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    Andersen Ross | Blend Images | Getty Images Amid soaring inflation, the IRS on Tuesday announced higher federal income tax brackets and standard deductions for 2023. The agency has boosted the income thresholds for each bracket, applying to tax year 2023 for returns filed in 2024. These brackets show how much you'll owe for federal income taxes on each portion of your "taxable income," calculated by subtracting the greater of the standard or itemized deductions from your adjusted gross income. Higher standard deductionThe standard deduction will also increase in 2023, rising to $27,700 for married couples filing jointly, up from $25,900 in 2022. Single filers may claim $13,850, an increase from $12,950.More from Year-End PlanningHere's a look at more coverage on what to do finance-wise as the end of the year approaches: How the uber-rich pass down wealth when markets are down How to make inflation-protected bonds work in your portfolio Series I bond interest expected to fall to roughly 6.48% in November Other tax provisions adjustThe IRS also boosted figures for dozens of other provisions, such as the...
    In three weeks, California will begin sending Middle Class Tax Refund payments to 23 million qualifying residents. The state set aside $9.5 billion from its $308 billion annual budget for the inflation-relief payments. Initially proposed as a gas rebate, the state Legislature and Gov. Gavin Newsom settled on a plan to return some of the state’s $98 billion budget surplus to residents struggling with rising prices amid record-high inflation. “California’s budget addresses the state’s most pressing needs, and prioritizes getting dollars back into the pockets of millions of Californians who are grappling with global inflation and rising prices of everything from gas to groceries,” Newsom, Senate President Pro Tem Toni Atkins and Assembly Speaker Anthony Rendon said in June when the provision was signed. Payments will range from $200 for certain high-income earners to $1,050 for married, joint tax filers. Similar to the pandemic-related Golden State Stimulus payment programs, recipients of the MCTR must be California residents and tax filers in order to qualify. The state will base relief payments on adjusted gross income found in 2021 tax returns. Also...
    A NEW plan would return hundreds of dollars back to pockets of millions. Georgia gubernatorial candidate Stacey Abrams has revealed a proposal that would give up to $500 in tax rebates to residents. 1There are income restrictions under the proposalCredit: Getty Meanwhile, the state launched a similar rebate program in May. However, incumbent Governor Brian Kemp thus far has backed off offering any additional tax rebates or relief payments to help Georgians offset inflation, The Albany Herald reports.  Who would be eligible?  This time around, there would be income restrictions under Ms Abraham’s plan. All families making below $250,000 would qualify for a rebate check. READ MORE ON PAYMENTSACT FAST The two direct payment deadlines in weeks worth up to $750 affecting thousands FINANCIAL RELIEF Thousands of Americans to get $200 checks - see when they are coming Here’s the breakdown of how much you would receive, which will depend on your filing status: Single filers: $250 Heads of households: $375 Married filers: $500 Ms Abrahams, who lost a previous governor bid against Mr Kemp four years ago, criticized the incumbent for giving handouts to the...
    by Stan Greer   For decades, states like New York, California and Illinois have evidently been paying a high price for allowing dues-hungry labor union bosses to continue getting workers fired for refusal to bankroll their organizations.  Year after year, far more taxpayers have been leaving forced-unionism states than have been moving into them.  The cumulative loss of taxpayers has been cutting into their revenue bases. Recently released data from the Internal Revenue Service (IRS) indicate the cost of forced unionism soared by more than 50% in the Tax Filing Year 2019, compared to the year before. It shouldn’t require fiscal catastrophes to persuade state elected officials to stop hurting the vast majority of their constituents just so the special privileges of a relative handful of union bosses can be perpetuated and even expanded.  But state insolvency may well arrive before Big Labor politicians in states like New York, California and Illinois acknowledge the truth about the devastating effects of forced unionism. The facts speak for themselves. As a group, the 23 states that still lack Right to Work laws lost a net...
    Jeffrey Coolidge | Photodisc | Getty Images The IRS is working to boost its audit rates for the wealthiest Americans, according to a statement released with the agency's annual Data Book, covering activities for the 2021 fiscal year. While plummeting audits have drawn scrutiny from Congress, percentages have doubled for filers making over $100,000 to more than $10 million over the past seven months, according to the statement.  What's more, audits of higher-income taxpayers often come later in the statutory period — within three years of a filing — meaning audits for 2019 may still happen through at least 2023, the agency says. More from Personal Finance:Tax professionals 'horrified' by IRS destroying 30 million filers' dataIRS insists destruction of taxpayer data won't affect payersLate tax refunds will earn 5% interest — but it's taxable Still, the IRS says "resource constraints" have limited the agency's ability to audit high net worth individuals, large corporations and complex business structures, and reviews have significantly declined since the 2010 tax year.   "Audit rates for taxpayers with incomes of more than $200,000 decreased the most, largely...
