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Your Wallet, Your Taxes: New Law's Impact Explained
Money Explainers
Seguir
hace 3 días
Get a breakdown of the new deductions and credits coming your way.Find out when and how the new tax law will affect your finances.
Understand the key tax changes in President Trump's new bill.
#BigBeautifulBill #TaxCuts2025 #FinancialUpdate
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Noticias
Transcripción
Mostrar la transcripción completa del vídeo
00:00
A major component of the recently passed One Big Beautiful Bill Act is a significant tax overhaul,
00:07
representing the largest tax cut bill in years.
00:11
While the legislation passed the House and Senate, the question on many Americans' minds is,
00:17
when will these tax changes actually impact my wallet?
00:21
Simply put, many of the changes will be felt in 2025.
00:25
But you might not fully notice them until you file your taxes next year.
00:30
The most substantial part of the Act makes permanent the current individual tax rates,
00:35
which were initially reduced under the 2017 Tax Cuts and Jobs Act during President Trump's first term.
00:43
These changes, which will be noticeable when people file their taxes in April 2026,
00:48
include an increased cap on state and local tax deductions.
00:52
This means most people won't see a change in their income taxes next year.
00:57
Rather, the bill prevents an increase in rates that would have occurred had the legislation not passed.
01:03
However, the bill does include several new provisions designed to bring more immediate relief to specific groups of taxpayers.
01:10
Additionally, the bill introduces a $25,000 limit for deductions on tipped income,
01:17
though this phases out for higher earners.
01:20
For drivers, up to $10,000 in auto loan interest can now be deducted,
01:25
specifically for new cars assembled in the United States, with income phase-outs.
01:30
Seniors over 65 will also see a new $6,000 deduction,
01:36
a direct outcome of President Trump's pledge to eliminate taxes on Social Security benefits.
01:41
Lastly, the popular child tax credit has been increased from $2,000 to $2,200.
01:48
These targeted changes aim to provide relief to specific subsections of taxpayers,
01:54
a key promise from the Trump campaign.
01:56
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