Investing

The IRS has unveiled higher federal tax brackets for 2025 to adjust for inflation.
The standard deduction will increase to $30,000 for married couples filing together and $15,000 for single taxpayers.
There are also changes to the long-term capital gains brackets, estate tax exemption, child tax credit eligibility and more. 

Rockaa | E+ | Getty Images

Federal tax brackets for 2025

Federal income tax brackets show how much you owe on each part of your “taxable income,” which you calculate by subtracting the greater of the standard or itemized deductions from your adjusted gross income.

Higher standard deduction

The standard deduction will also increase in 2025, rising to $30,000 for married couples filing jointly, up from $29,200 in 2024. Starting in 2025, single filers can claim $15,000, a bump from $14,600.
Trump’s tax cuts also included higher standard deductions, which will sunset after 2025 if Congress doesn’t extend that tax break.  More

The IRS on Tuesday unveiled 2025 inflation adjustments for the long-term capital gains tax brackets, which apply to investments owned for more than one year. 
For 2025, single filers can earn up to $48,350 in taxable income — $96,700 for married couples filing jointly — and still pay 0% for long-term capital gains.
You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income.

Xavier Lorenzo | Moment | Getty Images

The IRS has unveiled higher capital gains tax brackets for 2025.
In its announcement Tuesday, the agency boosted the taxable income limits for the long-term capital gains brackets, which apply to assets owned for more than one year.  The IRS also increased figures for dozens of other provisions, including federal income tax brackets, the estate and gift tax exemption and eligibility for the earned income tax credit, among others.More from Personal Finance:Tax brackets may increase after 2025. It could affect your brokerage accountBuying a home? Here are key steps to consider from top-ranked advisorsTrump’s tax cuts could expire after 2025. How advisors are preparing

The capital gains rate you pay is based on which bracket you fall into based on taxable income. 
You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income. For 2025, the standard deduction will rise to $15,000 for single filers and $30,000 for married couples filing jointly.Starting in 2025, single filers will qualify for the 0% long-term capital gains rate with taxable income of $48,350 or less and married couples filing jointly are eligible with $96,700 or less.  More

The trust fund Social Security relies on to pay retirement benefits faces a looming 2033 projected depletion date.
If no changes are made by that date, the general expectation is that an across-the-board benefit cut would be inevitable.
Yet new research suggests the president would have room to adjust those cuts to protect those who most need benefit income.

Thinair28 | Getty Images

Social Security may not be able to pay full retirement benefits as soon as 2033, based on current projections from the program’s trustees.
If Congress doesn’t move to fix the situation by that date, the general expectation is that millions of retirees could see a 21% across-the-board benefit cut.

The effects of that lost income could be enough to prompt a retirement crisis, since it would double the elderly poverty rate and reduce median senior household income by nearly 14%, according to new research from the American Enterprise Institute.
Yet those broad benefit cuts would not necessarily have to happen, as the worst effects of insolvency could be prevented by executive action, according to the report.
More from Personal Finance:Social Security Administration announces 2.5% COLA for 2025House may force vote on bill affecting pensioners’ Social Security benefits72% of Americans worry Social Security will run out in their lifetime
Instead of across-the-board benefit cuts, benefits could be reallocated to avoid increases in poverty for low earners while having just a small effect on the middle class, according to Andrew Biggs, a senior fellow at the AEI, who co-wrote the report with Kristin Shapiro, counsel at BakerHostetler.
“It means big cuts on very rich people, but it avoids what you might think of as a retirement crisis, where everything is thrown into upheaval,” Biggs said.

Why Social Security’s trust funds face depletion dates

Social Security draws from multiple sources to pay benefits — ongoing revenue from payroll taxes and income taxes, as well as trust funds that are used to supplement the monthly checks beneficiaries receive.
Yet as more people collect Social Security retirement benefits, the trust fund used to pay those benefits is running low. The depletion date — currently 2033 — represents the point at which the fund will be exhausted.
At that point, it is expected that 79% of those benefits will be payable.

Social Security has more than one trust fund, including one that pays retired workers, their families and survivors, and a second that pays disability benefits.
Together, those trust funds have a projected depletion date of 2035, when 83% of benefits would be payable. While merging the funds could provide additional financial runway, doing so is not allowed under current law, according to the AEI report.

