02/15/2026
Hello FBFF, We are praising the Lord at all times! LFC Wealth Wise Moments;
Wealth Wise - 2025 A Year In Review - Please see the list and highlights of topics we covered over 2025
JANUARY – MARCH: Wealth Wise - 21 Identity Thefts in 2024
Anything that has connection to Internet is prone to threats. As per the saying, “There are two types of parties one that has been hacked and another that doesn’t know it has been hacked.” This statement throws light on the fact that we are always prone to vulnerabilities. It depends upon who is least vulnerable. Unless we don’t identify these threats over the internet then won’t be able to take steps to protect our computer system against these threats. Any threat on IoT is backed by a purpose. The purpose may differ depending upon intruder’s target:
· Since IoT enabled devices are used and operated by humans, an intruder may try to gain unauthorized access to the device.
· By gaining access to wireless IoT devices, the intruder may get hold of confidential information.
· IoT devices require low power and less computational capability. Due to this, they cannot afford to have complex protocols. Therefore it becomes an easy target for intruders.
The Internet of Things (IoT) has transformed our lives with handy internet-connected devices that make our lives easier. From smart TVs to fitness trackers, these IoT devices have also become additional access points for hackers and identity thieves.
IoT identity theft occurs when a fraudster exploits a security flaw in one of these devices in order to gain access to your personal data, such as your email account, credit card information, or date of birth. Because of this, it's important to always be cautious about what information you link to these devices.
· Dishwashers
· Refrigerators
· Smart TVs
· Smart watches
· Cars and trucks
· Heating and cooling systems
· Fitness machines and trackers
· Smartphones
· Smart wearables
· Smart home automation
· IoT medical devices
· Industrial and logistics IoT devices
· Point of sale devices
· Personal transportation devices
Warning signs of IoT identity theft include:
· Unfamiliar login notifications
· A lost or stolen IoT device
· Strange activity on your smart device
· Unauthorized password changes
Protection tip: Use a secure password, and always keep your device's firmware up to date for the latest security patches.
APRIL - 20 Tips for Weathering a Recession
Depending on who you ask, it’s not a question of if, but rather when, the United States will enter a recession in the near future. Certainly, many economic indicators are pointing in that direction.
While no one can say for sure what the future will bring, it’s best to heed the warning signs. Here are some of the best tips from Forbes Advisor and finance experts to help you prepare for a recession.
Table Of Contents
· Budgeting and Debt
· Saving Money
· Investing During a Recession
· Tips For Workers and Retirees
· Control Your Housing Expenses
· Save On Healthy Living
Manage Your Money Wisely
Your chances of successfully weathering a recession are higher if your financial house is in order. However, if you’ve been taking a lax approach to your money, start with these essential tasks.
1. Create a Budget
Having a budget is money management 101, and something that can benefit every household. It gives you a “good sense of what it costs to run your life.
Budgeting doesn’t have to be difficult, and it can be accomplished in seven simple steps that cover the process of adding up your expenses and income and then reconciling the two. There are also multiple ways to implement a budget, so explore your options to determine which one appeals to you most.
2. Eliminate As Much Debt As You Can
As interest rates climb, so too does the cost of debt. And if you’re spending a large portion of your income on credit card and loan payments, that leaves little to save for a rainy day. Eliminating debt is an important part of how to prepare for a recession, and a debt snowball can be an effective method to use.
Of course, not everyone will be able to get out of debt before a recession hits. “If you do carry a balance, it’s good to (find) a low-interest, fixed-rate offer. However, offers like this are typically reserved for applicants with very good credit.
Consolidating debt to a fixed rate loan may save money on interest and can also make for predictable monthly payments, which can help with budgeting during a recession.
3. Create an Emergency Fund
Recessions are often marked by job losses, so now is the time to shore up your cash reserves.
“Think about giving yourself [enough savings to cover] a couple of payrolls. If necessary, consider pulling back on your 401(k) contributions temporarily to build up an emergency fund
4. Pare Down Expenses
There are many ways to save money without affecting your lifestyle. Those strategies include shopping for less-expensive cell phone service, bundling insurance policies and using bill negotiation apps. Also, don’t forget all the services you signed up for but never use. Do an audit of credit cards for recurring subscriptions.
