HOW THE SECOND TRUMP TERM COULD AFFECT YOUR FINANCES

Income tax cuts are likely to be extended, but electric vehicle tax credits could disappear.

- SANDRA BLOCK

PRESIDENT Trump proposed a number of personal finance initiatives during the presidential campaign, many of which could have a direct effect on your savings and investments. Here's a look at what you can expect from the new administration.

Income taxes.

Trump has pledged to extend the individual income and estate tax provisions of the 2017 Tax Cuts and Jobs Act, and with the House of Representatives and Senate in Republican control, that effort is expected to succeed. Those provisions, which were set to expire at the end of 2025, doubled the standard deduction, lowered income tax rates and increased the estate tax exemption to a level that makes federal estate taxes a nonissue for the vast majority of taxpayers. In 2025, estates of up to $13.99 million will be excluded from federal estate taxes or up to $27.98 million for a married couple.

The Tax Cuts and Jobs Act also doubled the child tax credit from $1,000 to $2,000 per child, and Trump has said he wants to make the increase permanent. The credit phases out for single parents with $200,000 or more in income and married couples who file jointly and have $400,000 or more in income.

Vice President J.D. Vance has said he would like to increase the child tax credit to as much as $5,000 per child and extend it to all families regardless of income. However, such a tax break would be enormously expensive and face opposition from Republican lawmakers.