The United States government just passed a massive piece of tax legislation, nicknamed the “One Big Beautiful Bill.” It’s been widely discussed across media outlets and online, and reactions have been mixed.
Rather than weigh in on the politics, we want to offer a clear, creator-focused breakdown of what’s actually in the bill and what might affect your business moving forward. If you’re a creator operating through an LLC or S Corp, have children, or are buying a car, a few items may be relevant. But unless you own a home in a high-cost-of-living state like California or New York, most creators will not experience any major changes to their taxes.
Let’s take a closer look.
Tax Brackets Stay the Same
The individual tax brackets introduced in 2017 were set to expire and change in 2025, increasing taxes for many filers. This bill locks those existing brackets in place, preventing a scheduled rate hike. So your federal income tax rate will remain unchanged.
Here’s a reminder of the current brackets for single filers:
For most creators, this simply means your tax bill will remain similar to what you’ve seen in recent years. No changes there.
QBI Deduction Extended
The Qualified Business Income (QBI) deduction allows pass-through entities (LLCs and S Corps) to deduct up to 20% of their business income on their personal return. This is a major tax break for qualified small businesses that can save them thousands in taxes. This provision was originally set to expire in 2025, but the new bill makes it permanent.
This is one of the few provisions that may continue to save you lots in taxes depending on your income and structure. You should discuss this with your tax professional to see if you qualify for this major deduction.
Let’s Talk About Tips … But Don’t Get Too Excited Yet
One of the most talked-about parts of this bill is the new tax exemption on tips, and if you’re a creator who livestreams, you might be getting excited that your viewer donations are now tax-free. Well, I have some bad news for you…
Here’s the deal: the language in the bill very clearly ties this exemption to W-2 employment. In other words, it’s designed for traditional service industry workers and not independent contractors or self-employed individuals. The bill defines “tips” in connection with employment status, meaning you’d have to be someone’s employee (receiving a W-2) for the exemption to apply.
So, even though creators often use words like “tips” or “donations” interchangeably to describe money sent via PayPal, Ko-fi, Twitch, or YouTube, those payments don’t meet the IRS definition of a W-2 tip. They’re treated as self-employment income just like sponsorships, AdSense, brand deals, and affiliate commissions. If you’re streaming or creating content as your own business, this exemption unfortunately doesn’t apply to you.
The takeaway? Keep tracking and reporting all viewer support as taxable income, just like before. And if you’re unsure how to categorize something (PayPal donations vs. brand payments vs. subscriptions), it’s a good idea to talk to a tax pro.
Done-for-you taxes and bookkeeping for creators
SALT Deduction Increased
Homeowners are typically able to deduct their mortgage interest and real estate taxes on their tax return. It’s one of the big benefits of owning a home. The 2017 tax bill put a cap on the taxes portion of the deduction at $10,000, which mainly affected homeowners in high-tax states such as California, New York, or New Jersey. This bill raised the real estate tax cap from $10,000 to $40,000.
However, this benefit is not broadly available. It primarily helps higher-income earners who itemize their deductions and own property in expensive areas. Additionally, the increased cap begins to phase out for individuals earning more than $500,000 per year.
If that applies to you, this could translate to significant tax savings, so congratulations! But for most creators who are renters or those living in lower-tax states this will have no impact.
Child Tax Credit Increased and Made Permanent
The Child Tax Credit has been raised from $2,000 to $2,200 per child and is now permanent. Without this change, the credit would have been cut in half to $1,000 starting in 2025.
This provision helps working families and offers some relief at tax time, although the increase is modest.
New “Trump Accounts” for Children
The bill introduces a new one-time investment account for children born between 2024 and 2028 where they will receive a $1,000 deposit into a diversified investment account. The funds can be used for educational expenses and will be taxed only on long-term capital gains.
This program will not apply to all creators but may be relevant if you’ve had a child in the last year and a half or are planning to grow your family soon.
Auto Loan Interest Deduction for US-Made Vehicles
A new deduction allows individuals to write off up to $10,000 in interest on car loans for US-manufactured vehicles and phases out for those earning more than $100,000 as individuals or $200,000 as married couples.
For creators within those income limits who are planning to purchase a car, this could provide an estimated savings of around $500 or so, depending on the size of the loan.
End of Clean Energy Credits
One big change of the bill is the elimination of clean energy tax credits. This includes the $7,500 federal credit for new electric vehicles and other incentives for energy-efficient home improvements like solar panels, insulation, and upgraded appliances.
If you were planning to make eco-friendly upgrades to your home or purchase an EV, the financial incentive to do so is now gone.
NOT the “Biggest Airbnb Gold Rush in U.S. history”
We’ve seen many misleading social posts that state this bill will usher in the “biggest Airbnb gold rush in U.S. history”. That simply is not true. Although there are aspects that can benefit all real estate investment owners (long-term rentals, short-term rentals, commercial, etc.) to some degree, for most people who own rental properties, there is little to no benefit.
Almost all of the benefits in the bill goes to professional real estate professionals, which is defined by the IRS as people who spend at least 750 hours per year managing real estate.
The Tradeoffs Creators Should Be Aware Of
While the bill extends tax cuts and adds a few targeted deductions, it also offsets these changes with cuts elsewhere, most notably to Medicaid, Medicare, and SNAP.
These reductions won’t impact most creators’ taxes directly in the short term. But they may have broader consequences depending on how you access health care, especially if you’re on state-supported insurance plans, or if you’re part of a household that relies on public programs.
It’s something to keep in mind as we continue helping clients build sustainable businesses, not just financially, but holistically. The more you grow as a creator, the more important long-term planning around health care, retirement, and stability becomes. We’ll keep watching how these shifts play out and guide you through any ripple effects.
Final Takeaway
For creators, this bill mostly preserves the status quo. The QBI deduction will continue to offer savings for business owners, and homeowners in high-tax states may benefit from the SALT increase. Parents will see a small increase in the Child Tax Credit, and a few niche deductions apply to specific purchases or life events, but nothing in this bill fundamentally changes the financial picture for the majority of content creators.
We are already adjusting strategies behind the scenes for our clients and will continue to provide recommendations based on each person’s specific situation.
If you’re already with us, you’re in good hands. If not, this is a great time to make sure your business structure is set up to take advantage of everything available to you. Let’s chat about what this means for your business.