    Gorodenkoff | Istock | Getty Images If you're happily saying "I do" this year, be aware that the IRS can be a real buzzkill. While many couples end up paying less in taxes after tying the knot, some face a "marriage penalty" — meaning they end up paying more than if they had remained unmarried and filed as single taxpayers. The penalty can happen when tax-bracket thresholds, deductions and credits are not double the amount allowed for single filers — and that can hurt both high- and low-income households. More from Personal Finance:Inflation is costing households an extra $311 a monthNearly 7 in 10 Americans want to live to 100, study findsA Roth IRA conversion could pay off in a down market "It used to be more pervasive before the [2017] Tax Cuts and Jobs Act," said Garrett Watson, a senior policy analyst for the Tax Foundation. "It's more common to have a marriage bonus than a penalty, but the details matter." With a record 2.5 million weddings expected this year, newlyweds — especially those who earn similar amounts —...
    CALIFORNIA -- More electric cars are available now more than ever. Are you looking to ditch the pump for the plug?More specifically, would an electric car meet your driving needs? If you're inclined to quickly answer "no," here's a revealing test you can do:For a week or two, make careful notation of how many miles you drive each day including commuting, shopping or family activities. You might be surprised that you don't drive as many miles in a single day as you think you do.An April 2021 AAA driving survey found the average American drives about 30 miles per day. Those living in rural non-metro areas drove - on average - a little over 35 miles per day.Every new electric car on the market can easily make it at least 100 miles on a charge. An increasing number can go over 200, and some can easily do more than 300 miles before having to be plugged in.As for the cost of the cars themselves, many are pricey, but a number of models are now available starting at about $40,000. Plus,...
    President Joe Biden introduces his budget request for fiscal year 2023 on March 28, 2022 in Washington.Anna Moneymaker | Getty Images President Joe Biden released his 2023 federal budget request on Monday, calling to hike the top marginal income tax rate to 39.6% from 37%, a proposal floated by the administration last year. The higher rates apply to married couples filing together with taxable income over $450,000, heads of household above $425,000, single filers making more than $400,000 and $225,000 for married taxpayers filing separately, according to the Treasury Department. If enacted, the change may hit higher earners beginning after Dec. 31, 2022, and income thresholds may adjust for inflation after 2023. More from Personal Finance:Most medical debt is coming off credit reports. What to do if yours doesn'tHow to avoid a tax filing rejection if last year's return is still pendingThere's a tricky cryptocurrency question on your tax return However, increases to income tax rates may be difficult to pass, with previous pushbacks from Sen. Kyrsten Sinema, D-Ariz. Moreover, Democrats have a short window to reach an agreement before...
    ONE month into the 2022 tax season, the IRS has released a timely update on the progress of tax returns. Many are reporting a fairly painless experience, with the average filer netting $2,323. 1The Covid pandemic created special tax considerations for the 2022 seasonCredit: Getty This is based on the almost 9million refunds processed by the agency by February 11. The tax filing season for 2021 returns began on January 24, 2022. Below we explain what you need to know. What is the quickest way to file? If you're not one of the 9million Americans who have already filed and received their tax return, there are a few things to consider. Importantly, if you are undecided on direct deposit or paper return, opt for direct deposit, the IRS says. Most read in MoneyBIG BOOST Way to get final $1,800 boost revealed as $8,000 payment offered if you qualifyCASH IN Exact date Social Security $1,657 checks will be deposited as FECA count finalizedCHECK PLEASE New $600 one-time payments could be sent after deadline to claim $1,100MEAL DEAL $870...
    "Taxes" engraved at IRS headquarters in Washington, D.C.Andrew Kelly | Reuters Next week may be the last chance for some filers to avoid a tax penalty and reduce their bill in April.   The deadline for fourth-quarter estimated tax payments is Jan. 18, applying to income from self-employment, small businesses, gig economy work, investments and more. And if you missed previous quarterly payments for 2021, you can send extra now, which may reduce or eliminate late penalties, rather than waiting until the April filing deadline, according to the IRS. "Everyone needs to pay taxes," said certified financial planner Bryan Hasling, partner at Lodestar Private Asset Management in Alamo, California. "And the IRS strongly prefers that you pay them steadily across the year as opposed to waiting until the last minute — which is tax day."More from Smart Tax Planning:Here's a look at more tax-planning news. IRS may tax NFTs, crypto differently. Here's a look Why your refund may be smaller this year Kiss tax breaks for unemployment benefits goodbye The fastest way to make a quarterly estimated tax payment...
