Hello Valued Clients,
Smart tax planning often pays for itself—and then some. With the new One Big Beautiful Bill Act now law, there are fresh opportunities to reduce your tax bill—some effective this year, others starting in 2026. Taking action now helps you capture these benefits before they’re missed.
A Few Highlights from the New Law
- Makes permanent or extends the TCJA individual rate cuts – these were set to expire at the end of 2025
- Overtime & tip income deductions – up to $25,000 (with income phase-outs)
- Expands the Standard Deduction
- Expands the Child Tax Credit – increases the max credit to $2,200 for 2025
- Auto loan interest deduction – for new qualified personal vehicles, up to $10,000 (with income phase-outs)
- SALT deduction cap – increased from $10,000 to $40,000
- 529 plans – expanded to cover more qualified expenses, including K–12 costs
- Additional deduction for seniors – $6,000 for single filers and $12,000 for married filing jointly (with income phase-outs)
- Business benefits – increased bonus depreciation, higher Section 179 limits, and enhanced R&D deductions
- Estate tax exemption – permanently extended at higher levels (was set to expire after 2025)
- Charitable deductions for non-itemizers – up to $1,000 for single filers and $2,000 for married filing jointly (starting in 2026)
- …and more
Tax planning is valuable whether you’re facing changes or just want a clearer picture of your taxes. Starting early—rather than waiting until tax season—gives you more options and time to plan thoughtfully.
Our tax planning services help you:
- Identify which provisions apply now vs. later
- Time income or expenses to maximize deductions and credits
- Avoid missing opportunities that could lower your taxes
One example: Did you know, beyond the new law’s 529 plan updates, the SECURE 2.0 Act allows up to $35,000 of unused 529 funds to roll into a Roth IRA—turning education savings into retirement savings. [Learn more here: https://www.thetaxadviser.com/issues/2024/jul/a-retirement-savings-head-start-529-to-roth-rollovers/]
Have questions about how these updates—or any other current tax laws—may affect you? Our admin team can help set up a time to review your plan—just reach out at [email protected] or 701-356-7867.
P.S. A little planning now could be one of the smartest money moves you make this year. With extended tax deadlines approaching this fall and year-end fast approaching, it’s the perfect time to review your situation and ensure you’re positioned to capture every opportunity.
Wishing you a wonderful fall filled with family, friends, and a strong finish to the year.
Sincerely,
Busek Olson & Associates | Taxman | West Fargo Tax & Accounting
Billing Disclosure: Questions, consultations, emails, and phone calls that require review, analysis, or guidance are considered consulting services and may be billed in accordance with our billing policy. Our team determines whether a service meets this standard. Please note that all services provided outside of your engagement are billable at our current standard rates unless otherwise agreed upon in advance.