Trump's 2026 Plan To Cancel Your Income Tax Has Just Begun (5 Cuts You're Missing)

0:00 One year ago, President Trump signed the biggest

0:02 tax cut bill in the history of America.

0:05 And now your taxes are going to change in 2026.

0:08 Take a listen.

0:09 We have officially made the Trump tax cuts permanent.

0:13 That's the largest tax cut in the history of our country,

0:18 added to substantial other cuts,

0:20 which is going to you're going to see like a rocket ship.

0:22 You know, we're setting all sorts of economic records right now.

0:25 But this tax bill can only be great if it actually lowers your taxes.

0:29 And as a licensed attorney, who is not your attorney who keeps a copy

0:32 of the federal income tax code in his office,

0:34 I can tell you that the IRS is not going to tell

0:37 you how much or how little you should pay in taxes.

0:40 They let you figure that out.

0:41 If you pay too much money in taxes, they don't say anything.

0:44 But if you don't pay enough money in taxes, you get fined.

0:47 Well, this new Trump tax bill, which is now going into effect,

0:50 is about a thousand pages long,

0:52 and the media has covered some of the big changes.

0:55 no tax on tips, no tax on overtime,

0:58 and no tax on social security for our great seniors.

1:01 But there are still probably other tax opportunities

1:04 that you and your CPA might be missing.

1:06 And that's why in this video, I want to go over five of some of the biggest

1:10 tax opportunities through this tax bill that many people have overlooked.

1:14 That way, you can pay less money in taxes legally.

1:17 Now, to lay the foundation so we're on the same page,

1:19 let's start by talking about your income tax rates.

1:22 Because if this tax bill did not go through,

1:24 this is what your tax rates would have looked like.

1:26 Assuming that you were a single tax filer,

1:29 and I rounded these numbers to keep them simple.

1:31 If you were a single tax filer and you made between 0 and $12,000 a year,

1:35 you would pay 10% of the money in taxes.

1:37 For every dollar that you earn between 12 grand to $49,000,

1:40 you'd pay 15% of your money in taxes.

1:43 For every dollar between 49 grand and $120,000,

1:46 you'd pay 25% of the money in taxes.

1:48 Between 120 and $250,000, you'd pay 28% of the money in taxes.

1:53 Between 250,000 and 544 grand, you would have paid 33% of your money in taxes.

1:58 Between $544,000 and $546,000, you would have paid 35% of the money in taxes.

2:05 And for every dollar above $546,000,

2:08 you would have paid 39.6% of your money in taxes.

2:12 But this new tax law changed these numbers completely.

2:16 So, let me now diagram what your tax brackets actually look

2:19 like in 2026 based off of this new Trump tax plan.

2:22 Under this new tax plan, we saw two things change.

2:24 We saw the brackets change and we saw the dollar amounts change as well.

2:28 So, for every dollar that you earn between 0 and $12,000,

2:31 that's going to stay the same at 10%.

2:33 Again, this is assuming that you're a single tax filer.

2:35 And I rounded these numbers for simplicity.

2:37 Now, the tax rate for the next tax bracket

2:39 is at 12% up to $50,000 as opposed to $49,000.

2:44 After that, it's a 22% instead of 25% at $105,000 instead of $120,000.

2:50 Then it's 24% instead of 28% at a top

2:53 dollar amount of 2011 grand instead of $250,000.

2:56 Then in the next bracket, you're going to pay 32% of your money in taxes

2:59 for every dollar between $21,000 and $256,000 instead of $544,000.

3:06 Then you're going to pay 35% which is

3:07 unchanged up to $640,000 as opposed to $546,000.

3:13 and then your top tax rate is now 37% as opposed

3:16 to 39.6% at a top dollar amount of $640,000 and above.

3:21 The other part of the foundation that you want

3:23 to understand is the changes in the standard deduction.

3:26 This is the tax write off that everybody qualifies for no matter what.

3:30 And so in 2025, if you were a single tax filer,

3:33 your standard deduction was $15,750.

3:36 For married filing jointly, your standard deduction was $31,500.

3:40 Again, everybody qualified for this.

3:42 If this tax bill did not go through, the standard deduction would have changed.

3:47 It would have gone to $8,350 for single

3:50 tax filers and $16,700 for marrying filing jointly,

3:53 which means, yes, your standard deduction would

3:56 have fallen significantly without this new tax bill.

3:58 But now, with this new tax bill,

4:00 your standard deduction actually went up from 2025.

4:03 Now, if you're a single tax filer in 2026,

4:05 you will qualify for a $16,100 standard deduction.

4:09 Everybody gets that.

4:10 Or if you're married filing jointly, you will get a $32,200 standard deduction

4:15 that everybody qualifies for with anything else.

4:18 So this means that for the average person

4:20 with these new tax bills and with this new standard deduction,

4:24 the average person in America should be paying less money in taxes.

4:28 Now, you might be wondering, well, why do we need a standard deduction?