    Ed Jones | AFP | Getty Images Inflation is still rising, and while many notice the surge in day-to-day expenses, climbing prices may also affect your tax bill, experts say. The Consumer Price Index, a key inflation gauge, rose by 7% in December compared to the prior year, the fastest increase since 1982, according to the U.S. Department of Labor.  Federal Reserve Chairman Jerome Powell said he expects a series of rate hikes this year to combat the growing cost of living.   More from Personal Finance:Tax filers should expect delays as the IRS grapples with limited staffingEverything you need to know about the new, free at-home Covid testsHow those child tax credit checks may affect your tax refund this year While the IRS boosted federal income tax brackets for 2022, standard deductions, 401(k) plan limits and more, other provisions remain unchanged, leading to higher levies over time. "It's a hodgepodge of things that get left out," said certified financial planner Larry Harris, director of tax services at Parsec Financial in Asheville, North Carolina. "And it's not just hitting wealthy taxpayers."...
    Rep. Bill Pascrell, D-N.J., speaks at a news conference announcing the State and Local Taxes (SALT) Caucus outside the U.S. Capitol on April 15, 2021.Sarah Silbiger | Bloomberg | Getty Images House Democrats' $1.75 trillion spending package boosts the limit on the federal deduction for state and local taxes, known as SALT, to $80,000 through 2030. However, many filers don't know how the change to SALT may affect their bottom line, experts say. "The SALT cap increase will have the biggest effect on high-income-tax states like New York, California and New Jersey," said certified financial planner Matthew Benson, owner at Sonmore Financial in Chandler, Arizona. Filers subtract the greater of the standard or itemized deductions from adjusted gross income to reach taxable income, the number used to calculate their bill. More from Personal Finance:House Democrats pass spending package with $80,000 SALT cap through 2030Big takeaway for Build Back Better: 'lack of change' for wealthy Americans' taxesThese states offer a workaround for the SALT deduction limit For 2021, the standard deductions are $12,550 for single filers or $25,100 for married couples...
    Pelosi also claimed, "Eighty-six million middle-class families will see a tax increase while they advertise it as a middle-class bill." The assertion earned two Pinocchios from the Washington Post. However, new analysis shows the Republicans' 2017 tax cuts benefited middle-income and working-class Americans the most. The Heartland Institute — a free-market think tank — analyzed data from the U.S. Internal Revenue Service. The analysis declared that assertions made by Democrats about the GOP's tax cut law were incorrect. The Heartland Institute examined IRS data from 2017 to 2018, the first year the tax cuts went into effect. "The Tax Cuts and Jobs Act reduced average effective income tax rates for filers in every one of the IRS’s income brackets, with the largest benefits going to lower- and middle-income households," the report stated. "For example, after accounting for all tax deductions and credits, filers with an adjusted gross income (AGI) of $40,000 to $50,000 received an average tax cut of 18.2 percent," the Heartland Institute said. "The IRS data further show that the Tax Cuts and Jobs...
    A customer selects goods at a supermarket in New York, the United States, Aug. 11, 2021.Wang Ying | Xinhua News Agency | Getty Images As inflation surges, the IRS has boosted federal income tax brackets for 2022, standard deductions, 401(k) contribution limits and more. But other provisions remain unchanged, leading to higher tax bills over time. The consumer price index jumped by 6.2% in October compared to the prior year, the biggest hike in over three decades. And while dozens of tax changes will reflect higher costs, fixed provisions may squeeze filers as purchasing power wanes. "It's a hodgepodge of things that get left out," said certified financial planner Larry Harris, director of tax services at Parsec Financial in Asheville, North Carolina. "And it's not just hitting wealthy taxpayers." More from Personal Finance:Inflation pushes income tax brackets higher for 2022Make these investment moves to beat inflation, experts sayHome prices are now rising much faster than incomes, studies show For example, couples filing together selling their primary home may exclude up to $500,000 of profit from capital gains taxes ($250,000 for...
                        Florida’s Agricultural Commissioner Nikki Fried has failed to timely file her 2020 financial disclosure form with the Florida Commission on Ethics (FCOE). The form was due July 1. Max Flugrath, a spokesman for Fried said, “Commissioner Fried’s Form 6 is being finalized to ensure accuracy and will be submitted within the September 1 grace period.” Disclosure of financial interest is required by all constitutional officers as well as candidates for constitutional offices, and is submitted through what is known as Form 6. Form 6 records a filers net worth, assets, liabilities, income, and interests in specified businesses. Although Fried did not file by the deadline, the FCOE allows for a grace-period through September 1 that gives late filers a chance to turn in the form without accruing fines. However, after the grace period, late filers are charged $25 for each day the form is missing, for a maximum of 60 days or $1,500. Fried is not new to controversy surrounding the disclosure of her income and financial interests....