Many households pay for multiple streaming services, automatic deliveries and online or offline memberships. Eliminating a handful of these recurring charges could easily reduce your monthly bills by $100 or more.
5. Rethink Big Purchases
Money saving tips often focus on eliminating small expenses, such as a morning latte, but this approach can only save you so modest cash. Instead, consider whether they can skip a major purchase such as a second home or new car. Think twice before buying something such as a boat or timeshare that will result in ongoing bills. Likewise, skip a luxury vacation or other expense that could wipe out your savings account.
6. Learn to Cook at Home
Food is often one of the largest discretionary expenses in a household budget. And much of the spending growth in this category is fueled by dining out. The federal Bureau of Labor Statistics found that American spending on food away from home—which includes takeout and delivery— jumped 27.6% in 2021 compared to the previous year.
Eating at home can be cheaper than takeout or restaurant fare, and brushing up on your cooking skills could save you hundreds, if not thousands of dollars during a recession. You can eat healthy on a budget if you know the right tips and tricks.
Investing During a Recession
A recession typically means a declining stock market, so you need to be smart about how you manage your investments in the next few years.
7. Move Your Savings
The silver lining to rising interest rates is that many savings products are now paying more. “Banking savings is actually competitive again,” Stanich says.
She has seen high-yield savings accounts paying out 3% interest and CDs with rates of 4%. I bonds, which have a rate that is adjusted every six months to account for inflation, are currently earning nearly 7%.
If you have money languishing in an account that isn’t earning interest, now might be the time to move that cash elsewhere. You won’t get rich off these savings products—and be aware there are withdrawal restrictions on CDs and I bonds—but they are a safe way to grow your balance during a recession.
8. Convert Retirement Funds to Roth Accounts
In the event you’re laid off or have your hours reduced, see it as an opportunity to reorganize your retirement savings. Low-income years are the perfect time to complete a Roth conversion.
“You’d rather have your money in a Roth account where it will grow tax-free,” Smith says.
Moving money from a traditional IRA or 401(k) account to a Roth account means you’ll have to pay regular income tax on the amount converted. A low-income year could mean you’ll pay those taxes in a lower bracket.
9. Stay the Course With Investments
While you may want to reorganize which type of account you keep your money in, it’s usually best not to make dramatic changes to an investment strategy during a recession. In fact, the worst thing you can do is pull money out of the market during a downturn.
“The problem is you have to be right twice,” Smith says. “You have to be right when you get out and right when you get back in.”
If you cash out investments during a stock market correction, you could lock in your losses. Even if you manage to withdraw money prior to a plunge, you could miss the rebound. In fact, some of the best trading days to be in the market—when investments grow the most—happen right after the worst days.
10. Consider Tax-Loss Harvesting
If you do need to sell investments during a recession, consider those that will allow for tax-loss harvesting, Smith advises. This strategy involves selling equities for less than you purchased them and then writing off the loss on future tax bills.
Recession Tips for Workers and Retirees
When the economy shrinks, there’s always the risk that employers will shed jobs. Here are some tips for those who are in the workforce and those who are getting ready to leave it.
11. Make Yourself Indispensable at Work
There’s been a lot of talk lately about “quiet quitting,” the practice of doing just the bare minimum at work. However, if you think your job might be on the line during a recession, you want to take the opposite approach: Become the type of employee who is a team player and always ready to do their part.
In the event you are laid off, don’t leave work without asking your employer key questions such as when your benefits will end and whether you can get a letter of recommendation.
12. Delay Your Retirement
If you were planning to retire next year, it may be better to push your final day back until the economy rebounds. Retiring in a down market isn’t so wonderful.
Once you leave the workforce, you may need to dip into your retirement funds to pay bills, and making withdrawals early in retirement during a down market could leave you strapped for cash later in life. Learn about sequence of returns risk and then decide if you can stomach another year or two in the workforce.
Timing matters
At issue here is a phenomenon known as sequence-of-returns risk. "Sequence" refers to the fact that the order and timing of poor investment returns can have a big impact on how long your retirement savings last.
13. Start Social Security Early
Some people can’t—or won’t—delay retirement. In that case, consider starting your Social Security benefits early if you’re at least age 62.
