The One Big Beautiful Bill comes with new tax provisions that will immediately affect taxpayers retroactive to the start of this year and beyond.
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Tax expert Matt McKinney, senior director of tax accounting methods and credits at Source Advisors, offers smart moves taxpayers should make to prepare for these coming — and in some cases already active — changes.
1. Update 2026 Tax Estimates
Taxpayers should update their 2026 tax estimates to account for new, permanent deductions under the One Big Beautiful Bill (OBBB) like breaks for tips and overtime pay, a higher limit on state and local tax (SALT) deductions and the return of the 20% small-business deduction, according to McKinney.
“These provisions can meaningfully reduce taxable income, so failing to adjust withholding or estimates could result in overpayments,” he said.
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2. Compare Benefits of Itemizing to the Standard Deduction
With the new $40,000 cap on SALT deductions — now adjusted each year for inflation — higher-income taxpayers in states with steep taxes will be able to write off more of what they pay, McKinney pointed out, which benefits the middle class.
However, once your adjusted gross income (AGI) passes $500,000, those benefits start to phase out. It’s a good idea to compare whether itemizing your deductions under the new limit saves you more than taking the standard deduction, he explained.
3. Small-Business Owners: Claim R&D Expenses
Small-business owners can now count on the 20% qualified business income (QBI) deduction as a permanent tax break, meaning they’ll continue to get that discount on eligible profits, McKinney explained.
The removal of limits on the pass-through entity tax (PTET) deduction also gives more flexibility to reduce state taxes at the business level. Plus, “Small businesses under $31M receipts gain retroactive relief under Section 174, with refund claim opportunities for 2022 and 2023,” McKinney said.
4. Move Fast on Energy Credits
If you’re developing energy-efficient buildings or renewable energy projects, it’s smart to move quickly. “Taxpayers should accelerate qualifying 45L and 179D projects before June 30, 2026,” he said.
Likewise, wind and solar projects need to be up and running by the end of 2027 to qualify for full benefits. Businesses planning new industrial facilities should also time construction carefully, as finishing within the qualifying window could allow them to claim a permanent 100% bonus depreciation on those assets.
5. Determine How You Benefit
In a nutshell, young professionals will benefit most from tip and overtime deductions, small-business owners and innovators will gain from QBI and Section 174 relief, and manufacturers will benefit from bonus depreciation. High earners in high-tax states will see some relief from the SALT cap increase but face reduced benefits once AGI exceeds $500,000.
No matter whether you think you do or don’t benefit from these tax changes, it’s always a good idea to speak with a tax professional before tax time comes calling.
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This article originally appeared on GOBankingRates.com: I’m a Tax Expert: 5 Smart Moves To Prepare For Tax Changes Under Trump’s Big Beautiful Bill
