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 ...

Core Points - The White House claims that the new tax law provides the largest tax break in American history for seniors, stating that 88% of Social Security recipients will pay no tax on their benefits due to the new deductions [5] - Experts from the Center for Budget and Policy Priorities (CBPP) argue that the White House's claims are exaggerated, indicating that only about 46% of older adults will benefit from the new deduction, and that many will still owe taxes on their benefits [10][4] - The new senior deduction of up to $6,000 per person is temporary and only applicable until 2028, which raises concerns about the long-term stability of Social Security and Medicare trust funds [11][14] Tax Deductions and Eligibility - Seniors aged 65 and above can claim a new deduction of up to $6,000, with couples filing jointly eligible for up to $12,000 [3] - Full deductions are available only to individuals earning $75,000 or less, phasing out completely at $175,000; for joint filers, the phase-out starts at $150,000 and disappears at $250,000 [2] - Approximately 64% of Social Security recipients already paid no federal tax on their benefits before the new law, limiting the impact of the new deductions [2] Impact on Social Security - The CBPP estimates that the tax deductions could reduce federal tax revenue from Social Security benefits by $30 billion annually, potentially accelerating the insolvency of the Social Security retirement fund to 2032 [11][12] - Upon insolvency, beneficiaries could face an across-the-board benefit cut of around 24%, which is deeper than current law projections [12][13] - The new law may provide short-term tax relief for some seniors but poses risks to the long-term stability of Social Security and Medicare [14][15]

Core Insights - The article discusses the impact of tax deductions on taxable income and highlights the importance of choosing between standard deductions and itemizing deductions for maximizing tax benefits [1][2][3] Standard Deduction - Approximately 91% of U.S. taxpayers utilized the standard deduction in 2023, making it the most common tax break [2] - The standard deduction has nearly doubled since 2018 and now adjusts for inflation, providing significant tax relief without the need for itemization [3] - For taxpayers aged 65 and older, a new "senior bonus" deduction of up to $6,000 (or $12,000 for married couples) is available, which phases out at modified AGI levels of $75,000 for individuals and $150,000 for married couples [4] Above-the-Line Deductions - Certain deductions can be claimed even without itemizing, known as "above-the-line" deductions, which reduce gross taxable income [5] - Contributions to traditional IRAs and 401(k)s can significantly lower taxable income, with potential reductions exceeding $20,000 for high earners [6][7] - Health Savings Account (HSA) contributions offer a triple tax advantage and are expected to have expanded eligibility starting in 2026 [9][10] - Taxpayers can deduct up to $2,500 in student loan interest, but this deduction phases out for higher earners [11][12] Itemized Deductions - Itemizing deductions is beneficial primarily for those whose total itemized deductions exceed the standard deduction thresholds of $15,750 for single filers and $31,500 for married couples [13] - The state and local tax (SALT) deduction cap has increased to $40,400 for the 2025 tax year, significantly benefiting homeowners in high-tax states [16][19] - Mortgage interest deductions remain valuable, especially with the recent reinstatement of deductibility for private mortgage insurance (PMI) [20][21] - Charitable donations can be deducted if itemized, with new rules allowing standard deduction filers to deduct up to $1,000 for cash donations starting in 2026 [23][25] Medical Expenses - Medical expenses are deductible only if they exceed 7.5% of adjusted gross income, making it a challenging deduction for many [26][27]

Core Insights - The article discusses important tax considerations for home buyers and sellers in 2025, particularly focusing on first-time buyers and the implications of recent tax law changes [1] Group 1: Tax Deductions for Home Buyers - Mortgage interest and property taxes are generally deductible, providing potential tax benefits for home buyers in 2025 [2] - The standard deduction for 2025 is set at $15,750 for single filers and $31,500 for joint filers, suggesting that itemizing expenses may be more beneficial for those with higher deductible expenses [3] - The "One Big Beautiful Bill Act" has increased the state and local tax deduction limit to $40,000, although this limit is lower for higher-income taxpayers [4] Group 2: Importance of Record Keeping - Maintaining excellent records for tax returns is crucial for home buyers, as emphasized by financial experts [5] - It is important to save all documents related to home purchases and mortgages, as well as receipts for home improvements, which can help reduce capital gains tax when selling the home [6] - The IRS considers substantial upgrades that improve the home's structure and livability as applicable for tax deductions, while normal wear and tear repairs do not qualify [7]

Core Insights - The Social Security program will see several changes in 2026, including a 2.8% increase in benefits, which translates to approximately $56 more per month for beneficiaries [4][10] - The increase in benefits is intended to help beneficiaries cope with rising costs, but experts believe it may not be sufficient for many seniors due to higher expenses they typically face [6][4] - A new tax deduction for seniors will lower their tax burden, allowing individuals aged 65 and older to deduct $6,000 from their taxable income [12][11] Benefit Payment Schedule - The first Social Security check of 2026 will be issued on January 2 for certain beneficiaries [1] - Retirement, spousal, and survivor benefits will be paid on January 14 for those born between the 1st and 10th of any month, January 21 for those born between the 11th and 20th, and January 28 for those born between the 21st and 31st [2] Economic Impact - The Social Security program is crucial for the U.S. economy, benefiting over 70 million Americans and driving consumer spending primarily on essentials like food, housing, and healthcare [3] Cost-of-Living Adjustment (COLA) - The 2.8% COLA for 2026 is based on inflation data from the third quarter of 2025 [4] - The increase in Medicare Part B premiums by 11.6% is expected to negate the benefits of the COLA for many seniors [5] Modernization Efforts - The Social Security Administration has transitioned to completely digital payments, ceasing the issuance of physical checks [7] - Staff reductions at in-person field offices are part of the modernization strategy, with a focus on improving phone support and online services [8][9] - While these changes aim to enhance efficiency and reduce costs, there are concerns about potential confusion for beneficiaries lacking access to technology [9] Proposed Legislative Changes - Proposed legislation could increase Social Security payments by $200 per month for the first half of 2026 to help seniors manage rising costs [14] - The current administration has indicated no plans to cut Social Security or raise the retirement age, but other changes could affect certain beneficiaries [15]