“Starting Social Security early might reduce pressure on investments.” Those monthly payments might be enough to cover essential bills or at least reduce the amount that needs to be withdrawn from your retirement accounts each month.
Taking Social Security early does mean you’ll receive a reduced benefit, so be sure you understand how payments will be affected if you start your claim before full retirement age (67).
14. Start a Side Hustle
Working part time is another way to reduce your need to pull money from retirement accounts during a recession. It doesn’t have to be a traditional job, either. There is no shortage of apps, from DoorDash to TaskRabbit, that allow people to make money doing things like delivering fast food meals and assembling furniture on their own schedule.
In fact,
side hustles can be a smart move for anyone who is trying to boost savings or reduce debt before a recession. Money-making options include many jobs that can be done online or from your home.
Controlling Your Housing Expenses
Your house and mortgage are likely your biggest expenses. During a recession, use these tips to save money.
15. Don’t Move Right Now
Many experts agree: A recession doesn’t equal a housing crisis. But that doesn’t mean you should plan a move right now either, especially if you’re a retiree.
“Downsizing is not the obvious thing to do anymore.” People often move in retirement to reduce expenses, but rising mortgage rates may mean you end up with a smaller house and a larger mortgage payment.
Still, not everyone is in a position to delay a move. If you do need to buy a house, be sure to compare mortgage rates to find the best offer.
16. Get Rid of Your PMI
Anyone who buys a home with a down payment of less than 20% probably has private mortgage insurance (PMI) attached to their loan. This insurance can add hundreds of dollars to your monthly payment.
Fortunately, lenders are required to cancel PMI once you have 20% equity in your home. Normally, this would be best accomplished by making extra payments toward the loan’s principal. However, the recent rapid increase in housing prices could be enough to increase your equity to that level without any extra payments.
You may have to pay for an appraisal to prove that’s the case, but it could be money well spent if your PMI payments are significant.
17. Reduce Your Energy Costs
Weatherizing your home is another smart strategy for those preparing for a recession. Sealing windows, changing HVAC filters and clearing out gutters can all save on energy bills and help avoid expensive home repairs in the future.
If you think you’ll have trouble covering your energy costs during a recession, take time to research what assistance is available. Utility companies, the government and nonprofit organizations may all have programs available to reduce costs for those who are income eligible.
Recession-Proof Your Health
You may not think of wellness in financial terms, but staying healthy can have a profound impact on your money situation. Getting sick can mean lost income and high medical bills.
18. Reevaluate Your Insurance Coverage
Each year, take advantage of your open enrollment period to review your health insurance coverage and make changes as necessary.
If you’re on a federal marketplace health insurance plan, open enrollment takes place in the fall. If you get health insurance through work, your open enrollment period could be at any point in the year; ask your human resources department for details.
“One thing that employees can do that makes a material difference is to review benefits,” Mosher says. If you are married, do this together with your spouse to ensure you aren’t duplicating coverages. Mosher notes, “You’d be surprised how many couples are paying for separate insurance.”
Also, see if you signed up for any voluntary benefits in the past that you no longer need. For instance, maybe you are paying for pet insurance through work, but your four-legged friend crossed the rainbow bridge last year. Cancel anything not needed and redirect that money toward savings or paying down debt.
19. Open an FSA or HSA
You could pay for your medical expenses with pre-tax dollars if you have a health savings account (HSA) or a flexible spending account (FSA). Each has their own rules, so make sure you understand the differences. Then, assuming you are eligible, open one of these accounts to save money on medical care next year.
If you have children in day care, many employers also offer FSAs for dependent care. Using these accounts is another way to save money during a recession, but you may want to check with a tax professional to determine whether the FSA or the child and dependent care tax credit is better for your situation. You can’t use both.
20. Make Wellness a Priority
Finally, keep the stress of a recession at bay by making your health a priority. “You really have to take care of yourself,” Mosher says. Many employers offer their workers wellness programs intended to improve physical and mental health, and Mosher says these are often underutilized.
Otherwise, look for easy self-care ideas that can help you cope with difficult economic situations. Going for a walk in the woods, journaling for a few minutes each morning and connecting with friends on a regular basis are all ways to stay grounded in uncertain times.
