The One Big Beautiful Bill Act (OBBBA), passed July 2025, introduces major tax law changes—higher standard deductions, expanded SALT deductions, increased estate & gift tax exemptions, new deductions for seniors, and more. For CPAs preparing for the fall 2025-2026 tax season, these shifts require careful planning, updated research, and client education. Learn how agentic AI, especially Hive Tax’s research & planning tools, can streamline the process, reduce errors, and unlock strategy opportunities.
What is the One Big Beautiful Bill Act (OBBBA)?
Passed by the 119th Congress and signed into law on July 4, 2025, OBBBA (also referenced as H.R.1, P.L. 119-21) makes sweeping changes to tax policy.
Many provisions take effect for tax year 2025 (i.e. returns filed in 2026), with others phased in or temporary.
Key Changes Under OBBBA CPAs Should Prioritize
Here are the most relevant changes that will affect your clients and your planning workflow this fall:
- Increased Standard Deductions
- Singles / Married Filing Separately: ~$15,750
- Head of Household: ~$23,625
- Married Filing Jointly/Surviving Spouse: ~$31,500
- Expanded SALT Deduction (State & Local Taxes)
- Cap raised to $40,000 for itemizers from 2025 through 2029.
- For higher income taxpayers (e.g. MAGI over $500,000), the SALT cap phases down toward $10,000.
- Reverts to the old $10,000 cap after 2029.
- Cap raised to $40,000 for itemizers from 2025 through 2029.
- Estate, Gift, and GST (Generation-Skipping Transfer) Tax Exemptions Increase
- Exemption permanently raised to $15 million per individual, $30 million for married couples, indexed for inflation.
- Exemption permanently raised to $15 million per individual, $30 million for married couples, indexed for inflation.
- New Deduction for Seniors
- For age 65+ taxpayers: an additional $6,000 deduction (per person) in 2025-2028, even if taking the standard deduction, subject to income phase-outs ($75,000 for singles; $150,000 if married filing jointly)
- For age 65+ taxpayers: an additional $6,000 deduction (per person) in 2025-2028, even if taking the standard deduction, subject to income phase-outs ($75,000 for singles; $150,000 if married filing jointly)
- Permanent Extension of Key TCJA Provisions
- Certain individual rate cuts, etc., which were going to expire at end of 2025 under older law, are now made permanent.
- Certain individual rate cuts, etc., which were going to expire at end of 2025 under older law, are now made permanent.
- Other Deductions / Adjustments
- New deductions for overtime and tips.
- Changes to reporting thresholds, charitable deduction rules, etc.
- New deductions for overtime and tips.
- What isn’t changing (for now)
- IRS has confirmed no changes to the individual information returns (W-2, 1099s etc.) or withholding tables for 2025 despite the new law.
- IRS has confirmed no changes to the individual information returns (W-2, 1099s etc.) or withholding tables for 2025 despite the new law.
Implications for CPAs in the Fall Season
- Client outreach & education: Many taxpayers won’t realize how some of these changes (e.g. SALT, standard deduction, senior deductions) affect their liability. Fall is a good time to flag clients with high SALT, seniors, or those in high tax states.
- Revising estimates & withholding: Since withholding tables didn’t change immediately, there may be underwithheld taxes if clients expect the new deductions to fully offset tax burdens. Adjust estimated payments or withholdings proactively.
- Estate & gift planning: With the increased exemption amounts, some clients can accelerate gifting, transfer planning, or revisit trusts with the new higher thresholds.
- Strategic timing: Some deductions are temporary or phase-out soon. For example, the expanded SALT cap and senior deduction expire; clients may want to accelerate deductions or plan certain purchases, charitable giving etc. in the 2025 tax year.
- Compliance risk: New rules for auto loan interest deduction, overtime/tips deduction, etc., will require careful documentation & eligibility checking.
How Hive Tax AI Tools Facilitate Faster, More Accurate Tax Research & Planning
Agentic AI and specialized tools are essential in this rapidly changing tax landscape. Here’s how Hive Tax (HiveTax.ai) can help CPAs this fall:
| Task | How Hive Tax Helps |
| Staying current | Hive AI keeps up with the latest tax laws, court cases, IRS guidance—so you can query “What provisions under OBBBA affect senior taxpayer deductions?” and get up-to-date, well-cited answers. |
| Scenario modelling | You can run “what-if” client scenarios (e.g. SALT cap phases, estate tax planning) quickly to show clients impact of different choices. |
| Reducing research time | Instead of scouring IRS, Congressional Research Service, and state laws manually, Hive AI produces summaries + primary source links. Saves hours. |
| Client deliverables | Generate clear recommendation reports or planning memos leveraging the new OBBBA provisions—senior deduction, deductibility changes, etc.—that clients can understand. |
| Error prevention & compliance | Because many OBBBA provisions are nuanced (phase-outs, sunset clauses, income thresholds), Hive helps ensure you don’t miss critical eligibility or reporting requirements. |
Practical Tips & Action Steps for This Fall
- Audit your client base to identify those who will benefit most from OBBBA changes: seniors, high-SALT states, estates/gift significant clients, pass-through entity owners.
- Update your firm’s planning checklists to include OBBBA-specific line items: e.g. is the client over 65? Are they over the SALT threshold? Do they qualify for senior deduction? etc.
- Review software and tax preparation workflows to ensure new deductions and limits are properly included.
- Use agentic AI tools (Hive Tax or similar) well before busy season to build templates for client memos around OBBBA changes.
- Monitor for IRS or state guidance clarifying ambiguous provisions or implementation issues.
Summary & Call to Action
OBBBA is changing tax law significantly for 2025 onward. As a CPA, knowing these changes now—and planning proactively—can make the difference between helping clients save and being caught off guard. Hive Tax’s AI research & planning tools provide the speed, accuracy, and insight you need to navigate OBBBA’s complexities.
If you haven’t already, now’s the time to integrate tools like Hive tax tool into your workflow. Reach out for a demo → see how you can start using Hive to generate OBBBA-based client strategies this fall, reduce risk, and deliver greater value.