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Daily Mirror
a day ago
- General
- Daily Mirror
'I don't know how I'm going to put food on table let alone days out in summer holidays'
Almost half of parents (48%) are more worried about being able to afford things for their children this summer holiday compared to last year, grim research shows Almost half of parents (48%) are more worried about being able to afford things for their children this summer holiday compared to last year, grim research shows. This rises to 69% for lone parents, a survey by the Child Poverty Action Group (CPAG) found. Some 45% of parents say the cost of childcare is a challenge over the summer and 29% say they have to borrow money or go into debt to cover these costs, the study found. Parents said they will struggle to pay for food and snacks and other basics for their children, such as sun cream, as well as fun activities like sports clubs, a trip to the beach or small treats like an ice cream. Some 44% of parents said they will likely use a foodbank this summer holiday and two in five families (39%) said they would likely use a clothing bank. And more than half of parents (52%) said they were worried about the continued pressure on living standards taking a toll on their children's mental health this summer, while 48% said they were worried about their child's physical health. One parent told the survey: 'I don't know how I'm going to put food on table let alone days out.' One mum, speaking about their son, said: 'The money is just enough to pay the bills and buy essentials. I do feel for him because as a family we can't enjoy outings or short breaks during the summer holidays (which were fun at one time).' Another parent added: 'It [the summer holiday] should be a happy time, but for many people, it's just another mountain to climb. I wish there was more low-cost or free help for families during the holidays. We do our best, but it doesn't always feel like it's enough.' Head of education policy at CPAG Kate Anstey called for the two-child benefit limit to be scrapped. CPAG research estimates that ditching the Tory-era policy, which restricts claims for Child Tax Credit and Universal Credit to the first two children, would lift 350,000 children out of poverty and mean 700,000 children are in less deep poverty. Ms Anstey said: 'This research shows there will be more worry than wonder this summer for millions of desperate families who can't make ends meet. Ministers have promised better living standards and opportunity for all but with children facing another summer cut off from fun and friends - much more action is clearly needed. 'Government's autumn child poverty strategy must restore investment in support for families – including abolition of the two-child limit – otherwise a generation of children will be left behind.' A government spokesman said: 'We recognise the school holidays can be a pressurised time for parents, which is why this government is putting pounds back in parents' pockets both during the holidays and in term time. 'We are also continuing to fund free holiday clubs through the Holiday Activities and Food programme which provides six weeks of activities and meals for any child from a low-income family who needs it.' ::: Survation surveyed 1,580 UK parents on income-related benefits with at least one child aged 4-18 years for CPAG between July 10-17.
Yahoo
2 days ago
- Business
- Yahoo
What Trump's New Tax Law Means for Upper-Middle-Class Families in 2025
President Trump signed his 'One Big Beautiful Act' (OBBA) into law and Americans will see sweeping changes to their finances as a result. The final bill includes a senior bonus to help offset Social Security taxes, tax breaks for service industry employees, a bigger Child Tax Credit, but will also make Trump's Tax Cuts and Jobs Act of 2017 (TCJA) permanent and cut funding for Medicaid and Medicare, per the Center for American Progress. Read Next: For You: While the bill has been touted as a way to offer financial relief to Americans, it doesn't exactly give much help. 'This thing is mostly smoke and mirrors for upper middle class families (that $117,000 to $150,000 range),' said finance expert Andrew Lokenauth with Be Fluent in Finance. 'You're not getting hammered, but you're not winning either.' Here's what Trump's new tax law really means for the upper-middle class, according to tax and finance experts. Increased Standard Deduction The standard deduction is rising to $15,000 for single filers, an increase of $400 and $30,000 for married couples, which is an increase of $800 per the IRS.'This is a big win for families in this income bracket who don't itemize deductions,' said Peter Diamond, a federally licensed tax, accounting, real estate and structure and certified bankability expert.'Most upper middle class taxpayers don't exceed the itemization threshold, especially with the SALT (state and local taxes) cap still in place. The increased standard deduction gives them a bigger automatic write-off, reducing taxable income and simplifying filing,' he according to Lokenauth, that change could cost some taxpayers more. 'If you're in that $120,000 to $150,000 income zone, especially with a mortgage, the loss of personal exemptions and caps on SALT means you're probably paying more now than you did before 2018,' he added. Check Out: Expanded Child Tax Credit The Child Tax Credit was a big talking point for Trump and Vice President Vance. The credit boosted from $2,000 per qualifying child to $2,220 beginning in 2026, per CNBC. Parents must earn $200,000 a year or less or joint filers up to $400,000. 