This Week’s Money Map:

• Insurance tax deductions you're probably missing

• What a looming 10% credit card rate cap could mean for you

• 7 insurance policies quietly draining your wallet

• Money for babies? Everything you need to know about the new federal child accounts

🧾 Insurance tax deductions you're probably missing

Tax season is here, and every legal deduction helps you keep more of your hard‑earned money. Insurance premiums are a big line item in most budgets, but only some of those payments can actually lower your tax bill. This guide breaks down what you can and cannot deduct in 2026.

The biggest opportunity: Health insurance
Self‑employed individuals have one of the best deals here. You may be able to deduct up to 100% of qualifying health insurance premiums for yourself, your spouse, and dependents under age 27. Employees have a tougher path because premiums paid with pre‑tax dollars through an employer generally are not deductible again.

If you pay some premiums out of pocket, you can include them as itemized medical expenses. But the catch is significant: your total medical expenses must exceed 7.5% of your adjusted gross income before any of those costs help reduce your taxes.

New for 2026: certain Bronze and Catastrophic health plans now qualify as HSA‑compatible, which can open up additional tax‑advantaged savings when paired with a Health Savings Account.

Only for business use: Car insurance
Personal auto insurance is not tax‑deductible — the IRS treats it as a personal expense. But if you are self‑employed, a freelancer, or an independent contractor, you can deduct car costs tied to business use in two ways:

1. The standard mileage method lets you deduct a set amount per mile driven for business in 2026, with insurance already baked into that rate.

2. The actual expenses method lets you deduct the business percentage of your premiums directly, based on how much you drive for work.

Limited but possible: Home insurance
Standard homeowners insurance on your primary residence is not deductible because it’s treated as a personal expense. There are, however, a few important exceptions:

• Rental property owners can typically deduct the full cost of homeowners insurance as a business expense.

• Home‑based business owners may deduct the portion of premiums that corresponds to their dedicated office space.

A new rule beginning in 2026 treats private mortgage insurance as deductible mortgage interest for taxpayers who itemize, but this applies only to PMI, not standard homeowners coverage.

Often deductible: Business insurance
If you run a business, the IRS generally allows deductions for business insurance that is ordinary and necessary for your line of work. This can include general liability, professional liability, commercial property, workers’ compensation, and business interruption coverage.

Sole proprietors usually report these deductions on Schedule C, whereas partnerships and S‑corporations use their respective business returns. When in doubt about a specific policy, a quick conversation with a tax professional is wise.

What you cannot deduct
Not all insurance fits into the “tax break” category. Life insurance premiums are usually not deductible when you or your family are the beneficiaries. Disability insurance that replaces your income is also not deductible.

💳 What the looming 10% credit card rate cap could mean for you

Many credit cards today charge somewhere in the low‑ to high‑20% range in interest. A new proposal from Washington, D.C., is exploring the idea of capping credit card rates at 10% for a limited period. It sounds like a huge win on paper, but the real‑world impact is more nuanced.

What policymakers are proposing
In early January, the administration floated the idea of a one‑year 10% ceiling on credit card interest rates. The concept is that a temporary cap could save households billions of dollars in interest charges if it fully took effect. Even lawmakers who normally disagree acknowledge that card rates have climbed sharply in recent years.

Why banks are nervous
Credit card debt is unsecured, meaning there is no home or car backing the loan if a borrower stops paying. Lenders argue that significantly lower caps could make it harder to approve customers with lower credit scores while keeping programs profitable. They also warn about potential changes to rewards programs, higher annual fees, and tighter credit limits.

There is some logic to the concern: if certain customers become unprofitable under a cap, banks may simply reduce the amount of credit they extend to those groups. That does not mean a cap could not help many borrowers, but it does mean the impact would likely be uneven.

What to do right now (regardless of what happens)
If you’re currently in debt, the most reliable way to save on credit card interest is still within your control. A few practical steps:

• Consider a balance transfer card that offers a 0% introductory APR for a set period. Used correctly, that window can help you pay down debt faster (because you’re not accumulating additional interest).

• Stop adding new charges while you work down your existing balance. Every new purchase at a high interest rate makes the payoff timeline longer.

• Look into a debt consolidation loan with a lower fixed rate, especially if your card APR is very high and your credit profile allows you to qualify for better terms.

💸 7 insurance policies quietly draining your wallet

You’re likely paying for protection you will never use. The average American household spends over thousands annually on insurance premiums, and a chunk of that money covers policies that sound essential but deliver almost nothing in return. Here’s what to cut before your next renewal.

Collision coverage on older cars
As cars lose value, collision coverage often stops being worth the cost. If your car is worth $6,000 and you’re paying $800 a year with a $1,000 deductible, the most you’d ever get after a total loss is $5,000 — so many drivers choose to drop collision once a car falls below about $4,000–5,000 and they can afford to replace it themselves.

