With the recent passage of the One Big Beautiful Bill Act (OBBBA), significant tax changes are now in motion. While many of these provisions phase in over several years, there are immediate implications for 2024 and 2025 tax filing that individuals, businesses, and particularly Los Angeles County residents need to know.

Here’s a breakdown of the major updates, including new deadlines, deductions, and credits you should consider for your 2025 tax planning.

Key IRS Filing Deadlines for 2025

➤ S-Corporation and Partnership Filers (Form 1120S & 1065)

• Extended Deadline: September 15, 2025

• Applies to entities that requested a 6-month extension from the original March 15, 2025 due date.

• L.A. County Exception: If your business is based in Los Angeles County, you qualify for an automatic extension through October 15, 2025.

➤ Individual (1040), C-Corp (1120), and Single-Member LLC Filers

• Extended Deadline: October 15, 2025

• This applies only if you filed for a 6-month extension from the April 15, 2025 deadline.

• L.A. County Residents: Automatically extended to October 15, 2025 for both filing and payment – no need to request an extension.

Reminder: Filing extensions do not apply to payment deadlines unless you’re an L.A. County resident under the IRS disaster relief provision.

L.A. County Automatic Extension: Who Qualifies and What’s Covered?

Per recent IRS guidance, Los Angeles County residents and businesses automatically receive an extension to file and pay the following taxes until October 15, 2025:

• 2024 Individual Income Tax (Form 1040)

• C-Corporation Returns (Form 1120)

• Single-Member LLC Filings (Form 568)

• Estimated Tax Payments normally due Jan 15, Apr 15, Jun 16, and Sep 15, 2025

• Payroll and excise tax penalties between Jan 7–22, 2025 will be abated if payments are made by Jan 22

This relief is part of a broader IRS disaster declaration response for Los Angeles County.

Immediate Tax Law Changes Under the OBBBA (Effective 2025)

The OBBBA introduces a wide range of provisions. Here are the top updates affecting individuals and business owners starting in 2025:

✅ Bonus Depreciation Restored to 100%

• Applies to qualifying business property (including certain vehicles) placed in service on or after January 19, 2025.

❌ EV Tax Credit Ends

• New EV credit repealed after September 30, 2025

• Used EV credit continues through June 2026

Residential Energy Credits Expire

• Last available for qualifying expenditures through December 31, 2025

• Existing unused credit carryforwards remain valid

Child Tax Credit Increased

• Raised from $2,000 to $2,200 per child for 2025

• Adjusted for inflation beginning in 2026

SALT Deduction Temporarily Expanded

• Deduction cap raised from $10,000 to $40,000 in 2025

• Phases out gradually for MAGI over $500,000, reverts back to $10,000 by 2030

New Deductions for Qualified Tips and Overtime

• Up to $25,000 deductible in tips

• Up to $12,500 ($25,000 for joint filers) deductible in overtime wages

• Phase-out begins at MAGI of $150,000 ($300,000 joint)

What You Should Do Next

Whether you’re a business owner managing an S-Corp, an individual preparing for the EV credit sunset, or a Los Angeles County taxpayer unsure of your filing responsibilities under the new deadlines, proactive planning is key.

Here’s how TaxPlus can help:

• Determine your eligibility for deductions under OBBBA

• Calculate estimated tax payments to avoid penalties

• Prepare and file your 2024 returns before the upcoming deadlines

• Strategize around new depreciation rules and credit sunsets

️ Schedule a Tax Planning Consultation

Our team is available in person and virtually throughout the summer to support your 2025 tax preparation and planning.

Los Angeles Office
Contact: Mia@taxplus.com
Phone: 310.398.3231

San Diego Office
Contact: Henna@taxplus.com
Phone: 858.279.1640

Returning clients: Ask for your customized 2024 Tax Organizer to get started with confidence.

Stay tuned for more updates as additional OBBBA provisions roll out. TaxPlus is here to make the transition as smooth and strategic as possible.