Recent Tax Law Changes Are Creating Real Opportunities for Solopreneurs

The one constant in business is that nothing ever stays the same. Products evolve. Services expand. Employees and customers come and go. Taxes tend to change just as quietly, and for solopreneurs and small-business owners, those changes are easy to overlook.

In fact, according to a recent survey conducted for TurboTax by Wakefield Research, two in five Americans admit they have little or no idea what’s in the recently passed One Big Beautiful Bill. Despite apprehension around the new tax bill, filers could see up to a $1,000 refund increase or lower balance due. And recent changes to certain business tax provisions may create tax savings for smaller businesses, particularly sole proprietors who don’t have dedicated finance teams.

Many solopreneurs view taxes as an annual obligation. File the return, stay compliant, move on. That approach often misses opportunities that only show up when income, expenses, and timing are reviewed at tax time and in some instances money saving opportunities may not show up at all. That’s where TurboTax comes in. Business owners are matched with a TurboTax Business Expert who knows their industry and can find potential tax opportunities throughout the year, making tax planning an easier process and ensuring they maximize their tax savings.

Here, Lisa Greene-Lewis, CPA and Tax Expert at TurboTax, outlines several important opportunities created by the recent tax law changes.

The Qualified Business Income deduction continues to save businesses money

With the Qualified Business Income (QBI) deduction, up to 20% of qualified business income was permanently extended under the One Big Beautiful Bill and remains one of the most valuable benefits available to eligible business owners. Eligibility, however, is not automatic.

“Your Qualified Business Income Deduction can be subject to limitations if you have Specified Service Trade or business like a health, law, or accounting service and your income exceeds certain income thresholds,” Greene-Lewis says.

For tax year 2025, the thresholds are up to $197,300 for single filers and $394,600 for married couples filing jointly. Income above those levels can reduce or eliminate the deduction entirely.

“If you are a business that is subject to income limitations, you may want to defer income into the new year and make sure you keep track of all of your business expenses to assure your taxable income doesn’t exceed the income thresholds so that you are eligible for the entire 20% QBI deduction,” she explains.

Many solopreneurs rely on TurboTax Expert Business Full Service to maintain visibility throughout the year, maximize savings, and streamline their books ahead of tax filing. TurboTax matches small-business owners with experts in their specific industry to maximize tax savings and provides the best possible outcome, giving owners confidence that their planning decisions are reflected correctly when it comes time to file.

Equipment expensing can improve cash flow

Recent changes to Section 179 expensing rules are also reshaping how small businesses think about purchases. “The section 179 provision was permanently extended and the threshold increased to 2.5 million under the new tax law,” Greene-Lewis says. “Solopreneurs and small-business owners are still able to fully deduct the cost of business equipment they purchased as well as certain vehicles purchased for business in the year they start using them instead of spreading the cost over the life of the equipment.”

Vehicle purchases are often misunderstood, she continues. “Many business owners are also surprised to find that certain trucks classified as heavy business vehicles qualify as business equipment and the cost can be fully deducted as long as they use the heavy truck more than 50% for business,” Greene-Lewis notes. Understanding those rules before making a purchase can prevent missed deductions, something TurboTax experts can help clarify.

R&D credits apply more broadly than expected

Research and development credits are another area where perception limits participation. Many solopreneurs assume the credit applies only to laboratories or large technology companies.

“If their research is considered qualified research, they can claim the research and development credit if they are using research and development to innovate and improve their products and processes,” Greene-Lewis says.

Improving workflows, testing prototypes, or refining a product offering may qualify if the activity meets IRS criteria. Under recent changes, certain R&D expenses can now be deducted immediately, and eligible businesses with revenue under $31 million may be able to apply the change retroactively to 2022.

Third-party payments still require attention

Compliance has also shifted for businesses that rely on third-party payment platforms like Venmo or PayPal. While 1099-K reporting thresholds reverted to more than 200 transactions and more than $20,000, that does not remove the need for careful tracking.

“You could still receive a 1099-K at lower thresholds,” Greene-Lewis cautions. “Make sure you keep track and validate the payments processed through third parties, and also track your expenses directly related to your business paid using third-party payment apps, which can reduce your taxes.”

Why you should keep consistent records

Missed deductions are often due to incomplete documentation. “Business expenses like advertising, website development and support, and travel can greatly reduce your taxes,” Greene-Lewis says. “But if you are not keeping track of them, you can leave valuable business deductions out.”

This is why many solopreneurs rely on TurboTax, which uses AI agents to import spreadsheets, easily categorize expenses, and suggest additional money saving deductions specific to their business that they may miss.

With tax season in full swing, Greene-Lewis says now is a good time to gather your business income and expenses so that you don’t leave anything out. “Even if you don’t have all of your expenses gathered together TurboTax will surface industry-specific deductions you’re eligible for so you can decrease your taxes, enabling you to put more into your business.”

Business tax filing deadlines are approaching quickly, with many returns due March 16, 2026. Understanding what has changed and acting on it with the right guidance may be one of the most practical decisions a solopreneur makes this year.

Click here to learn more about how TurboTax can help your small business capitalize on new opportunities and maximize savings.