Core Insights - The upcoming tax season will serve as the first evaluation of the benefits from the Trump administration's tax law, referred to as the "One Big Beautiful Bill" [2][4] - Significant changes in tax deductions and credits are expected to lead to higher income-tax refunds for households, with projections suggesting an increase of up to $1,000 in refunds for 2026 [5][14] - The new tax law introduces various deductions, including those for overtime pay, tips, and a senior bonus, which create new planning opportunities for taxpayers [4][18] Tax Breaks and Deductions - Specific income limits apply for various tax breaks, such as $75,000 for individuals aged 65 and older seeking a $6,000 senior bonus deduction, and $500,000 for households wanting the full $40,000 state and local tax deduction [1][7] - The SALT deduction has quadrupled to at least $40,000 through 2029, which will lead to an increase in itemized deductions for 5 to 7 million additional households [10][14] - Taxpayers may need to "bunch" charitable contributions to maximize itemized deductions before the eligibility for such deductions decreases in 2026 [12][13] Refunds and Withholdings - The average tax refund for the current year was $3,052, and the upcoming tax season is projected to be the largest refund season ever [5][14] - Critics argue that larger refunds indicate overpayment of taxes throughout the year, suggesting that individuals should adjust their withholdings to avoid this situation [15][16] - Changes in withholding tables in 2026 may allow taxpayers to see the benefits of tax cuts reflected in higher take-home pay [17] State Tax Implications - States may not uniformly adopt the new federal tax changes, leading to a patchwork of state tax laws that could affect the application of new federal deductions [20][21] - Some states, like Michigan, have already aligned their tax laws with the new federal tax breaks, while others are still determining their approach [22] New Tax-Advantaged Accounts - The introduction of "Trump Accounts" allows parents to open tax-deferred accounts for children under 18, with a $1,000 seed contribution for U.S. citizen babies born between 2025 and 2028 [24][25] - While parents cannot claim a tax deduction for their contributions, there may be potential tax benefits depending on employer contributions and IRS regulations [25][26]

Group 1 - Out-of-pocket medical expenses are only deductible if they exceed 7.5% of adjusted gross income (AGI), and prepaying medical appointments could help exceed this threshold [1] - Charitable donations can be timed to maximize tax deductions by bunching several years of donations into one year, helping to clear the itemization limit [2] - Prepaying January mortgage payments can allow for interest deductions on the 2025 tax return, similar to property taxes [3] Group 2 - The standard deduction for 2025 has increased to $15,750 for single filers, $31,500 for married filing jointly, and $23,625 for head of household, making it beneficial to itemize if expenses exceed these amounts [4] - The end of the year is a critical time for making tax moves to increase refunds or reduce tax bills, with many credits and deductions having a December 31 deadline [5] - Correcting withholding errors before the final paycheck of the year can help avoid unexpected tax bills [6] Group 3 - Contributions to retirement accounts like traditional IRAs or 401(k)s can lower taxable income, providing immediate tax benefits [7] - The 2025 contribution limit for 401(k)s is $23,500 for those under 50, with catch-up contributions available for those over 50 [8] - Traditional IRA contributions can reduce taxes depending on income, while Roth contributions do not provide immediate tax benefits but allow for tax-free withdrawals in retirement [11] Group 4 - Health Savings Accounts (HSAs) allow tax-free contributions for medical costs, with limits of $4,300 for individuals and $8,550 for families in 2025 [12] - Flexible Spending Accounts (FSAs) require careful management as unused funds are typically forfeited, necessitating their use by December 31 [13] - Tax-loss harvesting can offset capital gains, but care must be taken to avoid the wash-sale rule [14][15] Group 5 - Adjusting tax withholding and estimated payments is crucial in the final weeks of the year to avoid underpayment penalties [17][18] - Self-employed individuals can manage their tax bills by timing income and expenses, such as deferring income until the next year [26] - Business expenses paid before year-end can reduce taxable income for self-employed individuals, with Section 179 allowing for significant deductions [25] Group 6 - Tax credits, such as those for energy efficiency improvements and electric vehicles, require action before the year ends to maximize benefits [34][36] - The American Opportunity Tax Credit and Lifetime Learning Credit for education expenses can provide significant savings if tuition is paid before year-end [37] - December is a crucial month for tax planning, with opportunities to boost refunds through strategic financial moves [39]

This deduction could significantly reduce tax bills for millions of tipped workers, but only if they maintain accurate records. One expert explains how you can ensure you get this tax break this year. https://t.co/hIvH59UiY3 ...

And the number of seniors who are continuing to pay into the program is rising due to a combination of factors — one of which is that, while Social Security benefits get an annual cost-of-living adjustment, the thresholds for combined income have not been adjusted since 1993.Social Security gets most of its funding from payroll tax revenue, according to the SSA, but the program also gets money by taxing some seniors on their monthly benefits.The reality is that completely eliminating taxes on Social Securit ...