Category: Taxes Made Simple
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The estate and gift tax exemption is now a permanent $15 million, or $30 million per couple
The amount a person can pass to heirs free of federal estate and gift tax has jumped to $15 million, and — unlike the last big increase — it is now written into law without an expiration date. For a married couple, careful planning can shield up to $30 million. The change took effect January…
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Families can deduct up to $10,000 in car-loan interest on U.S.-assembled vehicles through 2028
A new federal tax break lets many households write off the interest they pay on a car loan — up to $10,000 a year — as long as the vehicle was assembled in the United States and bought new for personal use. The deduction comes out of the tax law signed in July 2025, and…
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A new law seeds a $1,000 government-funded savings account for babies born through 2028
Every U.S. citizen baby born over a four-year stretch is now in line for a $1,000 head start on saving, courtesy of the federal government. The One Big Beautiful Bill Act created a new kind of tax-advantaged investment account for children, nicknamed a “Trump account,” and seeded it with a one-time federal deposit. For families…
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The IRS offers free online filing and free in-person help for most working households
Millions of families pay a preparer $150 to $300 or more to file a return they could have filed for nothing. The IRS backs several free options, both online software and in-person help from trained volunteers, aimed squarely at working households, retirees, and anyone with a straightforward return. Knowing which door to walk through is…
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The state and local tax deduction cap jumped to $40,000 under the new law
Homeowners in high-tax states have spent years bumping up against a $10,000 ceiling on what they could deduct for state and local taxes. The One Big Beautiful Bill Act lifted that ceiling to $40,000 beginning in tax year 2025, a fourfold increase that reshapes the math for a specific slice of taxpayers. The change is…
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Tipped workers can now deduct up to $25,000 in tips through 2028
Servers, bartenders, hairstylists, and other tipped workers have a new line on their federal tax return that did not exist a couple of years ago. Under the tax law enacted last year, eligible workers can deduct up to $25,000 of qualified tips each year, temporarily removing that income from their federal income-tax calculation. It is…
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Dozens of states offer senior property-tax freezes or rebates worth up to about $1,500 — check your state’s deadline
More than 30 states run programs that can freeze or cut property taxes for older and lower-income homeowners — and in several, the relief is worth $1,000 to $1,500 or more a year. They go by different names: property-tax freezes, homestead credits, and “circuit breaker” rebates. Each has its own income limits and, crucially, its…
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Trump’s $2,000 tariff-dividend check is still only a stalled proposal
The $2,000 “tariff dividend” check that President Trump has floated remains just a proposal, and the Senate bill that would create a version of it has stalled. No checks have gone out, no agency is sending money, and there is no application to file, because the payment does not exist. For households that have seen…
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Free IRS-backed VITA tax help is open to households under about $67,000
Households earning roughly $67,000 or less can have their tax return prepared and filed for free by IRS-certified volunteers, no software subscription and no paid preparer required. The program is called VITA, and along with a companion program for older filers, it prepares millions of returns every year at libraries, community centers, and other local…
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The child tax credit is now a permanent $2,200 per child, with up to $1,700 paid back as a refund
The child tax credit is now locked in at $2,200 per qualifying child, made permanent by the 2025 tax law, with up to $1,700 of it available as a refund even to families who owe little or no federal tax. Making the amount permanent ends years of uncertainty in which the credit’s size was set…