    Rep. Jamie Raskin, D-Md., made an unusual historical comparison as he and other Democrats pushed to eliminate or relax the $10,000 cap on state and local tax deductions. While speaking in favor of the policy that would chiefly benefit high earners in blue states, Raskin made a joke about Indian leader Mahatma Gandhi's 1930 Salt March protesting British colonial rule. DEMS PUSH FOR SALT CAP RELAX, REPEAL WOULD LARGELY BENEFIT THE WEALTHIEST, STUDY SHOWS "We've got to have a SALT march, like Gandhi did," Raskin said, generating laughter among his colleagues, according to NBC News. "Let's have a SALT march in America to restore some common sense to our tax policy." Raskin claimed middle-class people in his district are "severely affected" by the SALT (state and local tax) cap on Wednesday. In this image from video, House impeachment manager Rep. Jamie Raskin, D-Md., speaks during the second impeachment trial of former President Donald Trump in the Senate at the U.S. Capitol in Washington, Wednesday, Feb. 10, 2021. (Senate Television via AP) ((Senate Television via AP)) Democrats representing high-tax...
                      by Cole Lauterbauch  California residents of all ages and incomes are leaving for more tax friendly climates, and they’re taking billions of dollars in annual income with them. The Internal Revenue Service recently released its latest taxpayer migration figures from tax years 2018 and 2019. They reflect migratory taxpayers who had filed in a different state or county between 2017 and 2018, of which 8 million did in that timespan. California, the nation’s most-populous state, lost more tax filers and dependents on net than any other state. Minus incoming filers, California shed a net 165,355 tax filers and dependents between the two tax years, representing a loss of $8.8 billion in net adjusted gross income. Texas was the primary destination for California ex-pats, with 72,306 total exemptions leaving to go there. Neighboring Arizona saw 53,476 total filing exemptions come from California. The two states saw a gross income boost of $3.4 billion and $2.2 billion, respectively. Despite the annual losses, the Golden State still is the nation’s most populous and...
    California residents of all ages and incomes are leaving for more tax friendly climates, and they’re taking billions of dollars in annual income with them. The Internal Revenue Service recently released its latest taxpayer migration figures from tax years 2018 and 2019. They reflect migratory taxpayers who had filed in a different state or county between 2017 and 2018, of which 8 million did in that timespan. California, the nation’s most-populous state, lost more tax filers and dependents on net than any other state. Minus incoming filers, California shed a net 165,355 tax filers and dependents between the two tax years, representing a loss of $8.8 billion in net adjusted gross income. Texas was the primary destination for California ex-pats, with 72,306 total exemptions leaving to go there. Neighboring Arizona saw 53,476 total filing exemptions come from California. The two states saw a gross income boost of $3.4 billion and $2.2 billion, respectively. Despite the annual losses, the Golden State still is the nation’s most populous and benefits from a diversified economy that attracts high...
    Tasos Katopodis | Bloomberg | Getty Images President Joe Biden wants to raise the top income-tax rate for wealthy households to 39.6%, from the current 37%, to help finance his legislative agenda. That top rate would apply to single individuals with taxable income over $452,700 and married couples filing a joint tax return with income over $509,300, according to a budget proposal issued Friday by the Treasury Department. More from Personal Finance:Biden budget reiterates 43.4% top capital gains tax rate for millionairesCryptocurrency poses a significant risk of tax evasionDivorcees are using cryptocurrency to hide money It would also apply to heads of household with income exceeding $481,000 and married individuals filing separate tax returns with income over $254,650. Those income thresholds are lower than under current law, set by the 2017 Tax Cuts and Jobs Act. Zoom In IconArrows pointing outwards (By comparison, the 37% top individual rate applies to income exceeding: $523,600 for single filers and heads of household, $628,300 for married joint filers, and $314,150 for married separate filers.) The 39.6% top rate would kick in during the...
    RALEIGH, N.C. (AP) — North Carolina tax filers will get another month to complete their individual state returns, in keeping with the IRS decision to push its April 15 deadline back to May. The state Department of Revenue announced this week the traditional tax filing and payment deadline is now May 17, just like the new federal date. Tax officials cite giving people more time to deal with unusual tax circumstances brought on by the pandemic for the delay. State law gives Revenue Secretary Ron Penny the authority to extend the state deadline. But he can’t change other tax requirements, so for now interest is added on to payments made after April 15. Penny said in a news release that Gov. Roy Cooper and legislative leaders are willing to work on law changes to reflect the extension. They eliminated the interest mandate when last year's deadline was delayed. The department says the later deadline doesn’t apply to sales taxes or income tax withholdings, or to estimated tax payments due on April 15. Copyright 2021 The Associated Press. All rights reserved. This...
