We are incorporating changes from the One Big Beautiful Bill Act into the Drake Tax Planner to help you evaluate the impact on your clients’ 2025 returns.

The following updates were made to the Drake Tax Planner on July 17, 2025:

• Bonus Depreciation: Now 100% for assets placed in service after January 19, 2025.

• Section 179 Expense Limit: Increased to $2,500,000, with phase-out beginning at $4,000,000.

• Standard Deduction:

  • Married Filing Jointly (MFJ): $31,500

  • Head of Household (HOH): $23,625

  • Single or Married Filing Separately (MFS): $15,750

• Child Tax Credit (CTC): Updated to $2,200.

• SALT Limitation: Increased to $40,000 (reduced by 30% of the amount by which the taxpayer’s AGI exceeds $500,000).

• Additional Deduction for Age 65+: $6,000.

• Additional Depreciation Elections: A check box For assets placed in service after January 19, 2025, apply the transition rules was added to screen 10.

  Tip  This check box was also added for returns that are not in the Tax Planning scenario to allow fiscal year filers to apply the transition rules, as needed.

Upcoming Changes

In the coming weeks, you will be able to make adjustments for the following below-the-line deductions (ETA: July 30, 2025).

• No tax on tips

• No tax on overtime

• New car loan interest deduction

• Charitable Contributions by taxpayers who do not itemize

In the meantime, you can use screen A to approximate the effect of these changes on the return.

For detailed information about using the Drake Tax Planner, see The Drake Tax Planner.