Extended warranties on everything
That $99 protection plan on your new TV? Skip it. Consumer Reports found that more than half of consumers who purchased extended warranties never used them. Manufacturer warranties already cover defects during the period when problems are most likely to occur. Your credit card probably offers extended warranty protection for free when you use it for purchases.

Rental car insurance at the counter
If you already have a standard car insurance policy, you’re covered when you drive a rental. Your existing collision and comprehensive coverage extends to rental vehicles in most cases. Major credit cards also provide rental car insurance benefits when you decline the coverage offered by the rental company.

Credit card protection insurance
Banks aggressively market insurance that pays your credit card balance if you die or become disabled. The premiums are often tied to the amount of debt you have, making credit insurance an expensive way to cover your debts. Federal law already caps your fraud liability at $50, and most banks offer zero liability anyway.

Life insurance on your children
This one sounds sensible until you think it through. Most children are not breadwinners — unless your family depends on income earned by your child, there’s no need to insure their life. A 529 college savings plan or custodial investment account builds real value for their future.

Accidental death insurance
Accidental death insurance is less expensive than standard life insurance, but only covers deaths and permanent injuries from certain types of accidents. The restrictions make payouts rare. A standard term life policy covers death from any cause and costs only marginally more.

Your home insurance might need trimming, too
Homeowners can save an average of $512 off their annual rate by raising their deductibles from $500 to $2,500. The average homeowner makes a claim only once every 10 years. If you have a solid emergency fund, a higher deductible makes mathematical sense.

While you’re at it, review your policy for scheduled personal property riders you no longer need. That expensive jewelry you insured five years ago may no longer be in your possession. Old electronics coverage is especially wasteful — tech depreciates fast.

What you should actually do this week

• Pull out every insurance policy you own and check for overlap with credit card benefits

• Calculate whether your car is worth more than your annual collision premium plus deductible

• Review your home insurance deductible and scheduled items

• Call your insurers and ask about discounts you might be missing

The goal isn’t to be underinsured — it’s to stop paying for coverage that protects no one except the insurance company. Your money has better places to be.

👶 Money for babies? What you need to know about the new federal child accounts

Families welcoming a baby between January 1, 2025, and December 31, 2028, may soon have access to a new federal savings account designed to give children a head start. The law behind this program informally brands these as “Trump Accounts,” but the important part is how the account works and whether it fits your plan.

What this new account is
Think of it as a long‑term investment account for kids that later converts into a retirement account. Under the One Big Beautiful Bill Act, families can contribute up to $5,000 per year to eligible, low‑cost index funds inside the account. The money grows tax‑deferred until your child turns 18, when the account transitions into a traditional IRA under their name.

A key feature is a one‑time $1,000 federal deposit for each eligible child born between 2025 and 2028. That deposit does not reduce how much you can contribute yourself.

Why the long‑term math can be powerful
If contributions start early and continue consistently, the balance can potentially grow significantly by the time your child becomes an adult. Under optimistic assumptions used in official estimates, a baby born in 2026 with steady contributions could see the account grow to hundreds of thousands of dollars by age 18, and possibly into seven figures over a longer time horizon.

Those projections depend on market returns, contribution patterns, and fees, so they are not guarantees. Investment values will fluctuate, and it is possible to end up with more or less than the example figures.

Who qualifies for the $1,000
To qualify for the federal deposit, your child typically needs to:

• Be born between January 1, 2025, and December 31, 2028

• Be a U.S. citizen

• Have a Social Security number

• Be claimed on a tax return that includes the required form to request the deposit

Children under 18 who were born before 2025 can still open one of these accounts but are not eligible for the $1,000 federal contribution. Some private and philanthropic programs may provide additional contributions for certain families based on factors like age and local income levels.

How to open the account
The program is scheduled to begin accepting contributions and funding the federal deposits starting July 4, 2026. The basic steps are expected to look like this:

• File the designated IRS form with your 2025 tax return when the form becomes available

• Register through the official federal portal once it launches

• Follow the instructions from the Treasury and IRS on selecting or confirming a trustee and completing the account setup

After the setup is complete, the Treasury deposits the $1,000 for eligible children and you can start making your own contributions, subject to the program’s annual limits and investment menu.

Important rules and limitations
During the growth period before age 18, investments will be limited to approved mutual funds or ETFs that track major U.S. indexes and meet low‑fee requirements. That design aims to keep costs low and diversification high.

Withdrawals are generally not allowed until your child turns 18. Once the account becomes a traditional IRA, standard IRA rules and penalties apply, with certain exceptions for specific uses like education or a first‑time home purchase.

Coordinating with your other goals
This new account is best viewed as a complement to your existing plans, not a replacement. If college is a top priority, 529 plans still offer tax‑free withdrawals for qualified education expenses. The child account described here treats future distributions as taxable income, even though growth is tax‑deferred along the way.

If your employer offers to contribute to this new account as a workplace benefit, that can be a useful extra boost, but it should still fit into your broader mix of retirement, education, and emergency savings.

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The MoneyGeek Team

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