Congress has passed a major new tax bill packed with opportunities for taxpayers to save money. Whether you’re a homeowner, a small business owner, or someone just trying to keep more of your paycheck, the changes in this legislation could put significant dollars back in your pocket.

Here are five key tax savings in the new tax bill and how they might help reduce your tax bill for 2025 and beyond.

1. Mortgage Interest Deduction Still Alive and Well

Great news for homeowners: the mortgage interest deduction remains intact under the new bill. If you own your home, you can continue to deduct interest on mortgage debt up to $750,000 for your primary residence.

But there’s more good news:

• Mortgage insurance premiums can also be deducted, which can save homeowners hundreds or even thousands of dollars each year.

• The deduction applies whether your mortgage is old or new, as long as it meets IRS guidelines.

This deduction helps lower your taxable income, making home ownership more affordable and attractive for many families.

2. Bonus Depreciation Returns in a Big Way

One of the most significant tax benefits for business owners and investors is the return of 100% bonus depreciation for certain assets. Under the new tax law:

• Vehicles over 6,000 pounds gross vehicle weight (like large SUVs and trucks) can be written off in full in the first year, offering big deductions for business owners.

• Aircraft purchases used for business can qualify for immediate expensing.

• Certain real estate improvements—such as roofs, HVAC systems, and security systems—can also be fully depreciated in the first year.

This provision allows businesses to reduce taxable income quickly, improving cash flow and encouraging investment in new assets.

3. Higher Standard Deduction Means More Tax-Free Income

The new tax bill brings a sizable boost to the standard deduction, giving taxpayers more income shielded from taxation. The updated standard deduction amounts for 2025 are:

• $15,750 for single filers

• $23,625 for heads of household

• $31,500 for married couples filing jointly

This increase means more people will benefit without having to itemize deductions, simplifying tax filing and potentially lowering overall tax bills.

4. 20% Small Business Deduction for Pass-Through Entities

Small business owners have reason to celebrate. The new law continues the 20% Qualified Business Income (QBI) deduction for eligible pass-through entities like:

• S Corporations (S Corps)

• Partnerships

• Sole proprietorships

• LLCs taxed as pass-throughs

This deduction allows business owners to exclude up to 20% of their qualified business income from taxation, significantly reducing the tax burden on small businesses and entrepreneurs.

5. Higher 1099 Threshold: Less Paperwork for Gig Workers and Small Businesses

The new tax bill raises the reporting threshold for Form 1099:

• Old threshold: $600

• New threshold: $2,000

This change means businesses and platforms like Venmo, PayPal, and freelance marketplaces won’t have to issue 1099 forms for smaller transactions under $2,000. For gig workers, freelancers, and small business owners, this reduces paperwork and reporting hassles—though it’s still crucial to track all income for tax purposes.

Why This New Tax Bill Matters

These five provisions offer real, practical savings for taxpayers and business owners alike. Whether you’re buying a home, investing in your business, or simply filing your tax return, understanding these new rules can help you keep more money in your pocket.

Bottom line: Talk to a tax professional to see how these changes apply to your specific situation and make sure you’re getting every dollar of tax savings you deserve.

Get your business ready and stocked, apply for Office garner Net 30 account today!

Tags: new tax bill 2025, mortgage interest deduction, bonus depreciation, standard deduction increase, small business tax deduction, 1099 reporting threshold, tax savings, personal finance, business taxes