Core Insights - The One Big Beautiful Bill Act introduces significant tax changes for U.S. homeowners, including a permanent extension of the $750,000 mortgage interest deduction limit and reinstatement of mortgage insurance premium deductions [2][6] - The SALT deduction cap has increased from $10,000 to $40,000, benefiting homeowners in high-tax states [6][8] Tax Deductions - Homeowners may find itemizing deductions more beneficial due to the new tax law, especially if they pay mortgage insurance premiums, which can push them over the threshold for itemizing [3][11] - The mortgage interest deduction applies to the first $750,000 of mortgage debt, meaning only a portion of interest on larger mortgages is deductible [4][10] Mortgage Insurance - Mortgage insurance premiums, previously deductible from 2007 to 2021, are now deductible again, potentially saving homeowners an average of $1,454 annually [6][11] - Homeowners with less than 20% equity typically pay mortgage insurance, which can range from 0.2% to 2% of the mortgage amount annually [5][6] SALT Deduction - The SALT deduction allows homeowners to deduct various non-federal taxes, with the new cap significantly benefiting those in states with high property taxes [7][8] - The deduction phases out for households with incomes over $500,000, primarily benefiting middle- to high-income households [8][9] Financial Considerations - Homeowners with higher mortgage rates, averaging around 6.69% in recent years, may find the mortgage interest deduction particularly valuable [10] - The decision to itemize or take the standard deduction will depend on individual financial circumstances, including mortgage size and other deductions [9][11]

Rix Pix Photography / Shutterstock.com · Rix Pix Photography / Shutterstock.com With markets at nosebleed levels and correction whispers growing louder, there's plenty for savvy investors to worry about. Indeed, for those who may be sitting on a pile of  massive capital gains, there won't be many tears shed. Indeed, that's a great problem to have. Quick Read Tax-loss harvesting offsets capital gains dollar-for-dollar. Investors can use $3,000 in losses annually to offset ordinary income. Donating app ...

Core Insights - The upcoming tax season presents opportunities for individuals to optimize their tax refunds and reduce liabilities through strategic actions in Q1, particularly under the Big Beautiful Bill Act, which could increase average refunds by up to $1,000 and reduce individual income taxes by $129 billion in 2025 [1]. Tax Strategies - Prior-Year IRA Contributions: Individuals can contribute up to $7,000 for the 2025 tax year if under 50, and up to $8,000 if 50 or older, until the tax filing deadline [3][6]. - Retirement Savings Impact: Maxing out IRA contributions at the current limit of $7,000 over 20 years with a 6% return could yield $296,348, compared to $169,341 if contributing the average of $4,000 [4]. - Health Savings Account (HSA) Contributions: Contributions to HSAs are tax-deductible and can be made for the previous tax year, with limits of $4,300 for self-only coverage and $8,550 for family coverage for 2025 filings, plus a $1,000 catch-up contribution for those aged 55 and older [5][6]. - Self-Employment Deductions: Self-employed individuals can utilize various deductions to lower tax liabilities, including home office expenses, business-related software, phone and internet costs, mileage, and professional services [7].

Tax filing season is in full swing, and while preparing your taxes can often be filled with stress, misplaced documents, and worries about proper filing, this year, there may be a silver lining. According to analysts, many Americans may get larger refunds in 2026 due to Trump’s 2025 One Big Beautiful Bill legislation. Most Read from Fast Company Last year, the average refund was $3,167, but, given there are a number of new changes and deductions, experts say many Americans are looking to get back an add ...

Core Insights - The One Big Beautiful Bill Act (OBBBA) introduces permanent changes to the tax code along with temporary tax breaks that have strict limits and phaseouts, available until 2028 or 2029 [1] Group 1: Itemized Deductions - The OBBBA raises the state and local tax deduction cap (SALT) from $10,000 to $40,000 for married couples filing jointly and single filers, applicable from 2025 through 2029 [2] - For 2025, the standard deduction is set at $31,500 for married couples and $15,750 for singles, making itemization beneficial if total itemized deductions exceed these amounts [3] - The new $40,000 SALT cap phases out for modified adjusted gross income (MAGI) over $500,000, reverting to the original $10,000 limit at a MAGI of $600,000 [4] Group 2: Targeted Deductions - The OBBBA introduces temporary above-the-line deductions aimed at middle-income workers, but these come with strict income and benefit limits [5] - The qualified overtime pay deduction allows up to $25,000 for married couples and $12,500 for singles, phasing out at a MAGI of $300,000 for married couples and $550,000 overall [6] - The qualified tips income deduction permits writing off up to $25,000 of reported tip income, with phaseouts starting at a MAGI of $300,000 for married couples and $150,000 for singles, fully eliminated at $550,000 and $400,000 respectively [7] - The auto loan interest deduction allows up to $10,000 for interest on loans for new personal-use vehicles assembled in the US, phasing out at $200,000 for married couples and $100,000 for singles, completely gone by $250,000 and $150,000 [8] Group 3: Senior Deductions - For seniors aged 65 or older, the OBBBA provides a temporary deduction of up to $12,000 for married couples ($6,000 per eligible spouse) and $6,000 for single filers, although this deduction is fragile [9]

