The One Big, Beautiful Bill Act, Explained

As an optometrist, staying financially ahead means more than billing and budgeting—it’s also about adapting to policy changes that may affect your bottom line. The newly passed One Big Beautiful Bill Act¹ extends and expands The Tax Cuts and Jobs Act of 2017,² offering substantial tax advantages to optometry practice owners. Simultaneously, big changes to student loan repayment are on the horizon. Here’s what you need to know to position your practice (and your personal finances) for success.

STUDENT LOAN SHAKE-UP

If you’re still paying off student loans or mentoring new graduates, this section is important. Beginning in 2026, federal student loans will be capped, maxing out at $50,000 per year and $200,000 per lifetime for graduate loans. In addition, Graduate PLUS loans³ will be eliminated in 2026, which could pressure schools to reduce tuition but might also limit how much future optometry students can borrow, making private financing more common.

More critically, a new repayment system, the Repayment Assistance Plan (RAP), will replace all current income-driven plans (eg, Saving on a Valuable Education [SAVE], Pay as You Earn, Revised Pay as You Earn).

• Loan payments are based on gross income. Unlike SAVE, which excludes 225% of the poverty line, RAP uses your full adjusted gross income. (The takeaway here is to expect higher monthly payments.)
• There is now a 30-year forgiveness timeline, which is longer than SAVE’s 20- to 25-year payback timeline, meaning more interest paid overtime.
• There are fewer tax benefits for high earners, meaning most ODs earning six figures will not see subsidized interest or meaningful loan forgiveness.
• There are only two loan repayment options: It’s either fixed term or RAP. (ODs may be forced into RAP if they hold federal loans.)

Key takeaway for optometry practice owners: If you’re still paying down student loans, consider consulting with a student loan advisor to help navigate your options.

TAX LAW HIGHLIGHTS

Multiple tax law changes under the One Big Beautiful Bill Act may benefit high-income professionals and small business owners, including optometrists. The following highlights are likely to matter most to your practice:

Marginal Tax Rates Stayed Lower

The top federal rate remains at 37% instead of reverting to 39.6%. For most OD owners, this can save thousands annually.

The 20% Qualified Business Income Deduction Made Permanent

This is massive. If your practice is structured as an S-corp, an LLC, or a sole proprietorship, you can continue deducting 20% of your business income. This deduction was set to expire in 2025 but is now permanent, helping you keep more of your profits.

Standard Deduction and
AMT Extension

The doubled standard deduction ($15,750 single/$31,500 married) and increased Alternative Minimum Tax exemption are sticking around. These benefits simplify tax filing for many OD households.

SALT Deduction Quadrupled

If you practice in California, New York, New Jersey, or Illinois, you’ve likely hit the $10,000 cap on state and local tax (SALT) deductions. That cap is now $40,000 per return (2025–2029)—a big deal for itemizing deductions. With high state income and property taxes, many OD couples can now deduct their full SALT burden, potentially saving thousands per year.

100% Bonus Depreciation: Instantly Write Off Practice Investments

Thinking about buying an OCT or a fundus camera or remodeling your office? With the new legislation, you can now deduct 100% of equipment or qualified improvement costs the year you purchase them, permanently. Instead of depreciating a $100k piece of equipment over 5 years, practice owners can deduct it all upfront, potentially accelerating their return on investment and lowering taxable income.

Automobile Loan Interest Deductible (2025–2028)

For the first time in decades, personal automobile loan interest (up to $10,000/year) is deductible if your vehicle was assembled in the United States. While this phases out for incomes above $150k (single) or $300k (joint), some ODs or their spouses with separate incomes could still qualify.

No Tax on Social Security Benefits (2025–2028)

For ODs nearing retirement, this is big. A new $6,000 (single) or $12,000 (married) deduction for seniors means the majority of retirees will owe no federal tax on Social Security. This helps those easing into retirement or working part-time while drawing benefits.

Cash Bonus for New Children (2025–2028)

Are you planning for a family in the near future? The new “Trump Account” offers $1,000 in free money per child born or adopted from 2025 to 2028, deposited into a custodial savings account for education or homebuying. It’s essentially a tax-free starter fund for your child, to which you can contribute up to $5,000 annually thereafter.

YOUR TO-DO LIST

The list of action items below may help optometry practice owners make the most of the aforementioned changes, depending on your individual situation:

• Consider refinancing student loans early.
• Maximize any Qualified Business Income deductions.
• Schedule major practice investments (eg, imaging technology purchases or remodels) to capitalize on bonus depreciation.
• Consider whether itemizing now makes sense given the expanded SALT cap.
• Delay upcoming automobile purchases to use the car loan interest deduction.
• If you’re family planning in the next few years, understand and take advantage of the $1,000 “Trump Account” bonus.

THE TRADE-OFFS

Of course, this bill isn’t free. Some estimations predict upwards of $2.8 trillion in added federal deficit over the next decade.⁴ Furthermore, many of these provisions are scheduled to sunset after 2028, meaning tax hikes could return unless extended. In addition, high-income earners (ie, many OD practice owners) stand to see the most benefit, while support for low-income groups has shrunk, potentially affecting Medicaid, patient coverage, and/or public health budgets.

A FINAL WORD
FOR PRACTICE OWNERS

These changes offer real tax savings and cash-flow advantages, and it’s important to use them wisely to reinvest in your practice, pay down debt, and strengthen your long-term financial position. As always, it may also be worthwhile to consult with your tax advisor or accountant to seek personalized financial counsel.