Trump’s New Tax Rules: The Hidden Wealth Benefit Most People Will Miss
Published: 2025-07-31
Status:
Available
|
Analyzed
Published: 2025-07-31
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Income tax rate for the bracket up to $197,000 will be 24% under the new plan.
"The fourth bracket is up to $197,000, but it's only going to be taxed at 24%, not 28%."
Pending
The fifth income tax bracket will be taxed at 32% and extend up to $4 million.
"The fifth bracket is going to be at 32%, not 33%, and it's only going to go up to a4 million, not the $544,000."
Pending
The income tax bracket taxed at 35% will extend up to $626,000.
"The next bracket is going to stay at 35%, but it's going to go all the way up to $626,000."
Pending
The top income tax bracket will be 37% for income earned above $626,000.
"And the top tax bracket is not going to be 39.6%, 6% it is going to be at 37% and it's going to be for every dollar you earn above $626,000"
Pending
The standard deduction in 2025 will be $15,750 for single filers and $31,500 for married couples.
"In 2025, single tax filers will get a $15,750 standard deduction, and married couples will get a $31,500 standard deduction"
Pending
Seniors earning under $75,000 annually will receive an additional $6,000 deduction.
"if you're a senior and you make under $75,000 a year, you get to qualify for a $6,000 senior deduction as an additional deduction on top of this."
Pending
Individuals earning under $150k (single) or $300k (married) will be eligible for tax write-offs on overtime and tip income until the end of 2028.
"Between now and the end of 2028, if you earn money from overtime or from tips, you can get a tax write off on that if you make under $150,000 a year as a single person or $300,000 a year as a married couple filing jointly."
Pending
The tax write-off for tip income is capped at $25,000 annually, and for overtime income at $12,500 annually.
"you can write off up to $25,000 a year in tip income and up to $12,500 a year in overtime income, assuming that you meet the income thresholds."
Pending
Babies born between January 1, 2025, and December 31, 2028, will receive a one-time $1,000 contribution to a Trump account.
"If you are born between January 1, 2025 and December 31, 2028, you will be deposited $1,000 into this Trump account"
Pending
100% bonus depreciation is being reinstated, offering tax advantages for business owners and potentially others.
"This new tax plan is reimposing 100% bonus depreciation which is something that you can take advantage of if you are a business owner or even if you don't have a business yet if you understand how the tax code works."
Pending
A business purchasing $30,000 of machinery can claim a full $30,000 tax write-off in the current year due to 100% bonus depreciation.
"under this new plan, I can qualify for a 100% bonus depreciation. Meaning, if I use this machinery for my business, my factory, I can take a full $30,000 write off right now, which means I can spend $30,000 and get a $30,000 write off on my taxes"
Pending
A $100,000 G Wagon used 100% for a TikTok business can qualify for a full $100,000 tax write-off through 100% bonus depreciation.
"under this new tax plan, you can qualify for 100% bonus depreciation. So, if you use this G Wagon 100% just for your Tik Tok business, well, now you can qualify for a $100,000 write-off"
Pending
Expenses totaling $25,000 for a new podcast business can be fully written off in the first year due to 100% bonus depreciation.
"under this new tax plan, because you get to qualify for 100% bonus depreciation, assuming that you document all your expenses, you're doing all these expenses just for your business. Now you get to qualify for a new $25,000 full write off because you spent $25,000."
Pending
The 20% Qualified Business Income (QBI) deduction for small business owners, sole proprietors, and partnerships will be made permanent, extending beyond its original 2025 expiration.
"The 20% QBI, qualified business income write off, is arguably one of the most valuable tax deductions that small business owners, sole proprietors, and partnerships can qualify for. And it was set to expire at the end of 2025. But under this new tax plan, it is made permanent."
Pending
A small business with $100,000 in profit can take a $20,000 (20%) QBI deduction, reducing taxable income to $80,000.
"you get a 20% tax break for doing nothing except being a small business owner. So, for example, let's assume that you make $200,000 in revenue. Then you have your expenses. Whatever your expenses are, your payroll, your rent, your softwares, you have $100,000 in expenses, which leaves you with $100,000 of profit. ... you get to qualify now for a 20% tax write off. So, you take a 20% deduction, which in this case is $20,000, and now you get to tell the IRS, hey, my taxable income is $80,000."
Pending
The 20% QBI deduction is available without further questions up to $200,000 for single filers and $400,000 for married couples, with additional requirements beyond these thresholds.
"you get to qualify for this 20% QBI deduction, pretty much no questions asked, up to $200,000 a year for a single filer or $400,000 a year for married couples filing jointly. After that, you have to answer a few questions to see if you still qualify for this 20% write off."
Pending
Investment earnings up to $48,000 will be taxed at 0%.
"If you earn zero to $48,000 from your investments, you're going to pay 0% of that money in taxes."
Pending
Investment earnings between $48,000 and $533,000 will be taxed at 15%.
"If you earn between 48,000 to $533,000 now, you're going to be paying 15% of this money in taxes."
Pending
Investment earnings above $533,000 will have a maximum tax rate of 20%.
"And for every dollar you earn above $533,000, your top tax rate as an investor is 20%."
Pending
Historically, income taxes were 0% on earnings up to approximately $61,000 (in today's dollars).
"When the income tax was first passed in the United States, the way it worked is you would pay 0% in income taxes for every dollar that you earned between 0 and $3,000, which if we adjust this $3,000 for inflation, it's about $61,000 in today's dollars. So, if you earned under 61 grand, you'd be paying 0% of that money in taxes."
Pending
Historically, income taxes were 1% on earnings between approximately $61,000 and $10 million (in today's dollars).
"Then you'd be paying 1% of your income in taxes. For every dollar that you earn between $3,000 and $500,000, which if we adjust this half a million to today's dollars, this is approximately $10 million today."
Pending
Historically, the top income tax rate was 6% on earnings above approximately $10 million (in today's dollars).
"And that for every dollar you earned above $500,000, you'd be paying 6% of that money in taxes."
Pending
The new tax law, the One Big Beautiful Bill Act, is effective retroactively from January 1, 2025.
"It goes into effect retroactively. It goes into effect January 1, 2025."
Pending