The federal income tax definition has evolved significantly with recent legislative developments that reshape how Americans approach their tax obligations. The federal income tax has seven tax rates in 2025: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. Understanding what constitutes federal income tax becomes crucial as taxpayers … Read more
The much-anticipated “No Tax on Overtime” provision officially starts retroactively on January 1, 2025, following the July 4, 2025 signing of the One Big Beautiful Bill (OBBB) by President Trump. This landmark legislation introduces a federal income tax deduction on qualified overtime pay for eligible workers, marking a significant shift in how overtime earnings are … Read more
The recent Social Security tax break legislation has brought significant relief to millions of Americans aged 65 and older through the One Big Beautiful Bill Act. This landmark legislation, signed into law on July 4, 2025, introduces a new $6,000 annual deduction specifically for seniors, marking a historic shift in how the government approaches tax … Read more