4:30 Why can't we just have lower tax rates?

4:32 That's a topic for a different video.

4:34 It has to be complicated because that's how accountants

4:37 and attorneys get to keep their jobs and the big salaries.

4:39 But let's talk about now some of the other deductions,

4:43 the other write- offs that you might be able

4:44 to qualify for that could help reduce your taxes even more.

4:48 Some of these are going to be less loan than others.

4:50 So, let me break it down one by one.

4:51 By the way, this is one of those reasons why it's so important

4:54 for you to be an investor because as you start to study the tax law,

4:58 you'll see that our tax system is designed to benefit

5:01 investors while you pay a lot more as an employee.

5:05 Why is that the case?

5:06 Well, that's what the tax law says.

5:08 And if you want to learn how to be an investor or be a better investor,

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5:42 Number one is changes in the salt cap.

5:44 So, this is for those of you that are homeowners,

5:46 especially if you live in a high tax state.

5:49 That's California, New York, New Jersey, Connecticut, Illinois, Massachusetts,

5:53 other states that have high state taxes,

5:55 you definitely want to pay attention to this.

5:57 Salt stands for state and local taxes.

5:59 And the idea here is if you own a house, you have to pay property taxes.

6:04 On top of that, if your state charges you a state tax, you have to pay that.

6:07 And if you have other local taxes, you have to pay those as well.

6:10 And before 2025, before this tax bill was signed,

6:13 the most of a deduction that you could get for the state

6:16 and local taxes and your property taxes was up to $10,000.

6:22 Which is why many people said, "You know what?

6:23 The salt deduction doesn't mean anything.

6:25 I'm just going to take the standard deduction because the standard deduction,

6:28 which I just talked about, was going to give you a bigger tax write off." Well,

6:32 through this new tax bill, the salt deduction changed.

6:35 It's no longer $10,000.

6:37 it has gone up to $40,000.

6:41 So, you can add up your property taxes,

6:44 you can add up your state taxes, add up your local taxes,

6:46 and now you can take a write- off

6:48 of up to $40,000 a year from your federal taxes,

6:52 which can be more than your standard deduction,

6:55 which means you have the ability to get a bigger tax write-off.

6:58 But there's a couple nuances that you need to know.

6:59 In order to qualify for the full $40,000 deduction,

7:02 you have to be making under $500,000 a year.

7:07 But this is an opportunity for many people

7:09 now to opt out of the standard deduction and get a bigger write off through

7:13 this itemized deduction by qualifying for the salt deduction,

7:17 assuming you're paying high property taxes,

7:19 high state taxes, and or high local taxes.

7:21 If you, your parents, or your grandparents are over the age of 65,

7:25 well, now you qualify for an additional $6,000 tax write off.

7:33 Why?

7:33 Because you are a senior over the age of 65 and that's it.

7:37 But to qualify for this additional $6,000 tax write-off,

7:40 you do have to meet a couple income requirements.

7:42 If you are a single tax filer, you have to be making under $75,000 a year.

7:46 And if you're married filing jointly,

7:48 you have to be making under $150,000 a year.

7:50 And to clarify, this $6,000 deduction for seniors is

7:54 on top of the standard deduction that everybody gets.

7:57 Number three is a little bit different because

7:59 this one's not directly from the Trump tax plan.

8:01 This is from a tax plan that was signed back

8:03 in 2022 and it went into effect on January 1, 2026.

8:08 And what this says is if you are over

8:10 the age of 50 and you are a high income earnner,

8:13 you can qualify for a higher contribution into your retirement accounts,

8:16 but there are some qualifications you have to understand and some changes.

8:20 In 2026, if you want to put money into your retirement account,

8:22 more specifically, your 401k, there are limits to that.

8:26 And in 2026 is $24,500 a year, which is the max you can contribute to your 401k.

8:32 Well, if you're over the age of 50, you can add a little bit more.

8:35 It has the ability to catch up as you get older.

8:38 That way, you can plan for your retirement.

8:39 So, if you're over the age of 50,

8:41 you can add an additional $8,000 a year into your 401k.

8:46 If you are between the ages of 60 and 63 and you're really trying to catch up,

8:50 well, now you can add an additional $11,250 a year into your 401k,

8:57 which means as you get older, if you're trying to play catch-up,

9:00 the government is going to allow you

9:01 to add more money into your retirement accounts.

9:04 But there are some new changes that you need to understand.

9:06 If in 2025 you made over $146,000 from your job,

9:10 well, that catchup contribution cannot go into a traditional 401k.

9:15 it must go into a Roth 401k.

9:18 The difference between a traditional and a Roth 401k is with a traditional 401k,

9:22 you do not pay taxes when you put the money in.

9:25 You pay taxes when the money gets pulled out when you retire.

9:28 With a Roth 401k, you pay taxes as soon as you

9:32 put the money in, but then when you pull the money out, you don't pay taxes.

