A version of this article originally appeared in Quartz’s Washington newsletter. Sign up here to get the latest business and economic news and insights from Washington straight to your inbox. Big Tech is a big winner when it comes to President Donald Trump’s tax law that Republicans unilaterally muscled through Congress. Google, Meta, Amazon and Tesla all belong to a cohort of large companies that are slashing their corporate tax bills this year as a result of the GOP tax law. It serves to provide a gli ...

Core Insights - Social Security income is crucial for nearly 54 million retired workers, with up to 90% relying on it to cover expenses [1][2] Financial Condition of Social Security - The financial foundation of Social Security is weakening, with potential benefit cuts within the next seven years [2] - The long-term funding shortfall for Social Security has reached an estimated $25.1 trillion, a figure that has consistently grown over the last four decades [5][6] - The Old-Age and Survivors Insurance trust fund (OASI) is projected to exhaust its asset reserves by 2033 [7]

Core Points - The One Big Beautiful Bill Act introduces a new tax break for retirees aged 65 and over, increasing the standard deduction by $6,000, allowing married couples to deduct an additional $12,000 from their income tax [2][3] - The Trump Administration's tax changes allow single filers aged 65 and over to deduct $23,750 and married joint filers to deduct $46,700, provided they meet income limits, with these tax breaks lasting until 2028 [3] Impact on Social Security - The Center for Retirement Research warns that the new tax break could negatively affect the fiscal condition of Social Security, moving the trust fund depletion date from Q3 2034 to Q1 2034 [4][6] - Although the tax break does not change the rules for taxing Social Security benefits, it reduces taxable income significantly, potentially lowering or eliminating Social Security tax for many seniors [7][8]

Group 1 - The IRS announced an increase in the standard mileage rate for business driving by 2.5 cents per mile, effective January 1 [1][3] - The new standard mileage rates will be 72.5 cents per mile for business use, 20.5 cents per mile for medical purposes, and 20.5 cents per mile for moving purposes for certain active-duty members [3][5] - The mileage rate for charitable organizations remains unchanged at 14 cents per mile [3][5] Group 2 - The standard mileage rate is applicable to various types of vehicles, including fully-electric, hybrid, gasoline, and diesel-powered vehicles [5] - Taxpayers have the option to use the standard mileage rate or calculate actual vehicle costs for tax deductions [6]

The last thing anyone wants to think about at year-end is taxes, but it’s the first thing you should think about, advisers say. President Donald Trump’s signature tax and spending package introduced significant tax breaks, with many retroactive to Jan. 1. Americans should take advantage of those, in addition to regular strategies to defer income and increase deductions, advisers say. Moves now can help lower your 2025 tax bill and set you up for an even more prosperous 2026, they say. “Tax planning is al ...

Core Insights - The article emphasizes the importance of utilizing retirement accounts, particularly highlighting the tax advantages they provide for retirement savings [1] Retirement Accounts Overview - Retirement accounts such as 401(k) and traditional IRA offer upfront tax breaks, allowing individuals to lower their taxable income for the year [2] - Roth IRA contributions are made with after-tax money, enabling tax-free withdrawals during retirement [2] Common Myths about Roth IRA - Myth 1: Employment is necessary to open a Roth IRA; in reality, contributions can be made at any time from earned income, regardless of employment status [5][6] - Myth 2: Withdrawals from a Roth IRA must wait until retirement; contributions can be withdrawn at any time without penalties, although earnings cannot be accessed without penalties until certain conditions are met [7][8] Withdrawal Rules - Roth IRAs allow tax-free withdrawals in retirement, and contributions can be withdrawn at any time without penalties [9] - After reaching 59-1/2 years old and having made the first contribution at least five years prior, individuals can withdraw earnings tax-free and without penalties [10]

Tax Policy - Senate Republican tax bill may provide a more favorable update to the tax break favored by Silicon Valley venture capitalists and tech founders [1]