Toro Taxes

Do you know what The One Big Beautiful Bill is? Toro Taxes explains what it is and how it influences the Latino community.

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In July 2025, Congress passed The One Big Beautiful Bill Act (H.R. 1), one of the most important tax reforms since 2017. While many provisions take effect in 2025 and will be reflected in 2026 tax returns, the impact is already underway. 

What’s changing for our families and businesses? 

  • Individual tax rate: Seven brackets (10% to 37%) are made permanent with inflation adjustments, preventing an automatic increase in 2026. 
  • Increase in the standard deduction: Higher amounts reduce taxable income, for example, $31,500 for married couples. 
  • New deduction for older adults: An additional $6,000 for individuals over 65 with moderate income. 
  • Child Tax Credit: Increases to $2,200 per child but requires both the parent and the child to have a valid SSN. This is crucial for families where one or both parents have an ITIN: they won’t be able to claim this credit even if their children have SSNs. 
  • Alternative Minimum Tax (AMT):  More people will be exempt due to higher exemption thresholds. 
  • SALT limit: Temporarily increased to $40,000 in 2025, reverting back in 2029. 

 

New temporary deductions (2025–2028): 

  • Up to $25,000 for income from tips. 
  • Up to $25,000 for overtime pay. 
  • Up to $10,000 for interest on loans for vehicles assembled in the U.S. 
  • Elimination of minor itemized deductions: Expenses like tax prep or investment costs will no longer be deductible.  
  • Gambling: Loss deductions limited to 90% of winnings. 
  • Charitable contributions: Up to $2,000 can be deducted without itemizing. 

Now is the time to get ready. These changes affect you—especially if you’re self-employed, a parent with young children, a senior, or a small business owner. 

At Toro Taxes, we’re ready to help you navigate this new tax era. Our commitment is to your financial peace of mind, especially during a time when changes directly affect our working families. Join our network of offices that understand the needs of the Latino community and are here to support you all year round not just during tax season. 

???? 800-867-6829 ext. 202 | www.torotaxes.com 

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