The One Big Beautiful Bill was a significant piece of tax legislation passed in 2025. Now that we’re approaching tax filing season for 2025, let’s take a look at how these new policies affect self-employed individuals like content creators and other freelancing creatives.
One Big Beautiful Bill Act (OBBBA) Changes
The One Big Beautiful Bill Act (OBBBA) was certainly a hot topic back when America was heading into its July 4th celebration of 2025 – which was already half a year ago! It passed with a narrow majority and provided sweeping tax overhaul. Here are the key changes of OBBBA:
- Increased standard deductions and child tax credit
- No tax on tips & no tax on overtime pay deductions
- Higher State And Local Tax deductions (SALT): up to $40,000 vs. $10,000 cap in prior year
- Enhanced deductions for seniors (65+)
- Brand new car loan interest deduction
- No more clean vehicle tax credit after Sep 30, 2025
For businesses, here are a few key changes:
- QBI is made permanent and enhanced
- 100% bonus depreciation is brought back and made permanent
- Section 179 expensing limits are increased
=> This helps small creators & businesses upgrade equipment and deduct it immediately
- R&D costs can be fully expensed in the year incurred
- Higher reporting threshold for 1099(s) so third-party & independent contractor payments are adjusted upward
=> Fewer small-payment reporting hassles for creators and gig-workers