• QBI Deduction Made Permanent: The 20% pass-through deduction for qualified business income remains in place, encouraging review of business structure (LLC, S-Corp, etc.).
• SALT Deduction Cap Raised: The state and local tax deduction cap increased to $40,000 for those earning under $500,000, through 2029.
• Expanded First-Year Deductions: Section 179 and bonus depreciation limits are higher, allowing larger up-front write-offs for equipment, software, and home office tools.
• Temporary Deductions for Tips and Overtime: Through 2028, workers can deduct up to $25,000 in tips and $12,500 in overtime ($25,000 if filing jointly), with income-based eligibility.
• New Deduction for Workers 65+: Those over age 65 with income below $75,000 ($150,000 jointly) can deduct an additional $4,000 through 2028.

Healthcare contractors should review their structure, adjust estimated payments, and track qualifying income and expenses to take full advantage of these updates.

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