Tax Policy Changes - The child tax credit received a $200 boost to the maximum amount for the 2025 tax year [2] - Individuals with tipped income can deduct that on their tax return, effective for 2025 [3] - A new $6,000 deduction per senior is available, subject to income thresholds [5][6] Impact of Tariffs - In 2025, tariffs amount to an estimated $1,100 burden per US household on average [7][8] - If tariffs remain in effect, the burden is projected to grow to about $1,400 per household next year [8] - Customs duties on Christmas lights alone have risen to $45 million this year [9] - Tariffs on holiday items have climbed to upwards of $500 million through the first 9 months of 2025 [11] - Toys and board games are subject to tariffs, increasing their cost [13][15] Offsetting Factors - Tax cuts passed by Congress last year will result in larger refunds [16] - The Treasury Department will adjust withholding tables for lower taxes from each paycheck [16] - Tax cuts in aggregate have a larger revenue impact than the tariff hikes [17]

What do you need to know about tax planning in 2026? On this episode of Money Unscripted, learn about the new SALT cap increase, why you might want to consider itemizing over taking the standard deduction, a boosted child tax credit, and other opportunities to save on your taxes. Join host Ally Donnelly and Ajay Sarkaria, Fidelity Regional Vice President of Private Wealth Management, as they walk through the tax strategies that could help you keep more of what you earn. Watch now. 00:00 Welcome to Money Uns ...

Group 1 - The OAS pension provides monthly payments for recipients aged 65 to 74 with annual incomes below $148,451, allowing up to $707.67, while those aged 75 and older with incomes below $154,196 may receive up to $880.44 [1][18] - The OAS pension undergoes quarterly reviews in January, April, July, and October to adjust for cost-of-living increases based on the Consumer Price Index, with benefits not decreasing if the cost of living declines [2][18] - The Canada Workers Benefit (ACWB) serves as a refundable tax credit for low-income working individuals and families, with maximum basic benefits of $1,428 for singles and $2,461 for families, and specific income thresholds for eligibility [13][14][18] Group 2 - The Ontario Child Benefit provides up to $1,607 annually per child based on family net income and the number of children under 18 [7][18] - The Ontario Trillium Benefit combines various credits into monthly distributions to assist low-income residents [8][18] - The veteran disability pension offers tax-free monthly payments to veterans and service members with service-related injuries or illnesses, with specific eligibility criteria [9][12][18] Group 3 - Part-time students aged 18 to 24 with deceased or disabled parents who contributed to the Canada Pension Plan will receive monthly payments of $150.89 starting in 2025, while full-time students will receive $301.77 [15][18] - Low-income seniors aged 65 and older or individuals with disabilities can apply for annual property tax rebates if they meet specific criteria, including receiving GIS or ODSP benefits [16][17][18]

Child Poverty Reduction - States implementing refundable child tax credit programs post-pandemic saw lower child poverty rates compared to states without such programs [1]

Tax Bill Overview - The House is expected to vote on President Trump's tax bill, likely resembling the Senate version [1][2] - Democrats argue the bill disproportionately benefits higher-income households [6] Income Group Impact - The bottom 20% could see a decrease in after-tax income of approximately $560 per year, equivalent to a 23% decline [3] - The middle 20% might experience a slight increase of about $760 annually, representing a 15% rise in after-tax income [3] - The top 20% could receive a tax cut of around $6000, approximately a 23% increase [4] - The top 1% may see a tax cut of about 21%, with benefits potentially declining at the very top due to income thresholds [4] Key Provisions & Costs - Extending the standard deduction is estimated to cost $14 trillion [5] - The child tax credit is valued at $800 billion [5] - Limiting taxes on tips and overtime amounts to over $120 billion [5] - Extending lower marginal tax rates is the most expensive component, exceeding $1 trillion [5] Beneficiaries - Approximately 80% of the benefits from the Senate bill are projected to go to the top 10% of earners [2][6] - The top 10% contribute 70% of the taxes [6] - The working and middle classes are expected to benefit from provisions like the standard deduction and child tax credit [7] Business Impact - Immediate expensing of R&D and capital investment is considered the most economically significant aspect for businesses [7]

Tax Bill Details - Expanded child tax credit [1] - Baby bonds referred to as "Trump accounts" [1] - Significant increases in immigration spending [1]

Fertility Rates & Demographics - US fertility rates are hovering around historic lows, approximately 16% births per 10 women over their lifetime, below the 21% needed to sustain the population [1] - Projections indicate that about 25% of young adults today will never have children [1] - Falling birth rates are a concern due to their impact on people's lives, the economy, and the government [2] - Many countries are seeing below replacement fertility, including Mexico [28] Economic Impact - Declining fertility rates could lead to a drag on the US economy and the capacity to cover government programs like Medicare and Social Security [3] - Lower birth rates affect the entire economy, impacting the number of consumers, workers, and taxpayers [5] - A shrinking worker-to-retiree ratio could threaten the financial sustainability of Social Security, with current estimations suggesting solvency until 2033 [6] - Economic uncertainty can lead to decline in fertility [23] Policy & Incentives - Politicians are starting to pay attention to the issue, with leaders proposing ways to address the birth rate decline [3][7] - Both Democrats and Republicans have proposed policies providing money to families, such as baby bonuses or expanded child tax credits [9][10] - A $5,000 baby bonus is not likely to significantly budge fertility rates [12] - Increasing the child tax credit to $4,500 per child could lead to a 3-10% increase in fertility [13][14] - Governments have attempted to influence family formation practices, but these policies may have unintended consequences [16][17] Societal Factors - It's hard to combine work and having kids in modern US society due to limited support for families [4] - A cultural shift is occurring, with young adults prioritizing education, money, and careers [24][25] - Delay in adulthood and difficulty affording a house may push childbearing to later ages, potentially leading to fewer children [19][20] - Immigration could help offset the economic impacts of population decline, but it's politically and demographically uncertain long term [27][28]