    Doug Mills/Zumapress Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.President Biden has struck a deal with Senate Democrats to tighten the income threshold for the proposed $1,400 stimulus checks, as his $1.9 trillion pandemic relief bill faces opposition in the Senate, and amid a push to pass the legislation before March 14—when several key pieces of December’s stimulus, including extended unemployment benefits, are set to expire. Several news outlets report that the new limits won’t change who is eligible for the full $1,400: individual filers earning up to $75,000 and joint filers earning up to $150,000 would still receive full checks. However, eligibility will tap out at much lower amounts than originally proposed: Individuals making more than $80,000 won’t receive anything, nor will joint filers with incomes in excess of $160,000. The bill passed by House Democrats last week contained higher cut-offs, with incrementally smaller payments for individuals earning between $75,000 and $100,000—and between $150,000 and $200,000 for couples.  The deal comes after weeks...
    In a bid to keep moderate Democratic Senators on board the push for his coronavirus relief package, President Joe Biden has signed off on a plan to tighten eligibility for direct stimulus payments, according to multiple reports. The direct payments would remain at the $1,400 level, the phase-outs thresnholds would remain the same, but caps would fall. As a result, more Americans would be cut off from payments. In the revised proposal, individual filers earning over $80,000 would not qualify for the payments. That’s down from the $100,000 cap in the House bill. Married couples would be cut off at $160,000, down from $200,000. The thresholds for reduced payments would remain at $75,000 for single filers and $150,000 for joint filers. A handful of more moderate Senate Democrats, include Sens. Joe Manchin (D-WV) and Jeanne Shaheen (D-NH), have pushed for the bill to more tightly target those most hurt by the pandemic. It is not yet clear how much the cost of the bill would be reduced by the changes. The House version reportedly would spend $1.9 trillion. With Republicans...
    Digital Vision | Photodisc | Getty Images If you tied the knot last year, it may be worthwhile checking what your new status will mean for your 2020 taxes. While many couples see their tax bill drop post-nuptials, some face a "marriage penalty" — that is, paying more in taxes than if they had remained unmarried and filed as single taxpayers. "In some cases, it can save you money and sometimes it costs you money," said certified financial planner and CPA Jeffrey Levine, chief planning officer at Buckingham Wealth Partners in Long Island, New York. "But it doesn't cost as much as the wedding."VIDEO4:3004:30Blending families and financesOn the MoneyBasically, the marriage penalty occurs when tax-bracket thresholds, and deductions or credits, are not double the amount allowed for single filers. So, newlyweds sometimes find that a bigger tax bill is an unfortunate side effect of marriage. For marriages that occurred at any point last year, you'll be required to file your 2020 tax return jointly as a married couple. (Filing separate tax returns as a married couple rarely makes financial sense.)...
    New York : If you usually do not file taxes, you will most likely have to do so this year if you want to receive the stimulus checks that have already been processed and the third party that could be approved under the President Joe Biden’s Administration. He Internal Revenue Service (IRS) is based on the tax information in your files and on data provided by other agencies of the federal government such as the Social Security Administration to process payments. If for some reason your information is not in the system, you could be left without receiving payments even if you are eligible. As part of the first round of payments of $ 1,200 under the CARES Act, the IRS enabled the online tool “Non-filers” for people who are not required to file taxes because of low income or because they are not generating income at this time, submit your personal data to request payment. However, for the second round of distribution that started in late December the above service is not available. This is why the IRS...
    Getty The details of the upcoming stimulus check were confirmed by Treasury Secretary Steve Mnuchin on July 23 during a press conference with reporters. The second round of stimulus checks will be for the same amount as the first round, he confirmed, which means that hundreds of millions of Americans will receive another check for $1,200 in the months to come — if this package is approved. Other details of the second round were established: the cutoff point for income eligibility will not be $40,000, as many speculated. Rather, it will be the same cutoff point as the first round of stimulus checks had: anyone with an income under $75,000 will receive $1,200, and this number will slowly phase out up to an income of $99,000. To reporters on Thursday, Mnuchin said, “We’re talking about the same provision as last time, so our proposal is the exact same proposal as last time.” Here’s what you need to know:The Second Round of Stimulus Checks Will Be Exactly the Same as the First Round, Mnuchin Says — Here’s What That...
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