The One Big Beautiful Bill introduces new tax provisions affecting taxpayers retroactively from the start of the year. Tax expert Matt McKinney advises taxpayers to prepare for these changes by updating their 2026 tax estimates to include new deductions like breaks for tips, overtime pay, and higher SALT deduction limits.

With a $40,000 cap on SALT deductions, higher-income taxpayers in high-tax states can now write off more, benefiting the middle class. However, benefits phase out for AGI over $500,000. Small business owners can enjoy the 20% QBI deduction permanently, with more flexibility in reducing state taxes.

Taxpayers involved in energy-efficient or renewable energy projects should expedite 45L and 179D projects before June 30, 2026. Wind and solar projects need to be completed by the end of 2027 for full benefits. Timing construction of industrial facilities carefully can also yield a permanent 100% bonus depreciation on assets.

Read more at Yahoo Finance: 5 Smart Moves To Prepare For Tax Changes Under Trump’s Big Beautiful Bill