How broad benefit cuts could be avoided

As the November election approaches, experts generally hope a new president and new Congress will address Social Security’s solvency.
“We far prefer for Congress to enact comprehensive Social Security reforms before 2033,” the AEI report says.
The sooner Congress acts, the better it will be for all beneficiaries involved, to give them more certainty, said Shai Akabas, executive director of the Bipartisan Policy Center’s Economic Policy Program. A recent survey from Nationwide Retirement Institute found 72% of adults worry Social Security will run out of funding in their lifetime.
The roughly 21% across-the-board benefit cut is “untenable and unsustainable, both politically and financially from a household perspective,” Akabas said.
However, if lawmakers fail to come to an agreement by the depletion date, the president could move to protect beneficiaries from the worst effects of the ensuing cuts, according to Biggs and Shapiro.

Once the depletion date arrives — whether it remains 2033 or shifts to another year — the president at the time could move to cap monthly benefits at about $2,050, the AEI report proposes.
That change would reduce payments to beneficiaries who receive more than that amount and make Social Security solvent without adding new debt or increasing taxes.
At the same time, about half of all retirees and survivors would still receive their full benefit payments. Notably, no retiree would be pushed into poverty, according to the research.
If the fund depletion date were crossed, lawmakers would face an unprecedented situation.
What happens next would depend on the interpretation of Constitutional law. That could prompt litigation, the report notes, including from beneficiaries who may not receive the benefits they were promised. More

The New York Stock Exchange.
Michael M. Santiago | Getty Images

Stocks @ Night is a daily newsletter delivered after hours, giving you a first look at tomorrow and last look at today. Sign up for free to receive it directly in your inbox.
Here’s what CNBC TV’s producers were watching as the Dow Jones Industrial Average snapped a three-day win streak, and what’s on the radar for the next session.

Starboard Value’s investment in Kenvue

We’ll find out a lot more on Tuesday when Starboard’s Jeff Smith joins CNBC TV’s David Faber.
Kenvue shares shot up 5.5% Monday as investors got behind Starboard.
Kenvue was spun off of Johnson & Johnson last year.
The stock is flat since the company started trading more than a year ago.
After Monday’s jump, the stock is 2.7% from the 52-week high.
As of Monday’s close, Kenvue has a 3.6% dividend yield.
Kenvue is the company that makes Listerine, Aveeno, Tylenol and Zyrtec.

Stock chart icon

Kenvue in 2024

GE Aerospace reports before the bell

GE Aerospace reports in the morning.
It is just off the 52-week high hit last week.
The stock is up 90% so far in 2024 and up about 130% in a year.
Over the past three months, GE is up 22%.

General Motors reports before the bell

GM also reports Tuesday morning.
The stock is 3% from the July high.
Shares fell as low as $26.30 in the days following the 2023 United Auto Workers’ strike.
The stock is up 86% from that level.
So far in October, GM is up 9%.
In the past three months, GM is up 1%.
CNBC TV’s Phil LeBeau will cover it all.

Stock chart icon

General Motors shares over the past three months.

The defense companies report

CNBC’s Morgan Brennan will cover Lockheed Martin and RTX on Tuesday.
Lockheed hit a new high Monday. The stock is up 29% in the last three months.
RTX is right near the high hit last week.
The stock is up 22.5% over the past three months.
RTX and Lockheed are both in the middle of the pack as far as where the defense stocks stand in October. BWX Technologies is up about 17% this month, and Elbit Systems is up nearly 7%. Howmet Aerospace is up 6% month to date.

Verizon reports before the bell

The communications stock is up 5% in three months.
Verizon is 3.6% from the Sept. 30 high.
As of tonight, the stock has a dividend yield of 6.2%.
AT&T has a dividend yield of 5.1% tonight.
AT&T is up 13% in three months.

Stock chart icon

Verizon Communications in the past three months.

Texas Instruments

IPOs

Several debuts are expected on Wall Street Tuesday: SAG Holdings, which is a Cayman Islands holding company that specializes in the auto market. There’s also Huhutech, a China-based industrial company, as well as Jinxin Technology and Aldel Financial.
The Renaissance IPO ETF (IPO) hit a new high Monday. The ETF is up 46% in the last year. More

If you need a preparer for the 2025 filing season, now is the time to start looking, experts say.
However, vetting is important because there are no federal licensing or competency requirements, and some paid preparers have no training or experience.
You can start with referrals and double-check credentials through the IRS and state licensing websites.

Leopatrizi | E+ | Getty Images

Most tax preparers don’t have credentials

Despite the talent shortage, vetting is important because “pretty much anyone can call themselves a tax preparer,” Young said.
The IRS receives more than 160 million federal tax returns every year and most come from paid preparers, according to the National Taxpayer Advocate’s 2024 Purple Book of legislative recommendations.