Core Insights - The article discusses various strategies for taxpayers to save on their taxes, particularly in light of recent changes under the One Big Beautiful Bill Act (OBBBA) that will affect tax returns filed in 2025 and beyond Group 1: Tax Filing Strategies - Taxpayers need to decide whether to itemize deductions or take the standard deduction, with the standard deduction amount increasing for tax year 2025 due to the OBBBA [2][3] - The OBBBA made the increased standard deduction permanent, which has led to a significant decrease in the number of taxpayers itemizing deductions, dropping from about one-third to less than 10% [4] - An estimated 5 million additional taxpayers are expected to itemize in 2025 as a result of the new law [4] Group 2: Deductions for Seniors - A new deduction for seniors aged 65 and older allows for an additional $6,000 deduction on top of itemized or standard deductions, applicable per person [5][6] - The deduction phases out for individuals earning over $75,000 or married couples filing jointly earning over $150,000 [6] Group 3: State and Local Taxes (SALT) - The OBBBA increased the SALT deduction limit from $10,000 to $40,000, potentially making itemizing more beneficial for many taxpayers [7][9] Group 4: Tips Deduction - Starting in 2025, certain workers can deduct up to $25,000 in tips, with the deduction phasing out for those earning more than $150,000 [10][11] Group 5: Charitable Contributions - Beginning in the 2026 tax year, taxpayers can deduct $1,000 in charitable donations even if they take the standard deduction, a change that may benefit those who donate to charities [13][14] Group 6: Investment Losses - Taxpayers can offset capital gains with investment losses, with a limit of $3,000 for single filers, and losses can be carried forward to future tax years [14][15] Group 7: Health Savings Accounts (HSA) - Contributions to HSAs can reduce taxable income and are made with pre-tax dollars, with specific contribution limits based on individual and family plans [16][17][18] Group 8: Retirement Accounts - Contribution limits for 401(k) plans are set at $23,500 for 2025, increasing to $24,500 for 2026, with additional catch-up contributions available for those aged 50 and older [19][20] - Taxpayers can contribute to traditional IRAs until April 15, 2026, for the 2025 tax year, with limits of $7,000 for 2025 and $7,500 for 2026 [20][21]

Core Viewpoint - The combination of the expansion of artificial intelligence data centers and favorable tax provisions from recent legislation is expected to result in significantly lower tax bills for major tech companies in 2025, enhancing their profitability [1][2]. Tax Bill Reductions - Amazon's tax bill is projected to decrease from approximately $9 billion in 2024 to $1.2 billion in 2025 [3]. - Meta Platforms anticipates a reduction in its tax bill from about $9.6 billion in 2024 to $2.8 billion in 2025 [3]. - Alphabet's combined federal and state tax obligations are expected to drop from around $21.1 billion in 2024 to $13.8 billion in 2025 [3]. Profit Increases - Amazon's domestic profits are expected to rise to nearly $90 billion in 2025, reflecting an over 40% increase from 2024 [4]. - Alphabet's domestic profits are projected to increase by over 32% to $143.6 billion [4]. - Meta's profits are anticipated to reach $79.6 billion, marking a 20% increase [4]. Investment and Tax Strategy - Amazon reported investments exceeding $340 billion in the US last year, including significant allocations towards AI innovation [8]. - Meta's CFO indicated that the company is experiencing substantial cash tax savings due to the new US tax laws, which are beneficial given their investments in infrastructure and R&D [8].

Most Americans think of retirement as a time when they can finally hang up their work boots and enjoy a life of leisure, whether that consists of traveling, spending more time with family or pursuing other personal dreams and goals. But the reality of higher living expenses and low overall savings can make retirement a difficult stretch for many. To help alleviate these concerns, Fidelity created a list of major money moves people can use to make their retirement more financially comfortable. Here’s a l ...

[music] Hello and welcome to market domination overtime. Stocks closing the train day mixed. Our very own Ines Fay has the headlines.Enes. >> Yeah, Josh. And just taking a look at the three major averages.We're seeing the S&P 500 appearing to close just a hair above its last record high at 6978. Then also taking a look at the Nasdaq Composite up 9/10en of a percent and the Dow Industrial Average down 8/10en of a percent weighed by United Health. I do want to point out the US dollar because we have been seei ...

The question Sharon Eperson is here now is to kind of break this all down Sharon and give people a sense of what to really expect now. >> Well, talking to tax experts, you know, whenever you hear the words no tax, there's usually some caveats there and there are a lot more details to this that that we need to go through, particularly when you're looking at the no tax on tips, a lot of discussion about that and whether that's going to happen. Key thing to know, this is a deduction.It is not going to complete ...