Start Clean in 2026: Tax Deductions, the One Big Beautiful Bill & Why This Year Will Be Different

If January 2026 was somewhere between “I will fix last year’s mess” and “Please don’t make me deal with receipts again,” you’re in the right place.

Tax season used to feel like wrestling a raccoon in the dark, but this year, we’re doing things differently. That’s why you should start with our “9 Steps to Tax Readiness & Less Stress All Year Long,” which will turn seasonal panic into year-round confidence.

And yes, there’s a brand-new law in town that may affect how you file: the One Big Beautiful Bill Act.

What’s the One Big Beautiful Bill (OBBBA), and Why It Matters to You

Signed into law on July 4, 2025, the One Big Beautiful Bill (officially called Public Law 119-21) is the biggest overhaul of U.S. tax law since the 2017 Tax Cuts and Jobs Act, and parts of it begin to affect taxes you’re filing in 2026 for 2025 income.

This law permanently extends many tax breaks that were scheduled to expire at the end of 2025, raises certain deductions, and expands some small business tax benefits.

Here are a few highlights that business owners may care about:

• Section 179 & Expensing Are Bigger and Stickier

The cap for Section 179 expensing is now permanently $2.5 million with future inflation indexing, making it easier to deduct big purchases like equipment and software in the year you put them into service.

• Qualified Business Income (QBI) Deduction Is Extended

The 20% QBI deduction for pass-through businesses (S-corps, partnerships, LLCs) is now permanent, offering predictability for business owners who flow income through personal returns.

• Estate & Gift Tax Exemptions Rise

Though more relevant for estate planning than quarterly bookkeeping, the lifetime exclusion increases dramatically in 2026, showing the law’s breadth.

• State & Local Tax (SALT) Deductions Are Expanded (Temporarily)

While SALT cap had been $10,000, the new law increases it (with limits and phase-downs), something that could help owners in high-tax states.

• Employee Benefits Credits Increased

Some employer credits (like for childcare were expanded, more on this below.

Bottom Line: many tax provisions that were scheduled to sunset didn’t, and that can simplify planning by keeping familiar deductions in place rather than forcing your accountant to explain a surprise welcome back to 2017!” trend reversal.

Deduct Your Own Health Insurance (Still a Win)

If you’re self-employed and pay your own premiums, yes, you may still deduct them on your personal return, reducing taxable income. This applies to medical, dental, vision, and qualified long-term care premiums for you and your family. Just make sure you actually paid them (yes, that means good records).

It’s like getting a tax “thank you card” from the IRS, but only if you can prove the expense.

Don’t Forget the Healthcare Tax Credit (It’s Still Around)

If you provide health insurance to employees (and meet the eligibility rules), you may qualify for the Small Business Health Care Tax Credit, but the requirements are specific and phase-in based on wages and number of employees. A quick chat with your CPA is worth it before you try to claim it.

Track Everyday Expenses Like a Pro

Mileage, supplies, travel, software subscriptions, all legitimate business expenses. But only if you capture them when they happen.

Think of it like brushing your teeth; once you make it a habit, the dentist (or in this case, the IRS) is a lot less terrifying.

This year, make scanning receipts part of your workflow. Forward email receipts, snap photos on the spot, and watch as your organized system actually pays off. That’s the “Start Clean” magic.

Section 179 & Bonus Depreciation (Bigger Deductions, Better Year)

The One Big Beautiful Bill didn’t just tweak Section 179, it boosted and indexed it, making immediate expensing of larger purchases easier and more predictable.

So, if you bought new equipment, computers, tools, or other eligible property in 2025, you might be able to deduct it all in 2025 rather than spread it over years. That’s a serious win if you’re trying to reduce taxable income, especially after a big investment year.

Credits That Reward You For Supporting Your Team (Now Better in Some Cases)

Under the updated law, some employer credits saw expansions, particularly benefits like employer-provided childcare. In fact, the childcare credit is increased significantly for eligible businesses (up to a much higher annual cap), and includes more types of childcare arrangements than before.

Want employees to love working for you and help your bottom line? These are worth tracking.

You Can’t Deduct What you Don’t Record

Here’s the reality: the best deductions in the world are worthless if you can’t prove them.

Receipts aren’t magical paper strips, they’re your evidence that you earned, spent, and justified each dollar. Whether you use software, an app, or a good-old accordion folder, make organizing receipts a weekly thing, not a yearly panic.

As your 9 Steps to Tax Readiness & Less Stress guide lays out, consistent record-keeping turns tax chaos into tax confidence.

2026 can be the year you break the cycle of messy books and April panic. Start Clean. Stay organized. And let the law work for, not against, you.