Big changes are on the way that could affect how much you pay in taxes, how you save, and how you plan for the future. A major tax bill has already made its way through the House and is now moving through the Senate.
While nothing is final yet, there’s a strong chance that many of these proposals will pass soon — which means now is the time to understand what’s coming and how it could benefit you.
One of the biggest points is the likely extension of the lower tax rates that were first introduced by the Tax Cuts and Jobs Act back in 2017.
Originally set to expire soon, these lower rates may now be extended and some could even become permanent. If passed, this means many taxpayers could continue to see a lower overall tax burden for years to come.
In addition, the higher standard deduction may stay in place or increase, giving more people a bigger break when filing.
Families stand to benefit in several ways. There’s talk of expanding the child tax credit and dependent care credits, plus continuing or improving deductions that help offset child care costs.
New options like the Trump Account, a flexible savings plan similar to an IRA, could help parents and young adults save for education, starting a business, or buying a first home.
Seniors may also see changes that help protect Social Security income from taxes, along with possible adjustments to personal exemptions.
Business owners have a lot to pay attention to as well. Proposed updates to Section 199A could strengthen the qualified business income deduction, helping pass-through businesses hold onto more of their earnings.
The bill also touches on estate tax exemptions, potentially raising the threshold so fewer estates owe taxes when wealth is transferred to the next generation.
And Opportunity Zones, special areas that encourage investment and offer tax breaks, could be expanded and extended for another 10 years, creating new ways to grow wealth while helping local communities.
There’s much more in this bill, including possible changes to deductions for charitable donations, state and local tax deductions, mortgage interest, and even new rules for tips, overtime pay, and moving expenses.
While some ideas may still change, the key takeaway is this: it pays to plan ahead.
Understanding what’s proposed now can help you and your family prepare, adjust your strategy, and take full advantage of new savings and tax opportunities once the final bill is signed.
Stay Informed — Watch the Full Breakdown
📽️ We’ve included the full video from our recent session below, where we dive deeper into all the key provisions and what they could mean for you, your family, or your business.
If you’d like help reviewing your specific situation or planning next steps, we’re here to guide you through it.
Reach out anytime, let’s make sure you’re ready for what’s ahead.