'That means many families in the $117,000 to $150,000 range, who were previously phased out of this credit, now qualify again,' Diamond said. 'For a family with two children, that's up to $4,000 in tax credits, which directly reduces the tax bill dollar-for-dollar.'However, the new revisions are not as good as they seem, Lokenauth said. 'We got the credit — but the alternative minimum tax (AMT) and phaseouts on other things like education credits basically neutralized any real benefit,' he explained. 'The math got messier, not cleaner.' SALT Deduction Cap Remains While there are ways the upper middle class can get a small break, the State and Local Tax deduction cap will not offer relief, according to Diamond. 'The $10,000 cap remains, which hits high-tax states hard,' he said. 'Families in this income range often pay well over $10,000 in combined property and state income taxes, but they can only deduct up to that cap. While some benefits elsewhere may offset this, it's still a frustrating limitation for many.' Mortgage Interest Deduction Previously under the TCJA you could deduct mortgage interest up to $1 million in debt, but it's now been reduced to $750,000. 'For a lot of upper middle class buyers in expensive housing markets (California, D.C. suburbs, New York burbs), this wipes out a big deduction you probably relied on,' Lokenauth explained.'A friend who bought in Westchester with a $900K mortgage was shocked to learn that only a portion of his interest was deductible. He said it cost him over $3,000 in missed tax savings in his first year alone,' he added. 20% QBI Deduction Extended The Qualified Business Income (QBI) deduction — allowing up to a 20% deduction on pass-through business income — has been extended.'This doesn't help W-2 earners, but for anyone in this income range with a side business, real estate rentals or 1099 income, it's a powerful tool. Structuring income the right way could significantly lower their taxable income,' Diamond an upper middle class income sounds great on paper, but it's not the comfortable salary needed to live after taxes and cost of living.'If you're making around $125,000, you're probably seeing some benefit from the current system — lower marginal rates, bigger standard deduction — but you're also losing more in deductions. Especially if you own a home or pay a lot in local taxes,' Lokenauth knowing the tax codes is beneficial and can work to your advantage, Diamond explained. 'The truth is, wage earners will always pay the most in taxes, while asset owners often pay the least. That's how the system is designed — but when you understand the code, you can use it to your advantage instead of being crushed by it,' he added. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on This article originally appeared on What Trump's New Tax Law Means for Upper-Middle-Class Families in 2025
Yahoo
2 days ago
- Business
- Yahoo
What Trump's New Tax Law Means for Upper-Middle-Class Families in 2025
President Trump signed his 'One Big Beautiful Act' (OBBA) into law and Americans will see sweeping changes to their finances as a result. The final bill includes a senior bonus to help offset Social Security taxes, tax breaks for service industry employees, a bigger Child Tax Credit, but will also make Trump's Tax Cuts and Jobs Act of 2017 (TCJA) permanent and cut funding for Medicaid and Medicare, per the Center for American Progress. Read Next: For You: While the bill has been touted as a way to offer financial relief to Americans, it doesn't exactly give much help. 'This thing is mostly smoke and mirrors for upper middle class families (that $117,000 to $150,000 range),' said finance expert Andrew Lokenauth with Be Fluent in Finance. 'You're not getting hammered, but you're not winning either.' Here's what Trump's new tax law really means for the upper-middle class, according to tax and finance experts. Increased Standard Deduction The standard deduction is rising to $15,000 for single filers, an increase of $400 and $30,000 for married couples, which is an increase of $800 per the IRS.'This is a big win for families in this income bracket who don't itemize deductions,' said Peter Diamond, a federally licensed tax, accounting, real estate and structure and certified bankability expert.'Most upper middle class taxpayers don't exceed the itemization threshold, especially with the SALT (state and local taxes) cap still in place. The increased standard deduction gives them a bigger automatic write-off, reducing taxable income and simplifying filing,' he according to Lokenauth, that change could cost some taxpayers more. 'If you're in that $120,000 to $150,000 income zone, especially with a mortgage, the loss of personal exemptions and caps on SALT means you're probably paying more now than you did before 2018,' he added. Check Out: Expanded Child Tax Credit The Child Tax Credit was a big talking point for Trump and Vice President Vance. The credit boosted from $2,000 per qualifying child to $2,220 beginning in 2026, per CNBC. Parents must earn $200,000 a year or less or joint filers up to $400,000. 'That means many families in the $117,000 to $150,000 range, who were previously phased out of this credit, now qualify again,' Diamond said. 'For a family with two children, that's up to $4,000 in tax credits, which directly reduces the tax bill dollar-for-dollar.'However, the new revisions are not as good as they seem, Lokenauth said. 'We got the credit — but the alternative minimum tax (AMT) and phaseouts on other things like education credits basically neutralized any real benefit,' he explained. 'The math got messier, not cleaner.' SALT Deduction Cap Remains While there are ways the upper middle class can get a small break, the State and Local Tax deduction cap will not offer relief, according to Diamond. 