With debates intensifying over the extension of the 2017 tax cuts and the potential implementation of new tax policies, many Americans are left questioning how these changes will affect their finances.
Whether you’re planning for a major purchase or simply trying to stay on top of your expenses, here are five ways Trump’s tax plans could influence your financial situation.
1. Lower Income Tax Rates Could Save You Money
One of the key elements of Trump’s 2017 tax cuts was reducing marginal income tax rates, which benefited millions of Americans. If these rates are extended, you might continue to see lower federal income taxes deducted from your paycheck.
However, if Congress doesn’t act, these cuts are set to automatically expire, potentially leading to higher taxes for many households starting next year.
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2. A Bigger Standard Deduction
The 2017 tax cuts nearly doubled the standard deduction, simplified filing for many and reduced taxable income. For instance, a married couple filing jointly can deduct $29,200 in 2024 without itemizing.
Extending this provision could keep more money in your pocket. On the flip side, if it expires
