Andrea Coombes

6 days ago | bankrate.com | Kemberley Washington |Andrea Coombes

If you’re considering buying an electric vehicle, now may be the time to act. A sweeping Republican-led proposal, referred to as the “One Big Beautiful Bill,” is charging through Congress and threatens to wipe out the popular electric vehicle (EV) tax credit for most vehicles in 2025. The credit was originally launched in 2008, but received a major overhaul under former President Joe Biden’s Inflation Reduction Act of 2022.

1 week ago | bankrate.com | Andrea Coombes |Brian Beers

Taxpayers who donate to the causes that are close to their hearts may soon have a new reason to celebrate — and to give: The Senate’s version of the “big, beautiful” tax bill includes a valuable new tax deduction for qualified charitable contributions, worth up to $1,000 for single filers and $2,000 for married filing jointly taxpayers. The exciting part is this: This tax deduction would be available to taxpayers who claim the standard deduction — you wouldn’t have to itemize to benefit.

1 week ago | bankrate.com | Andrea Coombes |Brian Beers

If the massive tax package currently being debated in Congress becomes law, Americans who are 65 and older will enjoy a hefty new tax break: An additional $4,000 to $6,000 drop in taxable income, thanks to a new additional standard deduction. The House version of the tax bill calls for a $4,000 additional deduction, while the Senate version ramps that up to $6,000. The House approved its version in May, and the Senate is working now to bring its version to a vote.

1 week ago | bankrate.com | Kemberley Washington |Andrea Coombes

U.S. lawmakers appear primed for a tax-bill showdown, with the Senate’s proposed version of the “big, beautiful” act, released Monday, challenging the House version of the bill on several key tax measures, including a lower cap on the state and local taxes (SALT) deduction, a less generous boost to the child and tax credit and less hefty tax breaks for tips and overtime pay. The Senate version of the bill also adds much deeper cuts to Medicaid than the House version does.

3 weeks ago | bankrate.com | Anna-Louise Jackson |Andrea Coombes

FICA taxes, which are also called payroll taxes, are mandatory for most working Americans and cover both Social Security and Medicare taxes. Whether you’re an employee or self-employed, you’re generally required to pay FICA tax on your earnings. The FICA tax rate is 15.3 percent, though employees and employers split this cost, with each paying 7.65 percent of the employee’s income to the IRS.