There are no federal licensing or competency requirements, and some paid preparers have no training or experience, the report noted. Under current law, the minimum requirement for paid professionals is an IRS-issued preparer tax identification number, or PTIN.
However, certified public accountants, enrolled agents and attorneys — professionals with unlimited representation rights before the IRS — generally pass competency tests and have continuing education requirements.
Free preparation options like Volunteer Income Tax Assistance, or VITA, and Tax Counseling for the Elderly, or TCE, also have competency standards.  

How to vet your tax preparer

Unlike big box preparers, many tax professionals don’t accept walk-in traffic and operate mainly by referral, according to Tom O’Saben, an enrolled agent and director of tax content and government relations at the National Association of Tax Professionals.
“Talk to your friends and associates who have had a good experience with their [tax] professional,” he said. “Reach out to them now to see if they’re taking new clients.”
You should also weigh fee structure and availability outside the traditional tax season, which you may need if issues arise, Young said. “Cost is a big factor, but it shouldn’t be the only basis for your decision.”

The IRS keeps a database of credentialed preparers, including those who participate in the agency’s Annual Filing Season Program, which includes yearly refresher tests and continuing education.
You can check CPA and attorney licenses through state boards. Since the IRS oversees enrolled agents, you can email the agency to check licenses. More

Shoppers may spend $1,778 on average this holiday season, up 8% compared with last year.
Americans are set to rack up even more credit card debt as the holidays kick off.
Here’s how to get this season’s shopping tab under control without feeling like a Grinch.

Customers visit the Macy’s Herald Square store in New York City on Dec. 17, 2023.
Kena Betancur | Corbis News | Getty Images

For some shoppers, the upcoming holiday season may lead to significant credit card debt. Meanwhile, some people are still paying off debt from last year’s gift buying.
In fact, 28% of shoppers who used credit cards have not paid off the presents they purchased for family and friends last year, according to a recent holiday spending report by NerdWallet. The site polled more than 1,700 adults in September.  

“Between buying gifts and booking peak-season travel, the holidays are an expensive time of year,” said Sara Rathner, NerdWallet’s credit cards expert. “Not only are consumers at risk of getting into credit card debt, but that debt can stick around long after the decorations come down.”
More from Personal Finance:2 in 5 cardholders have maxed out a credit card or come close2.5% adjustment to Social Security benefits coming in 2025’Fantastic time’ to revisit bonds as interest rates fall
The stakes are higher in 2024 with credit card debt already at $1.14 trillion.
This year, spending between Nov. 1 and Dec. 31 is expected to increase again to a record total of $979.5 billion to $989 billion, according to the National Retail Federation.
Shoppers may spend $1,778 on average, up 8% compared with last year, Deloitte’s holiday retail survey found. Most will lean on plastic: About three-quarters, 74%, of consumers plan to use credit cards to make their purchases, according to NerdWallet.

Meanwhile, credit cards are one of the most-expensive ways to borrow money. The average credit card charges more than 20% — near an all-time high.

How to avoid overspending

“Somehow it’s been programmed into the American consumer, that essentially says ‘I have to spend a lot of money on people I care about,'” said Howard Dvorkin, a certified public accountant and the chairman of Debt.com.
It doesn’t have to be that way, he said.

“There’s no magic wand, we just have to do the hard stuff,” said Candy Valentino, author of “The 9% Edge.” Mostly that means setting a budget and tracking expenses.
Valentino recommends reallocating funds from other areas — by canceling unwanted subscriptions or negotiating down utility costs — to help make room for holiday spending.
“A few hundred dollars here and there really adds up,” she said. That “stash of cash is one way to set yourself up so you are not taking on new debt.”

How to save on what you spend

Valentino also advises consumers to start their holiday shopping early to take advantage of early deals and discounts or try pooling funds among family or friends to share the cost of holiday gifts.
Then, curb temptation by staying away from the mall and unsubscribing from emails, opting out of text alerts, turning off push notifications in retail apps and unfollowing brands on social, she said.
“It will lessen your need and desire to spend,” Valentino said.

Also consider an investment, such as individual stocks or bonds or a charitable donation, instead of gifts to create a more lasting impression. Making something from scratch, such as cookies, a candle or a sugar scrub, may also prove especially meaningful, Valentino said.
Subscribe to CNBC on YouTube.

Don’t miss these insights from CNBC PRO More

When real estate agents guide you through a home for sale, they’re required to point out physical or material defects in the property. In most states, a recent death in the home doesn’t count.
If a death in the home or other stigmas are factors you consider in a home purchase, ask about the property’s history.
Stigmatizing events include murder, suicide, alleged hauntings or a notorious previous owner.

