The One Big Beautiful Bill (OBBB) contains numerous tax provisions that could impact small business owners for years to come. While much of the media attention has focused on individual tax breaks, business owners should pay close attention to several key provisions that may create significant tax-saving opportunities.

100% Bonus Depreciation Returns

One of the most notable changes is the return of 100% bonus depreciation. This allows businesses to immediately deduct the full cost of qualifying equipment, furniture, computers, and certain business assets rather than depreciating them over several years.

For business owners planning major purchases, timing may become an important tax-planning strategy.

Qualified Business Income Deduction Remains Available

The Qualified Business Income (QBI) deduction continues to provide substantial tax savings for many owners of S corporations, partnerships, and sole proprietorships.

The deduction may allow eligible business owners to deduct up to 20% of qualified business income, reducing their overall tax burden.

Estate Planning Opportunities

The federal estate and gift tax exemption is scheduled to increase significantly. While many small business owners may not currently be affected by estate taxes, successful business owners should review succession plans and ownership structures.

Tax Planning Is More Important Than Ever

Many of these provisions include income limitations, phaseouts, and complex qualification requirements. Waiting until tax season to discuss these changes may result in missed opportunities.

At TNT Accounting Services, we help service-based business owners proactively plan for taxes rather than simply reacting at filing time.

If you own a business and would like to understand how these changes may impact you, schedule a tax planning consultation today.

The One Big Beautiful Bill (OBBB) introduces several tax changes that could impact millions of taxpayers beginning with the 2025 tax year. While the legislation contains hundreds of provisions, these are the ten changes most likely to affect individuals, families, retirees, and business owners.

1. Child Tax Credit Expansion

The Child Tax Credit has been increased and indexed for inflation. Families with qualifying children may see additional tax savings depending on their income and filing status.

2. Deduction for Tip Income

Certain taxpayers who receive tip income may qualify for a new deduction. This provision is intended to provide tax relief for workers in industries where tips represent a significant portion of compensation.

3. Deduction for Overtime Pay

A new deduction is available for qualifying overtime compensation. Employees who regularly work overtime should review their eligibility and maintain accurate records.

4. Additional Deduction for Seniors

Taxpayers meeting age requirements may qualify for an additional deduction designed to reduce taxable income during retirement years.

5. Vehicle Loan Interest Deduction

For the first time in many years, some taxpayers may be able to deduct interest paid on qualifying vehicle loans, subject to limitations and income thresholds.

6. SALT Deduction Changes

The State and Local Tax (SALT) deduction limitation has been modified, potentially allowing higher deductions for certain taxpayers.

7. Business Owner Tax Benefits

Business owners may benefit from changes affecting the Qualified Business Income (QBI) deduction and other business tax provisions.

8. 100% Bonus Depreciation Returns

Businesses may once again be able to immediately expense qualifying assets through 100% bonus depreciation, creating significant planning opportunities.

9. Estate Tax Exemption Increase

The federal estate and gift tax exemption has increased, creating new planning opportunities for high-net-worth individuals and family business owners.

10. Energy Credit Changes

Several clean-energy incentives are being modified or phased out. Taxpayers considering qualifying projects should evaluate timing carefully.

What Should You Do Next?

The OBBB creates both opportunities and challenges. Because many provisions contain income limitations, phase-outs, and qualification requirements, individualized tax planning is more important than ever.

At TNT Accounting Services, LLC, we are helping clients evaluate how these changes may affect their tax situation and identify opportunities to reduce future tax liability.

If you would like assistance developing a proactive tax strategy, contact our office to schedule a consultation.

Your accountant, financial advisor, and attorney all affect your taxes. If they don’t communicate, strategies can conflict—or important opportunities get missed.

For example:

• An investment move may increase taxes
  
  
• A legal change may affect deductions
  
  
• A business decision may change your tax bracket
  

When no one connects the dots, you pay the price.

What to do instead:
At least once a year, make sure your advisors understand your full picture. When everyone is aligned, your tax strategy becomes stronger, clearer, and more profitable.

Taxes don’t exist in a vacuum—and your planning shouldn’t either.

A big refund feels good—but it usually means you overpaid all year.

That money could have:

• Paid business expenses
  
  
• Covered taxes gradually
  
  
• Earned interest
  
  
• Reduced stress
  

Instead, you gave the government an interest-free loan.

What to do instead:
Review your withholding and estimates every year. The goal is to come close to even—or owe a small amount—not to wait for a big check.

Your money should work for you all year, not sit with the IRS.

If you’re self-employed or own a business, no one is withholding taxes for you. That means quarterly estimated payments matter.

Miss them and you may face:

• Penalties
  
  
• Interest
  
  
• Stress at filing time
  
  

Even if you pay everything by April, the IRS can still penalize you for not paying during the year.

What to do instead:
Plan for taxes monthly. Set aside money every month so quarterly payments don’t feel painful. Mark the deadlines and treat them like any other business bill.

Good cash flow planning makes taxes predictable—not scary.

If you’re earning six figures and not using tax-advantaged accounts, you’re probably paying more tax than you need to.

Accounts like:

• SEP IRAs

   

• Solo 401(k)s

   

• HSAs

   

can reduce your taxable income while building long-term wealth. Yet many business owners either don’t use them or don’t use them well.

What to do instead:
Look at your income, goals, and timeline. Build a mix of tax-deferred and tax-free accounts. This gives you flexibility now and in retirement.

Smart retirement planning isn’t just about the future—it’s one of the best tax tools you have today.

Messy books don’t just look bad—they cost you real money.

When your records are incomplete or disorganized:

• Deductions get missed
  
  
• Estimates are inaccurate
  
  
• Cash flow decisions are risky
  
  
• IRS letters become more likely
  

Many business owners rely on memory, bank statements, or piles of receipts. That might work for a while, but it breaks down as income grows.

What to do instead:
Create one consistent system and stick to it all year. Whether it’s accounting software, spreadsheets, or folders, the key is consistency. Every dollar in and out should have a place.

Clean books give you clarity. And clarity saves you money.