Income Tax Preparation: Avoid 6 new tax law pitfalls "One Big Beautiful Bill Act" (OBBBA).

Alert: The new law also contains some red flags. It's important to notice them and react accordingly.

The One Big Beautiful Bill Act (OBBBA) brings significant changes to the tax landscape. While many provisions offer new opportunities for savings, there are also potential pitfalls that taxpayers need to be aware of.

Understanding these changes now will help you avoid costly mistakes when tax season arrives. Here are six key pitfalls to watch out for:

1. Charitable deduction floor - There's now a 0.5% AGI floor before you can claim charitable deductions
2. Energy credit terminations - Many green energy credits have been eliminated
3. Electric vehicle credit changes - EV credits expired September 30, 2025
4. SALT deduction phase-outs - High-income taxpayers face reduced SALT deductions
5. New documentation requirements - Some deductions now require additional paperwork
6. Timing considerations - Some benefits are only available for limited periods

Working with a tax professional can help you navigate these changes and ensure you're taking advantage of available deductions while avoiding the pitfalls.