'The $10,000 cap remains, which hits high-tax states hard,' he said. 'Families in this income range often pay well over $10,000 in combined property and state income taxes, but they can only deduct up to that cap. While some benefits elsewhere may offset this, it's still a frustrating limitation for many.' Mortgage Interest Deduction Previously under the TCJA you could deduct mortgage interest up to $1 million in debt, but it's now been reduced to $750,000. 'For a lot of upper middle class buyers in expensive housing markets (California, D.C. suburbs, New York burbs), this wipes out a big deduction you probably relied on,' Lokenauth explained.'A friend who bought in Westchester with a $900K mortgage was shocked to learn that only a portion of his interest was deductible. He said it cost him over $3,000 in missed tax savings in his first year alone,' he added. 20% QBI Deduction Extended The Qualified Business Income (QBI) deduction — allowing up to a 20% deduction on pass-through business income — has been extended.'This doesn't help W-2 earners, but for anyone in this income range with a side business, real estate rentals or 1099 income, it's a powerful tool. Structuring income the right way could significantly lower their taxable income,' Diamond an upper middle class income sounds great on paper, but it's not the comfortable salary needed to live after taxes and cost of living.'If you're making around $125,000, you're probably seeing some benefit from the current system — lower marginal rates, bigger standard deduction — but you're also losing more in deductions. Especially if you own a home or pay a lot in local taxes,' Lokenauth knowing the tax codes is beneficial and can work to your advantage, Diamond explained. 'The truth is, wage earners will always pay the most in taxes, while asset owners often pay the least. That's how the system is designed — but when you understand the code, you can use it to your advantage instead of being crushed by it,' he added. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on This article originally appeared on What Trump's New Tax Law Means for Upper-Middle-Class Families in 2025
North Wales Live
3 days ago
- Business
- North Wales Live
People who get four different DWP benefits urged not to ignore letter
While the Universal Credit and Personal Independence Bill is grabbing attention in Parliament, the transition to Universal Credit is quietly taking place. This managed migration began in May 2022 with the aim of moving all recipients of six legacy benefits onto the Universal Credit system. The DWP intends to send out migration notices to all remaining claimants by the end of this year, with a plan to close all legacy benefits by March 2026. Working Tax Credit and Child Tax Credit have already been phased out due to the migration. However, claimants of four other benefits are still being transferred and should anticipate a letter from the DWP if they haven't received one yet. The following benefits are set to cease soon as part of the Universal Credit migration: Income-related Employment and Support Allowance (ESA) Income Support Income-based Jobseeker's Allowance (JSA) Housing Benefit People claiming these benefits who are affected by the migration will be sent a migration notice letter from the DWP. It's vital that people don't disregard this letter, as the migration won't be automatic and your benefits will terminate even if you decide not to claim Universal Credit, reports the Mirror. The letter you'll receive will include a personal deadline date, which is the final day you can apply for Universal Credit and still be eligible for transitional protection. You're free to apply for the benefit after this date or even before receiving a migration notice, but you'll miss out on this safeguard. The DWP clarifies: "As you've received a Migration Notice letter some of the normal eligibility rules for claiming are different. This is part of 'transitional protection'." This transitional protection is designed to make sure that individuals receive the same amount on Universal Credit as they did from their previous benefits, regardless of whether they fit the new criteria, to prevent anyone from being worse off due to the change. Take, for instance, if you were getting £140.55 weekly on ESA but under Universal Credit's standard rules, you're only entitled to £100, you'd receive an extra £40.55 per week as transitional protection. Sign up for the North Wales Live newsletter sent twice daily to your inbox Should you find yourself unable to apply before your transitional protection deadline, it's crucial to ring the Universal Credit Migration Notice Helpline at 0800 169 0328. If you have a valid reason and contact them before your deadline, you might be granted an extension. To claim Universal Credit, you can go online and set up a Universal Credit account. Remember, you must finish your application within 28 days of creating the account. Alternatively, you can apply over the phone using the Universal Credit Migration Notice Helpline. The shift to Universal Credit is still ongoing, with a significant overhaul planned for next year. The proposed alterations in the forthcoming Bill will slash and freeze the health component rate for new claimants from April 2026. Those already receiving the benefit before the change comes into effect will be shielded from the reduction. Considering the government's plan to send out all migration notices by December 2025 and wrap up all legacy benefits by March 2026, those transitioning to Universal Credit should also be safeguarded by this concession.