MAY - JUNE: How Can Financial Wellness Affect Your Health?
The link between your mental health and financial wellness is large. Experts have found that stress from money problems tends to be chronic, or long-lasting. They also found that financial issues are the top source of stress for most people – even more stressful than politics, family, and work.
Low financial wellness and literacy can lead to high financial stress. Just like with other stressful things in life, this type of tension can cause you to become anxious, depressed, and overwhelmed.
· Related: Major Depressive Disorder: How Advanced Treatment Works
Many people with previous mental health disorders also say that financial troubles make their mental health worse. Similarly, a study found that a large majority of people learned that worsened mental health made their financial wellness worse, in turn.
Mental health and financial wellness work together in a cycle. If one isn’t well, it usually affects the other. Stigmas around debt or poor financial wellness can cause people to not want to ask for help.
If you get to a point where you need to cut back on essentials, like food or heating, mental health impacts can become severe. This makes it even more difficult to recover from mental health disorders. Experts found that people in severe financial trouble are three times more likely to think about su***de. Without proper access to mental health care, it’s difficult to seek help.
How Does Financial Wellness Affect Your Physical Health?
If you have high levels of financial stress, you’re more likely to notice it affect your physical health. This type of pressure can lead to issues like:
· Headaches or migraines
· A weakened immune system
· High blood pressure
· Issues with your digestive system
· Muscle tension
· Heart arrhythmia
· Sleep problems
If your financial wellness is low and you have high financial stress, you’re twice as likely to have poor overall health. Experts also found that you’re four times as likely to get some sort of condition.
Often, these new health issues lead people to spend even more money on medical needs. If you’re already in a tight financial situation, this will just add to the stress.
Financial stress can also lead to unhealthy coping mechanisms. You might be more likely to overeat, use alcohol or drugs, and smoke if you’re stressed about money. But these things only worsen both situations. They lead to further health issues and often can create even more financial stressors.
How Can You Improve Your Financial Wellness?
Your mental and physical health can improve from stronger financial wellness. It’s important that you take the steps to improve your financial situation:
Look for spending patterns. Review your spending and saving habits. Compare this to your current financial situation and decide if it fits your means. Look for a pattern in how much and when you spend money. Decide what expenses you can continue and what you can cut out.
Ask others for help. There are a ton of resources that can help you become financially well. Take lessons from books, classes, or a trusted mentor to learn more ways to manage your finances.
Create a budget. Write down all of your expenses and make a budget based on what you actually require. Track your spending so that you stick to this.
Look for easy self-care ideas that can help you cope with difficult economic situations. Going for a walk in the woods, journaling for a few minutes each morning and connecting with friends on a regular basis are all ways to stay grounded in uncertain times.
JUNE: How Will Tariffs Impact You?
HOW TARIFFS ACTUALLY WORK
Workers assemble washing machines on the production line in Qingdao in east China's Shandong province. To see the direct impact of tariffs on prices, look no further than washing machines.
In 2018, President Donald Trump enacted tariffs ranging from 20% to 50% on imported washing machines. His administration purported that the tariffs would protect American industry—and such a move did add around 1,800 jobs domestically, according to a study in the American Economic Review.
But each of those jobs came with an average annual cost to consumers of over $815,000.
That’s because the report found that the tariffs raised the price of washing machines and dryers (which were not subject to such a tax, but are usually bundled with washers) by about $86 and $92 per unit, respectively. In total, the tariffs cost consumers just over $1.5 billion annually.
EXPECTED IMPACTS
Trump’s China tariffs are expected to impact a wide variety of consumer goods, from electronics to toys and shoes.
Around 80% of toys imported to the U.S. come from China, the Toy Association trade group told Forbes, and around 37% of all footwear imports—totaling $9.5 billion—to the U.S. in 2023 came from China, according to the U.S. International Trade Commission.
And for millions of price-conscious shoppers who rely on low-cost Chinese retailers like Temu and Shein, the tariffs will also close a little-known loophole that allows merchandise under $800 to enter the U.S. without being taxed.
Many electronic devices like iPhones are assembled in China, a core concern for Apple investors as its stock fell 3% the day before the tariffs went into effect.
