(Bloomberg) -- A new presidential administration. A slower forecast pace of interest-rate cuts. Potentially seismic changes to everything from student loan payments to federal tax rates.
As 2025 is here, time to get your financial life organized.
While every American’s personal finances are unique, many macroeconomic forces are poised to take center stage in the new year. Donald Trump will take office in January, likely ushering in a wave of changes for trade and taxes. Those, in turn, could determine whether the Federal Reserve continues to cut interest rates, or whether policymakers will need to slow or reverse 2024’s rate reductions.
The central bank’s moves will be closely watched by investors to determine whether this year’s massive stock market rally can power on, minting another record amount of 401(k) millionaires. If the Fed keeps policy tight, it could hamstring high-flying companies like Nvidia Corp. and Apple Inc. that have driven gains in broad market indexes.
To make sense of it all, we put together the following calendar of key dates for your personal finances.
January: Missed Student Loan Payments Hurt Credit Scores
Payments for federal student loans officially restarted in 2023, but a leniency period from the Biden administration protected borrowers from the worst repercussions of missed bills until the end of September 2024. Those who still don’t make payments will be considered delinquent starting in January, and their credit scores will take a hit. Borrowers with the best credit scores will see a 129-point drop on average, according to TransUnion.
Jan. 20: Presidential Inauguration
Donald Trump’s second presidential term is slated to feature more tariffs and tax cuts, as well as a crackdown on undocumented migrants. Signs are beginning to emerge on what this means for the economy and markets. During the campaign, Trump said he would impose a 60% tariff on imports from China and a 10% to 20% fee on goods from anywhere else. He’s also pledged to extend the 2017 tax cuts for households, small businesses and estates of the wealthy, and has also mentioned lowering the corporate tax rate to 15% from 21%.
Jan. 29: First Fed Decision
After three interest-rate cuts in 2024, the Fed will weigh further policy changes in the new year. In their December meeting, policymakers signaled two quarter-point cuts in 2025 — fewer than estimated just a few months ago.
The next decisions will be March 19, May 7, June 18, July 30, Sept. 17, Oct. 29 and Dec. 10.
Feb. 27: GDP Data Released
Market watchers will receive estimates for US gross domestic product in both the fourth quarter and the full year of 2024. These figures are a crucial window into the health of the economy and will help investors gauge future Fed rate cuts. For 2025, Bloomberg Economics forecasts US growth at 2% and global growth at 3.1%
April 15: Tax Day
The deadline for Americans to file their 2024 tax return is April 15, which is also the last day to file for an extension to push the due date back to Oct. 15. The Internal Revenue Service recommends creating an online account where you can find all your tax-related information.
April 15: Last Day to Make a 2024 Retirement Contribution
You can contribute to your IRA or Roth IRA for the 2024 tax year up until April 15. For those under 50, you can add a maximum of $7,000 to your IRA or Roth IRA, and those over 50 can contribute $8,000.
June 30: FAFSA Deadline
Prospective college students need to file their Free Application for Federal Student Aid (FAFSA) by June 30 this year. The form is used by students and their parents to apply for federal grants, loans and work-study arrangements, and received a revamp last year to make it shorter and easier to complete. However, a botched rollout in 2024 led to delays, website glitches and frustration for students.
The FAFSA form for this year is available, and experts recommend filling it out early, so colleges can calculate financial aid offerings in time to send out with acceptance decisions in March or April.
Dec. 31: Provisions of the Tax Cuts and Jobs Act of 2017 Expire
During Trump’s first term, Congress passed the Tax Cuts and Jobs Act, which made significant changes to the rates of individual and corporate income taxes. It cut the corporate tax rate to 21% and capped deductions for state and local taxes (SALT) at $10,000, in addition to doubling standard deductions and expanding the child tax credit.
However, several provisions are set to expire by the end of 2025 unless lawmakers take action. Deductions for pass-through income and certain business expenses will be phased out, and marginal tax rates for individuals will rise, including an increase to 39.6% from 37% for the highest earners.
To contact the author of this story:
Claire Ballentine in New York at [email protected]
