Read Time:2 minutes. Jurisdiction: United States

Hey Reader!

As of July 4th, a massive 900-page tax bill just became law in the United States. Nicknamed the "one big beautiful bill," this changes the game for our community of content creators and small business owners.

The tax benefits from the 2017 Tax Cuts and Jobs Act are now permanent. That includes a higher standard deduction, lower top tax brackets, and an increased child tax credit. In fact, the child tax credit is going up to 2,200 dollars, and the new standard deduction for single filers is set at 15,750 dollars.

Tips just got a major win too. Up to 25,000 dollars of tip income will be deductible. For example, if you made 100K and 25K came from tips, you will only be taxed on 75K. Just keep in mind that this benefit phases out once your income goes past 150K.

Trump also added an auto loan interest deduction. You can now deduct up to 10,000 dollars of car loan interest, but only if the car is made by a US manufacturer. This is clearly a move to push buying American; think Ford, Jeep, Dodge.

Now for the trade-offs. Over 12 million Americans are expected to lose access to Medicaid, and food stamps are getting trimmed down too. That's insane. EV tax credits and solar panel incentives are being phased out at the end of this year. You may be taxed on funds you send overseas to your parents. And with the debt ceiling being raised by 5 trillion dollars, we can expect the Feds to raise interest rates in the future to balance out the borrowing trend and encourage saving.

The real message here? The government wants less from taxpayers and more from tariffs and foreign trade. This is macroeconomics at work, where tax codes have always been used to sway behavior.

As always, remember my mantra - 1) Leverage the tax code to activate tax write-offs and income-generating assets. 2) Don't spend a dollar to save a quarter.

Resources for Creators

Free Initial Consultation: It's time to be proactive with your creator business taxes! Book a session today.

Creator's Corner: The Canadian edition is available now on my website and is the best handbook for creators navigating their ventures.

Creator's Corner (US): Coming REAL soon!

Creator's Corner Tax Community: A community of creators centered around helping each other navigate the tax world in the creator industry. DIY tax planning software, DIY QBO integrations and DIY financial dashboards included, all with access to a CPA and other creator businesses. Reply "TEAM" if you'd like to join!

Love y'all!

Rony Fogain, CPA Fogain & Associates Professional Corporation The Content Creator's Firm Austin, TX/Toronto, ON Email: admin@rfogain.com​ Tel: 647-510-7103 Tel (US): 512-460-8836

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