According to a 2025 Self Financial survey, 45% of Americans were working a side hustle this year. Whether you’re walking dogs, driving people, delivering food or doing freelance projects, gig work is great for extra income on a flexible schedule. But it also comes with some drawbacks, including a lack of employee benefits and the need to manage your own taxes. As the year comes to a close, now’s the time to take steps that can help you slash your tax bill and have a smoother filing experience in 2026. Fr ...

Artem Varnitsin/Shutterstock Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. For many retirees, the holiday season is the perfect time to give back. And there’s one IRS-approved trick that can make that generosity go even further. A qualified charitable distribution, or QCD, is a direct donation from your IRA that can shrink your tax bill while helping your favorite charity. Must Read “It’s one of the IRS’ best-kept secrets for retirees,” Ashton Law ...

Tax Policy - The State And Local Taxes (SALT) deduction cap is 4 times higher than last year [1] - Individuals may want to consider itemizing deductions instead of taking the standard deduction [1]

Charitable Giving Motivations - Employer matching contributions are a significant motivator, with approximately 65% of large companies and 28% of small to midsize firms offering this benefit [1] - Tax breaks can be a motivator for charitable giving, but should not be the primary driver [1] Tax Law Changes and Strategies - Starting in 2026, a charitable tax break for nonitemizers will be available, worth up to $1,000 for single filers and $2,000 for married couples filing jointly [2] - For the 2025 tax year, a charitable deduction requires itemizing taxes, suggesting timing gifts for after January 1st if not planning to itemize [3] - In 2026, for taxpayers in the 37% tax bracket, the value of donations will be capped at 35% [3] - High earners may benefit from larger deductions by increasing giving in the current year [4] - Donor-advised funds allow bunching multiple years of gifts into a single year for an upfront charitable deduction [4] - Donor-advised funds enable investment and potential growth of the balance while distributing grants to charities over time [4]

Core Points - The American tax code is experiencing significant changes due to various legislative actions, particularly the SECURE Act 2.0, which introduces new rules affecting retirement savings for seniors [1][3] - The SECURE Act 2.0 aims to encourage retirement savings by allowing higher catch-up contributions for older individuals, specifically introducing a "super catch-up" contribution limit [3][4] Catch-up Contribution Changes - The SECURE Act 2.0, signed into law at the end of 2022, includes major modifications to retirement savings plans such as 401(k), IRA, and Roth accounts, enhancing coverage and flexibility [3] - Starting in 2025, individuals aged 60 to 63 can contribute an additional $11,250 to their 401(k), while those over 50 can add $8,000 in catch-up contributions beginning in 2026 [4] Income-based Restrictions - A new income-based restriction will be implemented in 2026, requiring individuals over 50 earning more than $145,000 to direct their catch-up contributions to a Roth 401(k) instead of a traditional 401(k) [5] - This change results in a higher upfront tax burden for high-income seniors, as contributions to a Roth 401(k) are made on an after-tax basis, eliminating the tax deduction typically associated with traditional contributions [6] Tax Implications - For example, a 60-year-old earning $192,000 making a super catch-up contribution of $11,250 could incur nearly $3,600 in taxes at a 32% marginal tax rate, while a 51-year-old at a 24% rate could pay $1,920 on an $8,000 contribution [7] - Given that one in five individuals aged 45 to 55 earn over $100,000, these changes could significantly affect millions of Americans [7]

Changes to US tax laws could lead to a surge in charitable giving this year. Robert Frank joins us with the latest installment of Inside Wealth. And Robert, this is the time of year when people start thinking about this.It's >> all about giving. And for many people, it's all about giving and taxes. Uh so last year, Americans Exactly. Americans gave $390 billion to charity that last year.That was a record. This year will likely be even higher thanks in part to a tax change. The big beautiful bill included tw ...

Tax Bracket Adjustments - The IRS adjusts tax brackets annually to account for inflation, preventing "bracket creep" [1][2] - Due to inflation adjustments and an increased standard deduction, taxpayers may pay slightly less in 2025 compared to 2024, even with the same income [3] Tax Benefits for Seniors - Seniors aged 65 or older receive a temporary $6,000 tax deduction in addition to the standard deduction for the years 2025-2028 [4] - The $6,000 deduction for seniors is phased out for individuals with income at $75,000 and couples at $150,000 [4] - Changes to Medicaid may impact seniors, potentially raising costs related to long-term care [5] State and Local Tax (SALT) Deduction - The SALT deduction has increased to $40,000 [5] - Taxpayers in states with high local and state taxes who itemize their deductions could significantly benefit from the raised SALT deduction [6][7] Tax Planning Strategies - Bunching deductions, such as charitable contributions, can help taxpayers exceed the standard deduction and maximize tax savings [8] - Bunching can also be applied to medical expenses to surpass the required percentage for write-offs beyond the standard deduction [9]

It's giving season and when you think about making a charitable contribution, you may want to consider what kind of tax break can I get. That should not be your only consideration, but it is something to think about. And many financial advisors say take a multi-year approach because there going to be some changes coming up in 2026.Starting next year, you will be able to take an above the line deduction whether you itemize your tax return or not on charitable contributions up to $1,000 for single filers, up ...

Bring in show music, please. >> Hi, I'm CNBC producer Katie Kramer. Today on Squawk Pod, another day no government open. >> This is different than than other government shutdowns. I know they all rhyme, but they're not all the same. >> Our Emily Wilkins with the latest out of Washington's blame game. >> I think a lot of it is going to come down to trust. It's going to come down to discussions. It's going to come down to how comfortable senators feel. and the Treasury Secretary Scott Bessent weighs in. >> Yo ...

Many nonprofits are facing financial challenges because of federal funding cuts and termination of contracts. Now, the government shutdown is adding to disruptions just as the most popular season for charitable giving gets underway. Sharon Eper joins us right now with more on your money and upcoming tax changes for donations.Good morning, Sharon. Good morning, Becky. You know, whether it's providing disaster relief, child care, support for seniors, or other needs in local communities, many nonprofits are co ...