Trump’s One Big Beautiful Bill Is Now a LAW: Tax Changes SUMMARY

irs update side hustle taxes small business tax credits

The Biggest Tax Bill in Years?

This might be the biggest tax bill in years. And whether you're a server, eBay seller, a small business owner, a parent, or retiree, there's something in it for you.

The President just signed into law what's being called the One Big, Beautiful Bill, and it's packed with sweeping tax changes:

1099K updates
Tax relief on tips and overtime
Bigger deductions for seniors and families
Major breaks for business owners

But behind all the headlines is a massive $3.4 trillion price tag. And what that could mean for our national debt, the dollar, and your financial future may surprise you.

Let’s break it all down: the benefits, the fine print, and the long-term cost.

1099-K Reporting Threshold Reverted

Starting 2025, platforms like PayPal, Venmo, and Cash App will only send you a 1099K if:

You earn over $20,000
Have more than 200 transactions

This brings back the old rule—canceling the IRS’s plan to lower the threshold to $600. If you're a casual seller or side hustler, you're off the hook.

Tips and Overtime Income Now Deductible

Tips: If you earn tips (servers, hairstylists, rideshare drivers), you can deduct up to $25,000 of tip income annually from 2025 through 2028.

You still report your full income, but get to subtract the tip deduction before taxes.

Overtime: For overtime, you can deduct up to $12,500 per year in overtime pay (hours worked beyond 40 per week) from 2025 through 2028.

Again, it’s not an exclusion, it’s a deduction.

Seniors Get a Bigger Standard Deduction

If you’re 65 or older, you’ll get an extra $6,000 added to your standard deduction starting in 2025 (through 2028).

This phases out for incomes over $75,000 (single) or $150,000 (joint).

Originally there was talk of making Social Security tax-free. Instead, this deduction increases the percentage of beneficiaries who pay no tax on their benefits—from 64% to 88%.

Deduct Car Loan Interest—With a Catch

Starting 2025, you can deduct up to $10,000 per year in car loan interest, but:

Your car must be assembled in the U.S.
Your income must be under $100,000 (single) or $200,000 (joint)
Leases don’t qualify

SALT Cap Increased

The cap on state and local tax deductions (SALT) jumps from $10,000 to $40,000 for incomes under $500,000.

This starts in 2025 and phases down by 2029 unless extended.

Child Tax Credit Boosted

The child tax credit increases from $2,000 to $2,200 per child—and this change is permanent.

Gambling Loss Deduction Reduced

You can now deduct only 90% of your gambling losses, not 100%.

If you win $10,000 and lose $10,000, you’ll only get to deduct $9,000 in losses.

Charitable Giving Deduction Returns

Even if you don’t itemize, starting in 2026, you can deduct:

$1,000 (single)
$2,000 (married filing jointly)

This new charity deduction is permanent.

Summary of Key Tax Breaks

1099K threshold back to $20,000 and 200 transactions
$25,000 in deductible tips
$12,500 in deductible overtime
$6,000 standard deduction boost for seniors
$10,000 car loan interest deduction
SALT cap increase to $40,000
Child tax credit up to $2,200
Reduced gambling loss deduction
New charitable giving deduction

Big Business Breaks

Bonus Depreciation: Businesses can deduct 100% of equipment and property improvements in the year purchased instead of spreading it out over years.

This includes:

Vehicles
Computers
Tools
Machinery
Fixtures
Office furniture

QBI Deduction: The Qualified Business Income (QBI) Deduction is back. It lets S Corps, partnerships, and sole proprietors deduct up to 20% of net business income.

Not everyone qualifies—service businesses may face income limits.

But if you're under the threshold or non-service-based, this could save you thousands.

But What About the Cost?

Here’s the part few are talking about: $3.4 trillion over 10 years.

That’s money the government doesn’t have. And with spending still rising, this adds fuel to an already burning fire.

The national debt could hit $55 trillion by 2034
That weakens the dollar
Weak dollar = more inflation
Inflation = higher cost of living

This is why more people are turning to gold, silver, and Bitcoin.

Final Thoughts

Yes, this bill offers a lot:

Tax relief
Bigger deductions
Help for small business owners and families

But without real spending cuts, it could accelerate debt and inflation.

That’s the part not making headlines.

What do you think?

Do these tax breaks help you? Or are you concerned about the long-term cost?

Let us know in the comments on the YouTube video. And if you found this helpful, share it with someone who needs to know what’s really in the bill.

Thanks for reading—and stay informed.

About The Author

Noel Lorenzana is an Illinois-licensed, Registered Certified Public Accountant with over 20 plus years of experience.

Through his online educational content, YouTube videos, easy-to-understand courses and 1-on-1 consulting, he gives you the tools to become tax savvy for yourself.

Disclaimer: Any accounting, business or tax advice contained in this article, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties.