Tax Experts: 6 Ways Trump’s Tax Plan Impacts Middle-Class Families

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While some attention has focused on corporate tax cuts and benefits for high earners, the plan also includes several provisions that directly affect the middle class.“While most middle-class families will benefit from immediate relief, the picture is more complex for those in high-tax states and municipalities,” explained Lisa A. Cummings, attorney and executive vice president at Cummings & Cummings Law. “Families should evaluate how the new rules affect their specific situation, compare standard deduction benefits against prior itemized deductions and consider working with a tax professional to integrate these changes into long-term financial planning.”Learn More: 8 Ways Trump’s ‘One Big Beautiful Bill’ Could Offer Tax ReliefRead Next: 10 Used Cars That Will Last Longer Than the Average New VehicleHere are six ways Trump’s tax plan affects middle-class families, according to tax experts.“The standard deduction for non-itemizers is slightly higher for 2025 than expected. For example, $15,750 for single person rather than $15,000,” Annette Nellen, CPA, attorney and tax professor at San José State University, wrote in an email. “For itemizers, the state and local tax deduction is up to $40,000 starting for 2025.”According to Cummings, while the higher standard deduction is something that the middle class will notice right away, it may not be enough to fully offset costs, particularly for families in high-tax states and municipalities, thanks to caps on state and local tax deductions.Find Out: What Trump’s New Tax Law Means for Upper-Middle-Class Families in 2025“Families can now get up to $2,200 per child adjusted for inflation, slightly more than before, helping with child-related expenses,” explained Elina Linderman, tax professional and owner of accounting firm La Rusa Financial.However, there are some new restrictions. Linderman noted that families with children who don’t have Social Security numbers or with mixed immigration status may not qualify for the full credit.“These new provisions also reduce the tax burden on overtime pay and tips, a meaningful benefit for hourly and service workers who depend on extra shifts to make ends meet,” Cummings explained.According to the IRS, the maximum annual deduction is up to $25,000 in qualified tip income and up to $12,500 in qualified overtime compensation, or $25,000 for joint filers.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,460.26 -41.60 (-0.64%)Dow 3045,544.88 -92.02 (-0.20%)Nasdaq21,455.55 -249.61 (-1.15%)Russell 20002,366.42 -11.99 (-0.50%)VIX15.36 +0.93 (+6.44%)Gold3,516.10 +41.80 (+1.20%)PortfolioSign in to access your portfolioSign inTop gainersAMBA Ambarella, Inc. 82.48 +11.85 (+16.78%)IREN IREN Limited 26.48 +3.44 (+14.93%)BABA Alibaba Group Holding Limited 135.00 +15.43 (+12.90%)AFRM Affirm Holdings, Inc. 88.46 +8.47 (+10.59%)DOOO BRP Inc. 62.98 +5.49 (+9.55%)Top losersMRVL Marvell Technology, Inc. 62.87 -14.37 (-18.60%)CHA Chagee Holdings Limited 19.11 -2.89 (-13.14%)RMBS Rambus Inc. 73.77 -7.32 (-9.03%)DELL Dell Technologies Inc. 122.15 -11.90 (-8.88%)BLSH Bullish 59.03 -5.40 (-8.38%)Most activeWBA Walgreens Boots Alliance, Inc. 11.98 0.00 (0.00%)OPEN Opendoor Technologies Inc. 4.4500 +0.1800 (+4.22%)NVDA NVIDIA Corporation 174.18 -5.94 (-3.30%)LCID Lucid Group, Inc. 1.9800 -0.0900 (-4.35%)MRVL Marvell Technology, Inc. 62.87 -14.37 (-18.60%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBABA Alibaba Group Holding Limited 135.00 +15.43 (+12.90%)ORCL Oracle Corporation 226.13 -14.19 (-5.90%)BTC-USD Bitcoin USD 108,377.40 -3,812.25 (-3.40%)GOOG Alphabet Inc. 213.53 +1.16 (+0.55%)FLYY Spirit Aviation Holdings, Inc. 1.2200 -0.0300 (-2.40%)Top economic events