OBBBA Considerations for 2025 Tax Returns

Anthony Sandomierski |

7 Tax Filling Tips to Prepare for the OBBBA Changes This Tax Season

From The Tax Team at Oujo Wealth Strategies 

With the passage of the OBBBA (One Big Beautiful Bill Act), this upcoming tax season will look different in several key areas. While many provisions create new planning opportunities, others introduce complexity that could impact your filing, estimated payments, and long-term tax strategy.

Below are seven important tax filing tips our tax team is discussing with our tax clients now to help ensure a smooth and optimized filing season.

1. Review Changes to Marginal Tax Brackets

The OBBBA modifies individual income tax brackets and income thresholds. Even small adjustments can:

  • Change your marginal tax rate
  • Impact capital gain exposure
  • Affect Medicare IRMAA surcharges
  • Influence Roth conversion decisions

Action Step: Don’t assume last year’s withholding or estimated payments are still appropriate. A mid-year projection can prevent underpayment penalties or over-withholding.

What We Are Doing For Clients:

  • We’re doing marginal income tax rate planning
  • Limiting taxable gains in investment accounts to lower capital gains tax and net investment tax
  • Keeping clients in low IRMAA brackets if possible so they don’t see a spike in the Medicare premiums in the future
  • Evaluating Roth conversion opportunities
    • The big factor here is making sure the client has ample liquid assets outside of pre-tax or Roth buckets to cover the income tax they would incur

2. Reevaluate SALT Deduction Limitations

The OBBBA adjusts the State and Local Tax (SALT) deduction cap and may phase it differently at higher income levels.

For high-income households, this could significantly change:

  • The benefit of pass-through entity (PTE) elections
  • State tax planning strategies
  • The value of accelerating or deferring property tax payments

What We Are Doing For Clients:

  • Making sure our clients with pass-through entities in high tax states have PTEs in place to make the most of state income tax deductions at the federal level
    • This could potentially save thousands
  • Evaluating whether clients should accelerate property tax or state income tax payments to take advantage of the higher SALT caps
    • This only benefits a subset of taxpayers

3. Understand the New Qualified Business Income (QBI) Adjustments

The QBI deduction rules have been modified under OBBBA, including changes to:

  • Income thresholds
  • Phase-outs for specified service trades or businesses (SSTBs)
  • Wage and capital limitations

For business owners, this could materially impact effective tax rates.

We’re preparing analyses on how to take advantage of this deduction for clients it impacts.

4. Watch for Changes to Bonus Depreciation & Section 179

The OBBBA revises depreciation rules, including adjustments to:

  • Bonus depreciation percentages
  • Section 179 expensing limits
  • Phase-out thresholds

If you’re planning equipment purchases, real estate improvements, or business expansion, the timing of purchases could significantly impact your 2026 tax return.

What We Are Doing For Clients:

  • We’re coordinating major capital expenditures to see where they get the most tax benefit

5. Review Estate & Gift Tax Exemption Levels

The OBBBA modifies federal estate and gift exemption amounts and future sunset provisions.

For high-net-worth families, this may:

  • Accelerate gifting strategies
  • Consider funding permanent life insurance policies through a life insurance trust to cover potential estate taxes
  • Impact portability planning for married couples

What We’re Doing For Clients:

  • This is a BIG opportunity for high net worth households close to the federal estate tax exemption
    • $15 Mil for Single, $30 Mil for Couples
  • We are evaluating the following:
    • Gifting strategies
    • Business ownership interests
    • Roth conversions
    • Holding appreciated positions to death for step up in tax basis
    • Option strategies for concentrated positions
    • Permanent life insurances policies owned by a life insurance trust to pay potential estate taxes
    • And much more

6. Be Mindful of Changes to Energy & Credit Incentives

Several credits and incentives have been expanded, phased out, or restructured under the new legislation, including:

  • Clean energy credits
  • EV credits
  • Business energy investment credits

The qualification rules and documentation requirements may be stricter this year.

Action Step: See if you are eligible for any of these credits and be mindful of which ones expired

7. Adjust Estimated Tax Payments for 2026

Because OBBBA changes may impact both deductions and income thresholds, many taxpayers could find themselves under-withheld.

High-income earners, business owners, and retirees with investment income are especially vulnerable to penalties if adjustments are not made early.

What We Are Doing For Clients:

  • Running a proactive tax projection before year-end to determine whether estimated payments/tax withholding need adjustment

Final Thoughts

Major tax legislation always creates both opportunity and risk. The OBBBA is no exception.

The key takeaway: this is not a “business as usual” filing season. Even if your income and investments haven’t changed significantly, the tax code has.

Our tax team is proactively reviewing client situations this tax season to:

  • Identify planning opportunities
  • Prevent costly filing surprises
  • Coordinate tax strategy with broader wealth planning

Schedule a 15-minute consultation with one of our wealth advisors to see how we integrate tax planning in our wealth management process.

Cetera Wealth Services, LLC exclusively provides investment products and services through its representatives. Although Cetera does not provide tax or legal advice, or supervise tax, accounting or legal services, Cetera representatives may offer these services through their independent outside business. This information is not intended as tax or legal advice.