Though the tariffs on Canada and Mexico were delayed for 30 days, Trump indicated that they would be needed and they have the potential to wreak havoc on a highly integrated North American supply chain.
Consumers are already conscious about grocery prices, and the U.S. relies heavily on the two countries for fresh produce. Canada is the largest exporter of meat to the U.S. Natural gas and oil from Canada would be subject to a 10% levy, and oil traders and consumers would pay the price. The price of gas is likely to increase up to 40 cents a gallon within days of tariffs on Canada and Mexico, according to Patrick De Haan, GasBuddy’s head of petroleum analysis. Canada sends about 20% of the oil used by Americans.
Tariffs on the two countries would also hit the auto industry hard, as companies like General Motors and Ford rely on Canadian and Mexican companies for parts. Experts estimate the average price of a new car will increase by $3,000, as 22% of all vehicles sold in the U.S. are imported from the two countries, per S&P Global.
Trump’s tariff proposals would cost middle-class U.S. households $1,700 in increased taxes each year, as projected by the nonpartisan think tank Peterson Institute for International Economics. So how do you prepare? Consumers can try shopping at discount or bulk retailers like Costco or Sam’s Club, and for groceries, consider your local farmer’s market, though increased demand could drive up those prices, too. If you’re a small business owner, it’s probably a good time to refresh research on your supply chain, taking tariffs into account when considering pricing.
AUGUST - SEPTEMBER: 10 Fall Money-Saving Strategies
10 Fall Money-Saving Strategies
Fall is not just a time for pumpkin spice lattes and cozy sweaters; it’s an ideal season to fortify your financial well-being. By implementing these 10 fall-saving strategies, you can harness the changing seasons to harvest financial security.
1. Rake in Extra Income
Fall can be an excellent time to explore additional sources of income. Consider freelancing, consulting, or part-time work to supplement your regular earnings. The extra money can be directed toward savings or debt reduction.
2. Budget for the Holidays
The holiday season follows closely on the heels of fall, and it’s notorious for straining budgets. Start budgeting early to avoid overspending. Allocate funds for gifts, travel, and holiday festivities to prevent a financial hangover in the new year.
3. Review and Adjust Goals
Take a moment to review your financial goals. Are you on track? Do you need to adjust your savings targets? Fall is a great time to recalibrate your financial plan and make any necessary changes.
4. Cut Energy Costs
As the weather cools, consider setting your thermostat to an energy-efficient temperature. Or better yet, avoid turning on the air-conditioner altogether! These actions can result in significant savings over the season.
5. Fall Cleaning
Fall cleaning isn’t just about tidying up; it’s an opportunity to declutter and potentially earn extra cash. Sell items you no longer need through garage sales, online marketplaces, or consignment shops.
6. Maximize Retirement Contributions
If you have a retirement savings plan, like a 401(k) or IRA, take advantage of the fall season to maximize your contributions. Increasing your retirement savings now can have a substantial impact on your long-term financial security.
7. Review Insurance Policies
Fall is a great time to review your insurance policies. Make sure you have adequate coverage for your home, car, and health needs. By shopping around, you may find better deals that can lower premiums.
8. Plan for Year-End Expenses
Consider any year-end expenses you might encounter, such as property taxes, insurance premiums, or medical costs. Budget for these expenses in advance to avoid last-minute financial stress.
9. Automate Savings
Set up automated transfers to your savings account. By automating your savings, you ensure that a portion of your income is regularly set aside, making it easier to reach your financial goals.
10. Invest Wisely
Looking for a low-risk investment with guaranteed returns? Consider opening a Certificate. No matter what the market does, your rate will remain locked and your funds federally insured.
OCTOBER: October Is Financial Planning Month: Here’s What To Know
With October being financial planning month, it gives us a prime opportunity to refocus our attention on our financial well-being. This month serves as a reminder to take a step back, evaluate our financial goals, and make necessary adjustments to secure and realign our financial plan and journey. In this blog, we’ll explore why Financial Planning Month is a great time to revisit your plan and what financial planning items to focus on.
1. Setting Clear Financial Goals
October presents an excellent chance to set or refine your financial goals. Whether you’re looking to build an emergency fund, pay off debt, save for retirement, or invest in your dream home, setting specific, measurable, achievable, relevant, and time-bound (SMART) goals is essential.
