The Tax Cuts and Jobs Act (TCJA), passed in 2017, made sweeping changes to the tax code. But many of its provisions were set to expire after 2025, leaving families uncertain about what the future held. The One Big Beautiful Bill Act changes that by making the TCJA’s key provisions permanent.
Lower Tax Brackets
The TCJA lowered rates across the board. By locking these in permanently, taxpayers avoid a sudden jump back to higher pre-2017 rates.
Higher Standard Deduction
One of the biggest benefits of the TCJA was nearly doubling the standard deduction. For 2025, it remains high, allowing most families to file without itemizing and still receive a large deduction.
Qualified Business Income (QBI) Deduction
Military families with side businesses—whether it’s a consulting gig, real estate rentals, or online sales—can continue to benefit from the 20% deduction on qualified business income.
Stability for Planning
With the TCJA now permanent, families no longer need to worry about sudden tax law reversals in 2026. That stability is critical for planning long-term financial goals such as retirement contributions, buying a home, or starting a business.
What This Means for Military Families
Predictability matters. Military families already live with enough uncertainty around deployments and PCS moves—your tax bill shouldn’t add to it. By making the TCJA permanent, Congress has ensured you’ll continue to enjoy lower tax rates, a higher standard deduction, and valuable small business deductions for years to come.
PIM Tax Services will help you leverage these rules to minimize your tax liability and maximize your refund.