Category Taxes & Tools

Starting September 30, 2025, the U.S. Treasury will stop sending federal payments like IRS tax refunds by paper check and switch to electronic transfers for most people. This change is meant to reduce mail fraud and delays, as paper checks have become easier to steal or fake. It’s also a way for the government to save money and make payments faster and more efficient, especially during tough economic times. But the move also raises new risks. Scammers may take advantage of the confusion—especially targeting older adults, veterans, and people without bank accounts. To stay safe, people should make sure their financial information is up to date with the IRS and watch for suspicious emails, phone calls, or messages.

On July 4, 2025, a major tax law called the "One Big Beautiful Bill Act" was passed, bringing big changes to how Americans plan their finances. The law keeps current tax rates in place, especially stopping the top income tax rate from increasing back to 39.6%. This gives people more confidence to plan for the future. It also introduces new investment tools, like the "Trump Accounts," which are designed to help people grow their wealth faster and save more for the long term. These changes come at a time when the economy is still facing inflation and budget concerns, making smart financial planning more important than ever.

Starting September 30, 2025, the U.S. Treasury will stop sending out paper checks for most federal payments, like Social Security benefits and tax refunds. Instead, people will receive their money through electronic methods, such as direct deposit. This change, part of Executive Order 14247 signed earlier in 2025, aims to make government payments faster, safer, and more cost-effective. Going digital is not only more efficient, but it also reduces the chances of checks getting lost or stolen. This move reflects the growing use of technology in handling money and government services.

In a major change to estate planning laws, the U.S. government has passed a new law called the “One Big Beautiful Bill” that keeps the federal estate tax exemption at a high level. Signed by President Trump on July 4, 2025, this law makes permanent the larger tax-free amount first introduced in the 2017 Tax Cuts and Jobs Act. Without this law, the exemption was set to drop by half starting in 2026, which could have meant higher taxes for families passing on wealth. Instead, individuals can now leave up to $15 million tax-free, and married couples up to $30 million, starting January 1, 2026. This brings more certainty for families and estate planners working to protect family wealth.

The new OBBB law is shaking up how retirees plan for their future. With rising inflation and uncertain tax rates, many people used to rely on Roth IRA conversions to save money on taxes later. But now, the law changes how adjusted gross income (AGI) is calculated, which can cause unexpected costs. For example, converting a large amount into a Roth IRA might push your AGI higher, making you pay more for Medicare or taxes on your Social Security benefits. Because of this, financial experts now recommend spreading out conversions over several years and creating detailed tax plans. This helps avoid surprises and protect your retirement savings.

President Trump’s 2025 tax plan, called the “One Big Beautiful Bill Act” (OBBBA), is a major move to change how Americans are taxed and how the government spends money. This plan extends key parts of the 2017 Tax Cuts and Jobs Act, which were set to expire at the end of 2025. One big change is that it raises the standard deduction—the amount of income not taxed—making it around $15,000 for single people and $30,000 for married couples, with a slight increase every year to keep up with inflation. The bill also temporarily removes the $10,000 limit on state and local tax (SALT) deductions, helping people in high-tax states like New York and California. This plan could affect everything from how much money people take home to how federal programs are funded in the future.