Forbes
3 days ago
- Business
- Forbes
Everything Parents Need To Know About The 2025 Child Tax Credit Changes
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. The Child Tax Credit is getting another update in 2025 under the new One Big Beautiful Bill . While it doesn't match the expanded benefits from the 2021 pandemic relief, the credit continues to provide significant support, particularly for middle-income families facing rising costs. The 2021 American Rescue Plan temporarily increased the Child Tax Credit to $3,600 per child under age 6 and $3,000 per child aged 6 to 17. It also made the credit fully refundable, allowing families who didn't owe any federal income tax to receive the full amount. Under the new policy, the credit reduces to $2,200 per child under 17—close to what it was prepandemic. While there's no extra boost like before, it's still a nice tax break. The good news? More families can now qualify for the tax credit thanks to higher income phaseout thresholds. The credit now begins to phase out at: $200,000 for single filers $400,000 for married couples filing jointly Before 2021, phaseouts kicked in at much lower levels—$75,000 and $150,000, respectively. This is a welcome change for middle-income families, especially those in high-cost areas, who may have previously phased out under the old limits. Claiming the Child Tax Credit is pretty straightforward; however, you want to make sure you include the correct forms so you don't miss out. Use IRS Form 1040 to file your federal taxes to file your federal taxes Attach Schedule 8812 , the form for the Child Tax Credit, to claim the credit , the form for the Child Tax Credit, to claim the credit File by the tax deadline, which is April 15, 2026 Before filing, make sure you meet the new requirements from the IRS, as missing or inconsistent information could hold up your credit. Here's what the IRS now looks for from the qualifying child: Age. The child must be under 17 at the end of the tax year. The child must be under 17 at the end of the tax year. Relationship. The child must be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister or even a grandchild, niece or nephew. The child must be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister or even a grandchild, niece or nephew. Support. You need to be primarily supporting them; the child can't provide more than half of their support during the year. You need to be primarily supporting them; the child can't provide more than half of their support during the year. Residency. To qualify, the child must have lived with you for more than half the year. To qualify, the child must have lived with you for more than half the year. Dependency. You need to claim them as a dependent on your tax return. You need to claim them as a dependent on your tax return. Filing status. The child cannot file a joint tax return with someone else unless they are seeking a refund of withheld or estimated taxes. The child cannot file a joint tax return with someone else unless they are seeking a refund of withheld or estimated taxes. Citizenship. The child must be a U.S. citizen, U.S. national, or U.S. resident alien. The child must be a U.S. citizen, U.S. national, or U.S. resident alien. Social Security number. The child needs a valid Social Security number to work, and it must be issued before your tax return is due (including any extensions). If you have unpaid federal taxes, the IRS can reduce your Child Tax Credit to cover what you owe. So, if you're behind on payments, you'll want to clear those debts before filing to avoid losing part of your credit. Even if your tax bill is low or zero, you could still receive the Child Tax Credit. Because part of the credit is refundable, families may receive up to $1,700 per child, providing crucial support regardless of tax liability. Start by gathering your paperwork. Make sure you have your child's Social Security number and any custody or relationship documents. In addition, check whether your annual income falls under the phaseout limits, so you have a better idea of what to expect. If you owe back taxes, it's best to deal with it now than put it off. If you don't owe anything, you can begin organizing your documents and preparing for tax season. And if all this feels overwhelming, getting help from a tax professional or using reliable tax software can make the process easier. Here are some of the best tax software options available. The 2025 Child Tax Credit isn't as big as the pandemic-era boost families got in 2021, but it is still a relief for many, especially middle-income households. With higher income limits, more families can get the full credit this year. That said, the IRS is enforcing stricter eligibility rules. Make sure your paperwork is in order and address any unpaid taxes that could hold up your claim.
