The recently signed One Big Beautiful Bill Act (OBBBA) introduces sweeping tax changes that will impact both individuals and businesses beginning in 2025. From automatic filing extensions for Los Angeles County residents to a temporary increase in State and Local Tax (SALT) deductions, taxpayers need to understand how these updates may affect their 2024 and 2025 tax filings.

Below, we break down the immediate implications of OBBBA and highlight planning opportunities you don’t want to miss.

Key Tax Deadlines to Remember

• September 15, 2025 – Extended deadline for S-Corporation (Form 1120S) and Partnership (Form 1065) returns for 2024 (calendar year filers).
• October 15, 2025 – Extended deadline for Individual (Form 1040), Single-Member LLCs (Form 568), and C-Corporations (Form 1120).

Los Angeles County residents automatically qualify for an extension until October 15, 2025 for both filing and payment obligations. This includes 2024 income tax returns, estimated tax payments, payroll tax deposits, and more.

SALT Deduction Increases Under OBBBA

One of the most impactful provisions of OBBBA is the temporary increase in the State and Local Tax (SALT) deduction cap:

• Raised from $10,000 to $40,000 for tax year 2025.
• Phases out for higher-income taxpayers with MAGI above $500,000 (joint filers/single) or $250,000 (married filing separately).
• By 2030, the cap reverts back to $10,000.

This is a major opportunity for taxpayers in high-tax states like California, New York, New Jersey, and Illinois, who will now have more room to itemize deductions.

Why This Matters for You

• If you qualify for the higher SALT cap, you may be able to reduce your federal withholdings in 2025 and increase your monthly take-home pay.
• Keep careful records of charitable donations and deductible expenses—these will factor into itemized deductions alongside SALT.

Higher Standard Deductions in 2025

If you don’t itemize, OBBBA still benefits you with increased standard deductions:

• Married filing jointly: $31,500 (↑ $2,300 from 2024)
• Single or Married filing separately: $15,750 (↑ $1,150)
• Head of household: $23,625 (↑ $1,725)
• Additional $2,000 if age 65 or older or blind

New Senior Bonus Deduction

Starting in 2025, qualifying seniors (age 65+) can claim a new $6,000 per person deduction ($12,000 for married couples filing jointly). This deduction is available whether you itemize or take the standard deduction, and it phases out at higher income levels.

Other OBBBA Changes Affecting 2025

• Electric Vehicle (EV) Tax Credit repealed after September 30, 2025.
• Residential Energy Credits end December 31, 2025.
• Bonus Depreciation restored to 100% for business property placed in service on or after January 19, 2025.
• Child Tax Credit increases from $2,000 to $2,200 per child for 2025, indexed for inflation starting 2026.
• New deductions for tips and overtime pay – up to $25,000 for qualified tips and up to $12,500 ($25,000 for joint filers) for qualified overtime.

Why Work with TaxPlus

The OBBBA changes create immediate tax planning opportunities, but the rules are complex and subject to income-based limitations. Working with an experienced tax professional ensures you maximize deductions and avoid penalties.

At TaxPlus, our Enrolled Agents help individuals, small businesses, S-Corps, and partnerships:

• File timely and accurately under new IRS rules.
• Strategically plan around the new SALT deduction limits.
• Adjust withholdings for improved cash flow.
• Take advantage of credits, deductions, and new senior tax breaks.

Call TaxPlus Today

Don’t wait until the last minute—September and October deadlines are approaching fast. Our team is available for in-person or virtual tax planning sessions.

Los Angeles Office: Call 310.398.3231 or email Mia@taxplus.com
San Diego Office: Call 858.279.1640 or email Henna@taxplus.com

✔️ Request a customized 2024 tax organizer
✔️ Schedule a tax planning conference
✔️ Get expert help navigating OBBBA provisions

Final Word

The One Big Beautiful Bill Act introduces both challenges and opportunities for taxpayers. Whether you’re filing as an individual, managing an S-Corp, or planning ahead for 2025, now is the time to act.

Call TaxPlus today to take control of your tax planning and make the most of the new law.