2. Reviewing Your Current Financial Situation
To effectively plan for your financial future, it’s crucial to have a clear understanding of your current financial situation. Review your income, expenses, debts, and investments. Take the time to create or update your budget, assess your net worth, and review the bigger picture. Understanding where you stand financially is the first step toward making informed decisions. Remember that open enrollment season is right around the corner, so evaluate your blin spots or work with an advisor to help spot what’s missing and where you can improve.
3. Budgeting
With the holiday season just around the corner, October is the ideal time to start budgeting for holiday expenses. By planning ahead and setting a budget for gifts, travel, and entertainment, you can avoid overspending and prevent post-holiday financial stress.
4. Tax Planning
As the year draws to a close, October is an excellent time to start thinking about tax planning. Work with your financial advisor in conjunction with your CPA to run tax projections and consider ideas to minimize your tax liability. Being proactive in your tax planning can lead to substantial savings when tax season arrives.
5. Retirement Planning
Retirement planning is a critical aspect of financial planning. October serves as a reminder to assess your retirement savings goals and contributions. Whether you’re just starting your retirement savings journey or nearing retirement age, use this time to evaluate where your contributions are for the year and make the applicable changes.
Financial Planning Month serves as a timely reminder to take control of your financial future. By setting clear financial goals, reviewing your current financial situation, budgeting for the holidays, and addressing tax and retirement planning, you can make meaningful strides in your financial life. Consider working with a financial professional to help seamlessly approach this financial reset and evaluation. If you have any questions on how to get started, email [email protected].
MONEY SMARTS
Make a budget. Review the last few months of expenses and cut expenses where you can. Reduce meals out and luxury items. Memberships and drive-thru coffees add up.
Pay bills on time. Late fees and penalties result in extra costs and harm your credit.
Start saving. A little every month becomes a habit quickly. If your employer offers a 401k with a matching benefit, contribute to the maximum allowed. For every dollar you don't contribute to the matching limit, you're throwing away money.
Sell what you don't use anymore. If you have things collecting dust, taking up space or otherwise not being used, get rid of it. It may be worth something. Whether it's value is in recycled metal or the eye of the beholder, it doesn't matter.
Can't sell it? Donate. Qualified donations are tax deductible. Don't forget to ask for a receipt and claim it on your tax return.
See a financial planner. They will help you with your goals and set you on the path to success.
OCTOBER - DECEMBER: 2025 Federal Tax Brackets and Standard Deduction: What Changed?
The 2025 tax year brings some of the biggest adjustments in years to the federal tax brackets and standard deduction, plus important changes to the child tax credit, payroll tax thresholds, and capital gains bands. These updates apply to income you earn in 2025 and report on the return you file in 2026.
Below is a clear breakdown of what changed, who benefits, and how to use these rules in your planning with Nguyen & Associates, CPA.
Overview: Why the 2025 Tax Updates Matter
The 2025 rules are driven by a combination of IRS inflation adjustments and new federal legislation that locked in the seven tax rates (10%, 12%, 22%, 24%, 32%, 35%, and 37%) and significantly raised the standard deduction for all filing statuses.
For many households, more income will now fall into the 0% and lower brackets, which means less tax on the same nominal income.
At the same time, new bonus deductions and credit rules add complexity. Some taxpayers will see clear savings. Others will see little change, especially if their income is too high for new benefits or already low enough that they owed little federal income tax to begin with.
2025 Standard Deduction: Bigger Shield From Tax
The standard deduction is the amount of income you can earn before you owe federal income tax, assuming you do not itemize. For 2025, the standard deduction is:
Filing status
2025 standard deduction
2024 standard deduction
Change
Single
$15,750
$14,600
+ $1,150
Married filing jointly
$31,500
$29,200
+ $2,300
Married filing separately
$15,750
$14,600
+ $1,150
Head of household
$23,625
$21,900
+ $1,725
The jump is meaningful. For example, a married couple with $90,000 of taxable wages and no itemized deductions will see $31,500 of that income shielded from federal income tax before brackets apply.
