We're excited to announce Version 2.1.85, featuring comprehensive updates to reflect the One Big Beautiful Bill Act (OBBB) changes effective for 2025. This major update ensures your tax strategies and calculations are aligned with the latest tax legislation, providing you with accurate guidance for the new tax year.
New Improvements
Itemized Deductions Enhancements
We've completely updated our itemized deductions feature to reflect OBBB changes, including updated data models, instructions, and calculations. Key improvements include:
- Expanded SALT Cap:Updated to reflect the new $40,000 cap ($20,000 for married filing separately) with income-based phaseout for high earners
- Senior bonus enhancement:Taxpayers age 65 and older can claim an additional $6,000 deduction for singles or $12,000 for married couples where both spouses qualify.
- Additional Deduction Items:Added support for ponzi scheme losses and other expanded deduction categories
- Top Bracket Cap:Implementation of the 35% effective rate cap for high-income taxpayers
OBBB Custom Strategy Updates
Multiple tax strategies have been updated with OBBB compliance badges and enhanced descriptions:
- 529 Plan– Updated to reflect the increased annual cap for K-12 withdrawals from $10,000 to $20,000 per year and student. Enhanced qualified K-12 expenses now include tuition, books, instructional and online education materials, professional tutoring, standardized exam fees, and learning therapies for students with disabilities
- Bonus Depreciation– Updated to reflect the OBBB's permanent restoration of 100% bonus depreciation for qualified property acquired and placed in service after January 19, 2025
- Cost Segregation– Updated descriptions and qualification criteria, including enhanced guidance incorporating the bonus depreciation changes
- De Minimis Benefits– Updated criteria reflecting that Form 1099-K must only be issued if total payments to a recipient exceed $20,000 and 200 transactions per year
- Section 179 Expensing– Updated to reflect the OBBB's permanent increase of the Section 179 deduction limit from $1.25 million to $2.5 million for 2025, with the phaseout threshold increased to $4 million and deduction fully eliminated at $6.5 million
Added OBBB badges and guidance banner for
- Child Tax Credit
- Clean Vehicle Credit (Individual & Business)
- No Tax on Car Loan Interest
- No Tax on Overtime
- No Tax on Tips
Bug Fixes
- SALT Cap Calculation: Fixed itemized deductions to properly limit state and local taxes for Married Filing Separately status
- Gambling Income Recording: Resolved accuracy issues with gambling income documentation
- Spouse Data Integration: Corrected itemized deductions calculations to properly include spouse information
- Age Display Logic: Fixed display issue where age now correctly shows 0 when no input data is available
- IRC References: Resolved missing Internal Revenue Code sections and regulations display
These updates ensure you're fully equipped to navigate the 2025 tax landscape with confidence. As always, we appreciate your feedback and are committed to keeping Instead at the forefront of tax planning technology!