Tax professionals are preparing for the upcoming tax filing season and identifying the most important parts of new federal tax law for their clients.

A certified public accountant in Kalispell, Jake Carter with JCCS, has been giving presentations on the notable changes in the One Big Beautiful Bill Act, which was signed into law by President Donald Trump on July 4, 2025. Changes can impact many different industries, as well as individuals filing taxes this year.

“There’s a lot of great things that are going to be happening for people that are employees in the hospitality industry, or people who get overtime wages,” Carter said.

The legislation made many of the changes from the Tax Cut and Jobs Act of 2017 permanent — adding both short- and long-term rules. Some of the new tax laws affect 2025 taxes (to be filed in 2026), but most start in 2026 or later, according to an article about the legislation from H&R Block.

Carter said he’s noticed over the past five to 10 years that there is more exposure to tax bills in general.

“Anytime you get a tax bill, that’s so pro-business, so pro-taxpayer, there’s so much momentum that happens ... I think it leads to conversations people should be having with their tax advisor to plan ahead or at least understand what’s coming down the pike,” he said.

In addition to no taxes on tips or overtime pay, individuals who are 65 or older can claim a new deduction. Effective 2025 through 2028, those individuals may claim an additional $6,000, according to the Internal Revenue Service. However, there are phaseouts for higher income taxpayers.

People who get tips or overtime wages can look forward to potential deductions from the new tax law. However, Carter said it’s sort of up in the air for how to report overtime wages for 2025.

“It’s not going to be a special code, like on a W-2. So, if you get paid overtime wages, spend one extra moment with a tax advisor, or when you’re filing your taxes make sure you’re getting any allowable deduction for those overtime wages,” he said.

According to the Internal Revenue Service, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay, which is generally, the “half” portion of “time-and-a-half” compensation required by the Fair Labor Standards Act and reported on a Form W-2, Form 1099 or other specified statements.

In a scenario listed on the Internal Revenue Service’s website, a man named Andrew has payroll statements that show a total overtime amount of $15,000. This is the total amount he was paid for working overtime, which is the Fair Labor and Standards Act overtime premium combined with the portion of his regular wages. Andrew may include the $5,000 overtime premium in his filings — which was calculated by dividing $15,000 by three in determining the amount of qualified overtime compensation for 2025.

The federal agency has provided relief during the first year of implementation, said Kelli Schwartzenberger, a CPA with Jordahl and Sliter PLLC.

“It’s kind of going to be a wild card as to what employers provide,” she said. “Employees may need to do some calculations on their own with the information off their pay stub. Typically, it’s going to say overtime hours [on the paystub], but not all kinds of overtime are eligible for deduction. It’s only overtime required by the Fair Labor Standards Act. So, I think there’s going to be some hiccups during the filing season in 2026.”

She expects to see more standardized ways to report this data as time goes on.

A NEW deduction is available to cover some new car loan interest, but there are quite a few stipulations. It’s limited to new personal-use vehicles with a loan that originated after Dec. 31, 2024, said Schwartzenberger.

“The tricky part is that the vehicle’s final assembly has to occur in the United States, which will have to be determined by the VIN,” she said.

It’s something most people probably don’t look for when buying a car, she added. The Bill requires lenders to “file information returns with the IRS and provide statements to borrowers showing the total amount of interest received on qualified passenger vehicle loans” to receive the deduction.

The new law also outlines expansions to federal health savings accounts, which includes allowing funds to be used for telehealth and direct primary care services. In addition, there is expanded eligibility for bronze and catastrophic health insurance plans, which are typically offered through the Affordable Care Act marketplace. People who have either plan can contribute to a health savings account for the first time due to eligibility changes, according to the Internal Revenue Service.

Similar to the federal plan, Montana’s Medical Care Savings Account can be established to help with medical bills. The maximum amount that a taxpayer can contribute to a medical account and exclude from Montana taxable income is $4,600. In 2026, the maximum amount increases to $4,800, according to the Montana Department of Revenue.

There was also a recent increase in state deductions for the Family Education Savings Account, which saw an increase following new legislation in 2025. Montana House Bill 845 increased the maximum deduction to $4,500 ($9,000 for joint filers if both contribute) and will continue to increase based on inflation.

Also known as a 529 plan or a qualified tuition plan, the savings account is set up to allow saving for a student’s “qualified education expenses,” according to the Montana Department of Revenue.

Qualified expenses can include tuition, fees, books, supplies and equipment required for enrollment or attendance at an eligible postsecondary school, as well up to $10,000 in tuition for enrollment at an elementary or secondary public, private or religious school. It also can cover expenses related to professional credentials — like certifications and licenses, according to the state agency.

Whether it’s federal or state, it’s best to consult a tax professional when looking at changes and possible deductions in 2026.

Regardless of how impactful the new legislation may be for taxpayers, Carter said it’s always beneficial to learn more about how to get the most out of filings.

“We’ve seen far more robust bills on taxes that have come through, but we haven’t had one for a couple years, and because there’s so much good news in [the Big Beautiful Bill Act,] people are just jumping on trying to learn about it, Carter said. 

Reporter Taylor Inman may be reached at 758-4440 or [email protected].

    JCCS in Whitefish on Tuesday, Dec. 23. (Casey Kreider/Daily Inter Lake)
 Casey Kreider   

    Jordahl & Sliter in Kalispell on Tuesday, Dec. 23. (Casey Kreider/Daily Inter Lake)
 Casey Kreider