9:36 So here, if you made over 146,000 from your job last year,

9:39 you must put it through a Roth 401k.

9:42 You cannot do a traditional 401k.

9:44 That's the first change.

9:45 The second thing you have to understand about that is

9:48 some companies will not offer a Roth 401k option,

9:52 which means if you're trying to do this catchup,

9:55 your company does not do a Roth option,

9:57 you might not be able to qualify for this catch-up bonus.

9:59 Tax rate number four is that you no longer have

10:01 to pay taxes on tips as long as you qualify.

10:04 Between the years 2025 and 2028,

10:07 you can qualify for a $25,000 write off from your tips.

10:11 So, if you're a waiter, waitress, you're a bartender,

10:13 and you're making tip money regularly, you can take a $25,000 write-off.

10:18 So, it means you can get up to $25,000 worth of tips and not

10:21 pay any money in taxes as long as you qualify on the income requirements,

10:24 which means you have to make under $150,000

10:28 a year as a single tax filer or $300,000

10:32 a year married filing jointly to be able

10:35 to qualify for this $25,000 write off from your tips,

10:38 which allows you to make up to 25 grand in tips and not pay any money in taxes.

10:43 And last but not least,

10:44 rule number five is no more taxes on overtime for hourly workers if you qualify.

10:49 What this rule says is that if you earn overtime income,

10:52 you don't have to pay any taxes on that overtime

10:54 income if you make under $12,500 in overtime

10:58 if you are a single tax filer and up

11:01 to $25,000 of overtime income if you're married filing jointly.

11:05 over this amount of income.

11:06 Now, you're going to have to pay taxes on the overtime income,

11:08 but you still have to meet the income requirements to qualify for this.

11:12 No taxes on overtime.

11:13 You have to make under $150,000 a year as a single

11:17 tax filer or $300,000 a year married filing jointly.

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11:56 So, what we talked about in this video is that in 2025,

11:59 President Trump signed the biggest tax cuts in the history

12:01 of America called the One Big Beautiful Bill Act.

12:05 And the first thing that that did is

12:06 it changed your income tax requirements and it

12:09 also changed the standard deduction requirements because

12:12 those were set to change come January 1, 2026.

12:15 But because this one big beautiful bill act was passed,

12:18 most people should be paying less money on their taxes because

12:22 of the changes on your marginal income

12:23 tax rates and the standard deduction rates.

12:25 We also talked about how our tax code

12:27 is designed to benefit investors more than employees,

12:30 which is why you should work to be an investor.

12:33 Again, I have my free investing master class

12:35 and market brief for you down in the description.

12:37 So, if you haven't signed up for that yet, again, I have the link for you there.

12:40 And then we talked about five other

12:41 provisions that you want to pay attention to.

12:43 The first one we talked about is the salt cap.

12:45 This is now your state and local taxes and your property taxes.

12:49 Before you can only write off up to $10,000 a year.

12:52 Now you can write off up to $40,000 a year, which gives more homeowners,

12:56 especially in high tax states like California, New York,

12:59 Massachusetts, and Connecticut, and New Jersey, and Illinois.

13:03 It gives you the ability to now qualify beyond just a standard deduction.

13:08 Number two, is a senior bonus.

13:09 If you're over the age of 65, you get to qualify for an additional $6,000

13:14 deduction just because you're over the age of 65.

13:17 And this is on top of the standard deduction.

13:19 Number three is the Roth ketchup change.

13:22 What it says is if you're over the age of 50,

13:24 you can contribute more money to your 401k.

13:27 If you're over the age of 60, you can contribute even more money to your 401k.

13:30 But now with this new rule which started in 2026,

13:34 if you were going to do this catchup into your 401k, it has to be a Roth 401k.

13:39 It can no longer be a traditional 401k.

13:42 So if your company doesn't offer a Roth, talk to your HR representative,

13:45 talk to your company to see if there any alternatives.

13:48 Number four are no taxes on tips.

13:51 What we learned is that through this new bill,

13:53 you have the ability to not pay any taxes on tips,

13:55 assuming that you meet the income requirements

13:57 and how much money you're getting from tips.

13:59 And then finally, number five is no taxes on overtime income,

14:03 which means yes, if you meet the income requirements,

14:06 you don't have to pay taxes on your overtime

14:08 income so long as you're below the threshold.

14:11 Now, if you got value out of this video, the best thank you is a referral.

14:14 So, if you could please share this video with a friend,

14:16 family member, colleague, or fellow investor.

14:18 That way, we can continue to spread this type of financial education.

14:21 Thank you.

14:21 President Trump just signed an executive order creating a new

14:25 way for Americans to retire in the United States.

14:28 It's not going to be with a 401k.

14:30 It's going to be with a Trump IRA.

14:32 Take a listen.

14:33 every American, you know,

14:34 most high-income people have an employer that gives them a 401k with a match,

14:38 but low-income people or Uber drivers or something, they don't have access to