Will the Trump team pare back its universal tariff plan? The Washington Post reports President-elect Donald Trump’s incoming administration is exploring tariffs on “critical” imports, perhaps scaling back from the universal tariffs proposed during the campaign. The revised approach would focus on key sectors such as defense materials, medical supplies, and renewable energy components. This strategy could still trigger international trade retaliation and price hikes for American consumers.
Higher Social Security payments could mean higher taxes for some. The Social Security Fairness Act increases benefits for approximately 3 million Americans. Those with higher Social Security income may now fall into brackets requiring that up to 85 percent of their benefits be taxed, depending on their total income. While the changes provide financial relief for public sector retirees, they also raise concerns about Social Security’s long-term funding.
New Yorkers can file taxes online for free. Beginning this tax season, New Yorkers can use Direct File, a free online tax filing service the IRS offers for state and federal returns. Initially piloted in 2024, Direct File has been expanded to cover more taxpayers and income types. Democratic Governor Kathy Hochul said that Direct File could save taxpayers an average of $260 in preparation fees, making tax compliance more accessible and affordable. The program will be available throughout the upcoming filing season, which ends April 15.
Also in New York: A proposal for a major child tax credit expansion. The New York Times reports that Governor Hochul plans to double the state’s child tax credit for low- and middle-income families, offering up to $1,000 per child under 4 and $500 per child aged 4 to 16. Hochul also aims to provide inflation-driven tax rebates to millions of residents, using surplus sales tax revenues.
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