Extra Standard Deduction for Seniors and Blind Taxpayers
On top of the base standard deduction, taxpayers who are age 65 or older or blind can claim additional amounts:
· Single or head of household, blind or 65+: + $2,000
· Single or head of household, blind and 65+: + $4,000
· Married filing jointly or separately, blind or 65+ (per person): + $1,550
· Married filing jointly or separately, blind and 65+ (per person): + $3,100
New law also created a separate temporary $6,000 bonus deduction for taxpayers age 65+ that runs from 2025 through 2028. This can stack on top of the existing age and blindness amounts, but it phases out for higher incomes. In broad terms:
· Phaseout begins once adjusted gross income (AGI) exceeds about $75,000 for single filers.
· For married couples filing jointly, the phaseout begins around $150,000 of AGI.
· The bonus deduction is fully gone at higher income levels.
Practically, many middle income retirees will see a large part of their Social Security and modest retirement income fully covered by the higher deductions, while affluent retirees will see only partial benefit.
Upside: More income is taxed at 0%, especially for retirees and middle income households.
Downside: The rules around bonus deductions and phaseouts are more complex, which makes it easier to miscalculate or under-withhold if you do not plan ahead.
2025 Federal Income Tax Brackets
The seven federal tax rates from the Tax Cuts and Jobs Act are now effectively permanent under recent legislation. Bracket thresholds for 2025 have been adjusted, and the structure is:
Single filers
Tax rate
Taxable income range
10%
$0 to $11,925
12%
$11,925 to $48,475
22%
$48,475 to $103,350
24%
$103,350 to $197,300
32%
$197,300 to $250,525
35%
$250,525 to $626,350
37%
Over $626,350
Married filing jointly
Tax rate
Taxable income range
10%
$0 to $23,850
12%
$23,850 to $96,950
22%
$96,950 to $206,700
24%
$206,700 to $394,600
32%
$394,600 to $501,050
35%
$501,050 to $751,600
37%
Over $751,600
Head of household
Tax rate
Taxable income range
10%
$0 to $17,000
12%
$17,000 to $64,850
22%
$64,850 to $103,350
24%
$103,350 to $197,300
32%
$197,300 to $250,500
35%
$250,500 to $626,350
37%
Over $626,350
Upside: Permanently locking in these brackets removes uncertainty about rate increases that were previously scheduled to kick in, and the widened bands help offset inflation.
Downside: Some credits and deductions were tightened or constrained elsewhere in the code, so not every taxpayer comes out ahead overall.
Other Key 2025 Tax Changes You Should Know
Child Tax Credit increase
For 2025, the Child Tax Credit is worth up to $2,200 per qualifying child, up from $2,000 in 2024. Up to $1,700 per child can be refundable through the Additional Child Tax Credit, subject to earned income and income phaseout rules.
This is good news for many families, but it is not universal. Higher income households will see the credit phased down, and very low income families may not benefit fully if they do not meet the minimum earned income thresholds.
Payroll tax thresholds
For 2025, payroll tax rules include:
· Social Security wage base: $176,100, taxed at 6.2% for employees and 6.2% for employers.
· Medicare tax: 1.45% on all wages, with an extra 0.9% Medicare surtax on wages above:
· $200,000 for single filers,
· $250,000 for married filing jointly,
· $125,000 for married filing separately.
For high earners and business owners with payroll, this means more wages are exposed to Social Security tax in 2025 than in 2024.
Long term capital gains thresholds
Long term capital gains still use three main federal rates: 0%, 15%, and 20%. For 2025, the 0% long term capital gains band applies up to:
· $48,350 of taxable income for single filers
· $96,700 for married couples filing jointly
· $64,750 for heads of household
Above those levels, gains generally move into the 15% band, and the top 20% rate applies at much higher incomes. High earners may also face the 3.8% Net Investment Income Tax on top.
Planning note: It is still possible to realize long term gains at a 0% federal rate if your total taxable income stays within these thresholds.
How These 2025 Changes Affect Different Taxpayers
The headline changes look simple: higher standard deductions, slightly wider brackets, a modestly larger child tax credit. The real impact depends on your situation.
