What You Need to Know About the One Big Beautiful Bill and Your Taxes

If you run a medical practice, clinic, or healthcare business, there's a new federal law called the One Big Beautiful Bill (sometimes abbreviated OBBB) that brings some changes to taxes. Here’s what you need to know to understand how it may affect your practice and finances.

What the Bill Does

• Extends certain tax cuts that were set to expire. This means some of the lower tax rates individuals and businesses have been using might stick around longer.
• Adds or expands deductions and credits in areas like dependents (kids), tips, overtime, and auto-loan interest. These changes can reduce taxable income or give you more tax relief in specific scenarios.
• Adjusts how certain kinds of aid and deductions work. There are changes to deductions like State & Local Taxes (SALT), and some benefit programs/welfare or assistance—though those are more relevant if your income or business structure touches those areas.

Why It’s Especially Relevant for Medical Practices

Understanding how tax law changes affect your practice can help you plan ahead. Here’s a quick look at how the new bill could impact healthcare professionals:

Potential Positive Effects

• Lower tax burden for high-earning practitioners or practice owners, thanks to extended rate cuts.
• Industry-specific deductions may be easier to claim, such as those tied to overtime pay or auto loans, which could help practices with variable staffing needs.
• More predictability in financial planning if certain tax rates remain stable for a period.

What to Watch Out For

• Some deductions and credits are temporary and may phase out in the coming years.
• Complexity may increase, especially for smaller practices with tighter margins.
• Because the law increases federal spending and debt, there could be future policy changes that affect long-term tax strategy.

Who Might Benefit Most vs. Who Might Be More Affected

• Likely to benefit:
  • Practices/owners with higher revenues and taxable income — more room to leverage rate cuts and deductions.
  • Healthcare businesses that regularly finance equipment, vehicles, or have staff working overtime — because some new deductions or credits assist those scenarios.
  • Individuals in medical professions with dependent children — extra child tax credit or dependent-related changes could help.
• Might see little change, or need to adjust:
  • Smaller practices, particularly those with tighter margins or more dependence on government reimbursement, might not benefit as much. Some changes may increase complexity.
  • People or businesses depending on aid or assistance programs — if their eligibility is affected by new work requirements or income thresholds.
  • Practices in high cost-of-living or high SALT tax states may not get full benefit if SALT deductions or limits are still constrained (or change back later).

What You Should Consider Doing Now

To make sure you’re positioned well:

1. Talk to your tax/CPA advisor about how the new law affects your particular structure (LLC, S-Corp, sole proprietorship, etc.).
2. Review your deductions — especially those that are newly expanded or altered. For example: vehicle loans, overtime, tips, dependent credits.
3. Project forward — some benefits might be temporary. Modeling what your taxes might look like in 3-5 years under different scenarios can help you avoid surprises.
4. Keep good documentation. With legal changes come stricter rules and more audits; clear records of expenses, deductions, overtime, loans, etc., will be valuable.

Final Thoughts

Tax legislation can be complex, and its impact often depends on your unique circumstances — whether you’re a practice owner, a physician, or part of an administrative team. The most effective way to approach these changes is to treat them as an opportunity to review your financial strategy and ensure your practice is positioned for stability.

At Med Firm, our goal is to provide clarity so you can make confident, informed choices. Staying proactive — with the help of your CPA or tax advisor — is the best way to ensure that your practice continues to thrive.

‍