Matt Champlin | Moment | Getty Images

When a real estate agent works with a prospective homebuyer, they’re required to point out physical or material defects in the property.
A death on the property? It depends on the state where the house is located. In most states, death doesn’t count as a material defect requiring disclosure.

Some homes are considered “stigmatized properties,” or dwellings that have been “psychologically impacted by a past or suspected event on the property, but has no physical impact of any kind,” according to the National Association of Realtors. 
Stigmatizing events include murder, suicide, alleged hauntings or a notorious previous owner, NAR noted. 

Different people interact with stigmatized properties in different ways.

Harrison Beacher
real estate agent and managing partner at Coalition Properties Group in Washington, D.C.

Which states require disclosure of death

Listing agents will have different requirements state-by-state on what to disclose to a buyer. Most states don’t have any death disclosure requirements.
Among those that do, rules can be straightforward and explicitly require prior death to be disclosed to homebuyers. Even those rules may only apply to recent deaths or more stigmatizing events such as murder.
In California, for example, a seller must disclose if someone died in the house within the last three years.

Meanwhile, in Alaska, the listing agent must communicate if any known murders or suicides happened in the last year. South Dakota requires sellers to disclose deaths within the last 12 months.

Regulations will depend on the stigma in question. In New York, a seller doesn’t need to disclose if the house was the site of death or crime. But if a seller has made claims of paranormal activity in the home, they have to inform the buyer of supposed ghosts in the property, experts say.
More from Personal Finance:Buying a home? Here are some key steps to considerAn insurance provision can help with living expenses after a natural disasterGen Zers are willing to buy fixer-upper homes
Often, it falls on the homebuyers to directly ask the agent about the property’s history. States such as Georgia do not require real estate agents or sellers to disclose upfront if the home was the site of a death. But they have to be truthful if a prospective buyer inquires.
Outside of what the disclosure laws are in a specific state, listing agents have a fiduciary responsibility to the sellers, said Harrison Beacher, a real estate agent and managing partner at Coalition Properties Group in Washington, D.C.
“If somebody asks me about it, I can point them towards empirical resources to get answers, but I’m not under any requirements to go into detail,” said Beacher.
Here’s what homebuyers should know about properties that have been stigmatized by murder, suicide, alleged hauntings or notorious prior owners, and how to find more detail about the home’s history.

Who buys stigmatized properties?

Stigmatized homes can be a “turnoff” for homebuyers who believe in ghosts or spirits, said Daryl Fairweather, chief economist at Redfin, an online real estate brokerage firm.
“Some people are spooked away,” said Fairweather, while others might “seek out those homes.”
Nearly three-quarters, 72%, of potential homebuyers said they would buy a “haunted” house for a lower price, according to a new report by Real Estate Witch, a data site owned by Clever Real Estate. The site polled 1,000 U.S. adults in September to discover their views on buying and selling supposedly haunted houses.
Some buyers don’t care what happens in a stigmatized property “if it can get them a discount on price,” Beacher said.
About 43% of polled Americans said they would offer at least $50,000 below market value on a haunted house, according to the Real Estate Witch report.
In 2021, the LaBianca mansion, the home where Leno and Rosemary LaBianca were murdered by Charles Manson’s followers in 1969, sold for $1.875 million. The previous owner, Zak Bagans, a paranormal activity investigator, originally put the house on the market for $2.2 million, but later cut the price to $1.9 million.
“Different people interact with stigmatized properties in different ways,” Beacher said.

In 2023, about 67% of would-be buyers said they would buy a supposedly haunted house if it met their wants, like having appealing features, the right location or a more affordable price, according to Zillow.
But buyers should know that “every property has a history,” said Connie Vavra, managing broker of RE/MAX, a real estate brokerage franchise, at Elgin, Illinois.
“We can’t erase the history that’s been done there … That doesn’t mean that you can’t have good energy in there and have [a] good experience living in that home.”

How to find out a home’s history

If you have questions or concerns about a property’s history, the first thing you should do is ask the real estate agent. In some states, real estate agents need to provide truthful information upon a buyer’s request, or at the very least, point you toward the right direction to find out.
Here are two ways to check, experts say:
1. Talk to neighbors and officials
Keep an eye out for the property’s neighbors, experts say. Besides the real estate agent, neighbors can give you first-hand experience of the area, as well as information about the previous homeowners. 
You can also call the county manager where the property is located, said Theresa Payton, a former White House chief information officer who is now the CEO of cybersecurity firm Fortalice Solution.

