Trump Megabill's Impact on Your Benefits and Wallet: What to Know?

President Donald Trump on July 4th signed his massive budget bill into law, which includes tax cuts, Medicaid cuts, along with many other priorities of his agenda. How will the law affect your benefits and wallet? Currently, annual income certification is required for Medicaid recipients. Under the new law, that would be done every six months and includes providing proof of citizenship. In order to maintain eligibility, some Medicaid enrollees would be required to spend 20 hours per week in employment, educational activities, training, or community service. This provision applies to adults who are not disabled and are not responsible for caring for children or other dependents. To receive or keep their Supplemental Nutrition Assistance Program, SNAP, parents of children aged 14 or older would have to meet work requirements. The law also requires able-bodied adults aged 18 to 64 without dependents to meet work requirements to receive SNAP benefits, an expansion from the previous 18 to 54 age span. The new law extends the tax cuts from Trump's first term. The standard tax deduction will increase to $15,750 for single filers and $31,500 for married couples filing jointly. The estate and gift tax exemption rises to $15 million for individuals and $30 million for couples. The law also allows individuals to deduct up to $25,000 of tip income annually from federal taxes between 2025 and 2028. The deduction phases out for individuals earning more than $150,000 or $300,000 for joint filers. Taxpayers will be able to deduct up to $10,000 in interest on new auto loans taken out between 2025 and 2028. The deduction phases out for individuals earning over $100,000 or $200,000 for married couples filing jointly. Instead of fully eliminating taxes on Social Security benefits as Trump once floated, the bill provides a $6,000 annual deduction for Social Security income. The deduction phases out for individuals earning over $75,000 and couples earning over $150,000 and is unavailable to single filers earning $175,000 or more or joint filers above $250,000. The child tax credit grows to $2,200 per child starting in 2025 with up to $1,700 refundable and future increases indexed to inflation. Under the provision, the federal government will make a one-time $1,000 deposit for every eligible child who is a U.S. citizen, also known as Trump Accounts for Children. Parents can contribute up to $5,000 annually. Employers can also chip in up to $2,500, which won't count as taxable income for the employee.