· Middle income employees: You may see a smaller federal tax bill in 2025 vs. 2024 if your income did not jump significantly, thanks to a higher standard deduction and inflation-adjusted brackets. If your wages grew faster than inflation, the benefit can be muted.
· Families with children: A higher child tax credit and bigger standard deduction are positives, but phaseouts and refundable limits still leave some lower income and mixed status families under-served.
· Retirees and seniors: The combination of higher standard deduction, existing age and blindness additions, and the new senior bonus deduction may reduce or eliminate tax on modest retirement income. More affluent retirees will see less benefit because of phaseouts.
· Business owners and high earners: Higher Social Security wage bases and unchanged 37% top rates keep the effective burden high at the top. At the same time, stable brackets and a clear child tax credit structure help with multi year planning.
The key point: the 2025 rules create planning opportunities, but they do not guarantee a tax cut for everyone.
Planning Ahead: How Nguyen & Associates, CPA Can Help
With brackets, deductions, credits, and payroll thresholds all moving at once, guessing your 2025 tax outcome is risky. A structured plan can turn these rule changes into real savings instead of surprises.
· Bracket management: Estimate your 2025 taxable income early and decide whether to accelerate or defer income and deductions to stay in a target bracket.
· Withholding and estimates: Update Form W 4 and quarterly estimates to reflect the higher standard deduction and any changes in credits so you avoid a large balance due or an unnecessary refund.
· Retirement contributions: Use pre tax retirement plans and HSAs to keep income in lower brackets and to qualify for 0% capital gains where possible.
· Senior and Social Security planning: Coordinate the new senior deductions with timing of Social Security, pension withdrawals, and Roth conversions so you are not wasting deductions in low income years or triggering needless phaseouts.
· Capital gains harvesting: Map your realized and unrealized gains against the 0% and 15% thresholds. In some cases, realizing gains in 2025 can lock in low rates and reset your basis.
Nguyen & Associates, CPA uses detailed projections, not rules of thumb, to show clients how the 2025 rules affect both their current tax and long term plan.
Key Takeaways
· The 2025 standard deduction is significantly higher across all filing statuses, which pushes more income into the 0% range.
· The seven federal tax brackets remain in place, with adjusted thresholds that help offset inflation.
· The child tax credit, payroll tax caps, and capital gains thresholds also changed and can either cut or raise your total tax, depending on your profile.
· New senior deductions offer meaningful relief for many retirees but come with income limits and more complexity.
If you want to see exactly how these 2025 tax changes affect you or your business, consider a structured tax planning session before year end.
Nguyen & Associates, CPA can model your 2025 tax under the new brackets, standard deduction, and credits, and then help you choose practical steps to keep more of what you earn.
Disclaimer: This article is for general information only and is not tax, legal, or investment advice. Always review your specific situation with a qualified tax professional.
DECEMBER: Overview: Why the 2025 Tax Updates Matter
Eligible Charitable Contributions
Cash Donations: You can deduct cash contributions made to qualified charitable organizations. For 2025, individuals may deduct cash contributions up to 100% of their adjusted gross income (AGI) for qualified contributions.
Clothing and Household Goods: Gently used clothing and household items (like furniture, appliances, and electronics) are deductible. Ensure these items are in good condition or better to qualify for a deduction.
Vehicles: Donating a vehicle can also provide a tax deduction. The deduction amount is generally based on the sale price of the vehicle by the charity, or its fair market value if the charity uses it for its operations.
Non-Cash Donations: Other non-cash items, such as stocks, bonds, or other appreciated assets, can be donated. These donations are typically deductible at their fair market value, subject to certain limits.
Food and Inventory: Businesses can also donate food inventory and receive enhanced deductions under specific rules, which can be beneficial for both the business and the charity.
Important Considerations
Documentation: To claim deductions, keep proper records. For cash donations, a bank record or written acknowledgment from the charity is required. For non-cash donations over $500, you must file Form 8283 with your tax return.
Qualified Organizations: Ensure that the charity is recognized by the IRS as a qualified organization to receive tax-deductible contributions. Donations to individuals or political organizations do not qualify.
By understanding what items are eligible for donation and keeping accurate records, you can maximize your tax deductions for charitable contributions in 2025. Always consult with a tax professional for personalized advice and to ensure compliance with current tax laws.
