Reported 1 day ago
President Trump's new tax legislation may enable approximately 40% of U.S. households to pay no federal income tax in 2025, particularly benefiting seniors, workers receiving tips or overtime, and families with children. The bill adds new deductions that could lower taxable incomes significantly, allowing some families, like a hypothetical couple with two children, to offset their tax liability entirely with increased child tax credits. However, potential caveats exist, such as additional local and state taxes that may rise to compensate for federal tax cuts.
Source: YAHOO