Ask the county manager’s office about the property you’re considering and if there are any crime records associated with it, she said. 
2. Follow the paper trail
An internet search can turn up details. If police responded to any activity at the house, the event will likely be reported in the newspaper and it would be public record, Payton said.
You can do an advanced search online through newspaper headlines and police reports, as “all that information is free,” she said. More

The Nvidia headquarters in Santa Clara, California.
Loren Elliott | Bloomberg | Getty Images

Optimism around artificial intelligence has helped lift the S&P 500 in 2024, boosting key chip stocks and power plays in the utilities space.
Investors seeking sustainable returns will need to look for companies with solid long-term growth potential.

To this end, top Wall Street analysts, with their expertise, can help investors understand the key drivers that could support a company’s long-term growth and pick stocks that are likely to deliver lucrative returns.  
Here are three stocks favored by the Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.
Fortinet
This week’s first pick is cybersecurity company Fortinet (FTNT). The company aims to become a leader in the secure access service edge space. Fortinet leverages machine learning and AI technologies to offer cybersecurity solutions.
Recently, TD Cowen analyst Shaul Eyal reaffirmed a buy rating on Fortinet stock and raised the price target to $90 from $75. The analyst stated that channel checks and discussions with industry participants indicate continued recovery in FTNT’s business and healthy demand across the company’s broad product portfolio.
In fact, channel checks suggest that Fortinet’s third-quarter revenue and billings will reach the top end of the company’s outlook, with the possibility of a modest upside. Also, the analyst is confident about his Q4 revenue growth estimate of 12%, given “healthy closure rates and further pipeline building into a seasonally strong 4Q24.”

Eyal also noted that one of the key drivers supporting Fortinet’s ongoing recovery is the solid traction in the company’s operational technology products, backed by a long-term replacement cycle that will replace legacy OT systems. The analyst added that FTNT is also gaining from the adoption of AI-led networks and the company’s growing focus on cloud security, which was bolstered by the recent acquisition of Lacework.
Eyal ranks No. 12 among more than 9,100 analysts tracked by TipRanks. His ratings have been profitable 71% of the time, delivering an average return of 27.3%. (See Fortinet Insider Trading Activity on TipRanks) 
GitLab
We move on to GitLab (GTLB), an AI-powered, cloud-based software company that helps organizations enhance developer productivity, improve operational efficiency, and reduce security and compliance risks.
Following meetings with the company’s management, Mizuho analyst Gregg Moskowitz reiterated a buy rating on GitLab stock with a price target of $62. The analyst noted that management is highly confident about capturing further opportunities in the $40 billion total addressable market. Currently, the two vendors, GitLab and Microsoft’s GitHub, together account for just about 5% of the market share in the software development life cycle space.
In particular, management expects the momentum for GitLab’s Duo Pro product to pick up in 2025, fueled by the generative AI wave. The analyst also highlighted the company’s optimism about the GitLab Dedicated offering, which is witnessing better-than-anticipated customer interest and driving higher average revenue per unit.
Overall, Moskowitz remains “constructive on GTLB’s ability to execute and grow at a high level over the medium-to-longer term, due in large part to multiple upside levers that include seat expansion, price increases, and upsell potential.”
Moskowitz ranks No. 321 among more than 9,100 analysts tracked by TipRanks. His ratings have been profitable 58% of the time, delivering an average return of 12.6%. (See GitLab’s Hedge Fund Activity on TipRanks) 
Nvidia
Finally, let’s look at semiconductor giant Nvidia (NVDA). The company has been seeing stellar revenue growth rates, driven by robust demand for its advanced GPUs (graphics processing units) in building artificial intelligence models and applications.
Following an investor meeting with Nvidia’s management, Goldman Sachs analyst Toshiya Hari reiterated a buy rating on NVDA stock and raised the price target to $150 from $135.
The analyst’s optimism after the meeting reflects a “better appreciation of the company’s competitive moat and, importantly, the projected increase in Inference workload complexity as well as its implications for future compute demand.”
Hari noted Nvidia’s confidence about the demand backdrop, given continued spending on accelerated computing and GPUs by data center operators amid the generative AI wave. Management also highlighted the prospects for its Blackwell platform. The analyst thinks that Blackwell’s launch and ramp-up are not just near- and medium-term revenue growth drivers, but also key factors that will enhance Nvidia’s competitive advantage.
Hari increased his revenue estimates for fiscal 2025-2027 to reflect recent industry developments like increased cloud spending, solid order trends at the major AI server original equipment manufacturers like Dell and Hewlett Packard Enterprise, and an improved chip-on-wafer-on-substrate shipment outlook.
Hari ranks No. 32 among more than 9,100 analysts tracked by TipRanks. His ratings have been successful 68% of the time, delivering an average return of 27.5%. (See Nvidia Stock Charts on TipRanks) More