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    Gov. Doug Ducey (R) announced Thursday that Arizona’s surging economy had paved the way for a historic flat income tax rate to come a year in advance. “It’s no secret Arizona’s economy is booming. Over the last eight years, we’ve made responsible decisions to live within our means, reduce burdensome government regulations, lower taxes every year and ensure our state remains a great place to live,” Ducey said in a letter to the Arizona Department of Revenue (ADR). “It’s time to deliver lasting tax relief to Arizona families and small businesses so they can keep more of their hard-earned money.” Beginning on January 1st, the flat income tax rate will be 2.5 percent, the lowest in the nation. This rate was scheduled to phase in over three years but was advanced due to Arizona’s economic strength. The flat tax plan was part of the 2021 state budget. According to the governor’s office, this new rate will reduce the income tax of the average taxpayer by 13 percent, saving families roughly $350 a year. Arizona needed a general fund revenue of...
    Shapecharge | E+ | Getty Images If you're a higher-income Medicare beneficiary, you may be paying less in extra premium charges in 2023 than you were this year. So-called income-related adjustment amounts, or IRMAAs, which are based on your tax return from two years earlier, kick in next year at $97,000 for single tax filers and $194,000 for joint filers (based on their 2020 return), up from $91,000 and $182,000, respectively. Additionally, with the standard Part B (outpatient care coverage) premium dropping by 3% next year to $164.90 from $170.10 in 2022, the IRMAAs also are less costly. The surcharges apply to both Part B and Part D (prescription drug coverage) premiums and affect about 7% of Medicare's 64.3 million beneficiaries. The higher your income, the higher the charge. (See charts below.) Whether you have to pay the surcharge is based on your modified adjusted gross income as defined by the Medicare program: your adjusted gross income plus tax-exempt interest income. "You only have to go $1 over that [lowest] breakpoint and you're subject to IRMAAs," said certified financial planner...
    OLDER and disabled Americans will be able to benefit from this year's rent and property tax rebate program. The state of Pennsylvania is offering a direct payment worth up to $650, but only a select group of residents are eligible. 1Older and disabled Pennsylvanians can earn hundreds through a rebateCredit: Getty But, this year, you can earn even more money if you meet certain conditions. How do I know if I qualify? In order to receive a rebate, you must be 65 or older or receive disability benefits.  You also must have paid rent or property taxes last year and meet a set of income requirements. The income requirements are as follows: $35,000 per household for homeowners and $15,000 per household for renters. Read more about rebatesTAKE TWO Direct payments worth up to $300 to be sent to Americans after delivery snagEXTRA CASH Millions of Americans will receive tax rebates from surprise $3billion pot Those who receive Social Security benefits will only count half of that towards the income cap. However, it’s possible you are eligible even if you don’t...
    Former President Donald Trump manages to pay a substantially low amount in taxes each year despite his ultra-wealthy status. Now, a new analysis is explaining how he manages to pay less in taxes than Americans with a household income of $20,000. According to a new report co-authored by The New York Times' Russ Buettner, Susanne Craig, and Mike McIntire, the former president's tax payments were highlighted. The writers revealed that he "paid $750 in federal income taxes the year he won the presidency. In his first year in the White House, he paid another $750." READ MORE: This Trump election lawyer and 'Big Lie' promoter owes the IRS more than $100,000 Internal Revenue Service (IRS) data indicates that the most common United States tax bracket, where workers earned an adjusted gross income (AGI) of $50,000 to $75,000, paid an average amount of $5,077 for the 2017 income tax year. This suggests that Trump has also managed to pay a substantially lower amount than most of the country's taxpayers. So, how does Trump manage to make the system...
    Prathanchorruangsak | Istock | Getty Images It's tough to fight inflation when you have no control over the rising costs of many goods and services. There's also not much you can do to stop interest rates from climbing or stocks from falling, either. Still, you may have more control than you realize when it comes to another financial pain point that can significantly impact your budget — your taxes.  "The time to do tax planning is before the year has come to a close," said Marianela Collado, CEO and co-owner of Tobias Financial Advisors in Plantation, Florida. "The fourth quarter is an ideal time, because it's going to be your last opportunity."  More from Personal Finance:What the latest IRS crypto tax records order means for investorsGrowing number of impoverished seniors can seek resources for helpPumpkin spice latte popularity comes down to 'very simple economics' Whether you usually get a refund or owe a tax bill, here are several moves to consider now to improve your chances of tax savings. Review tax withholdingFirst, you want to review how much money is...
    Jamie Grill | Getty Images As Americans grapple with soaring prices, experts say it's likely we'll see higher-than-usual inflation adjustments from the IRS for 2023 — covering tax brackets, 401(k) plan contribution limits and more. Built into the tax code, these yearly IRS changes aim to prevent so-called "bracket creep," when inflation bumps up income and pushes Americans into higher tax brackets, said Kyle Pomerleau, senior fellow and federal tax expert with the American Enterprise Institute. "That's not necessarily a good thing," he said, since Americans' higher income may not reflect an improved quality of life. More from Personal Finance:5 ways the interest rate hike from the Federal Reserve may affect youHere's why the $39 trillion U.S. retirement system gets a 'C+' gradeThe extended tax deadline is Oct. 17. What to know if you still haven't filedwatch nowVIDEO3:5703:575 tips to afford anything you want in lifeConsumer & Retail Digital Original VideoTypically, the IRS releases inflation adjustments for the following year in October or November, and Pomerleau predicts 7% increases across many provisions for 2023. "This year, we'll see a larger-than-average...
    Americans on average spent more of their income on taxes than they did on food, clothing and healthcare combined.  The Bureau of Labor Statistics latest report found that in 2021, Americans spent about $16,700 in taxes to the IRS while only forking over about $15,500 for food, clothing and healthcare.  The gap is down from 2020, where Americans spent $17,148 on taxes and $13,927 on the other expenses, and it's the smallest difference between the two costs since 2017.  On average in 2021, American consumer units spent $15,495 on food, clothing and healthcare combined, less that the $16,729 spent on taxes  The BLS recorded the spending costs on an average 'consumer unit,'  or a financially independent family or individual. In 2021, the agency reported 133,495 consumer units in the US. On average in 2021, American consumer units spent $8,289.28 on food, $1,754.39 on clothing, and $5,451.61 on healthcare.  Meanwhile, federal and state, social security, property and other taxes totaled $16,729.73, according to the BLS.  The disparity between the two expenses was less than half of 2020's, where it was about $3,200.  In...
    IDAHO residents got a little closer to $300 payments as the Senate passed legislation on spending the state’s $2billion surplus. The Idaho State Legislature held a special session this morning to discuss income-tax rebates and additional funding for public education. 1The proposed legislation will now head to the House for approval The 100-page proposal will now head to the House for consideration and should be decided sometime today. However, a co-sponsor list published August 30 revealed that 35 House members and 24 Senate members endorse the proposal. This means half of the 70-member House and a majority of the 35-member Senate are rooting for the legislation. Governor Brad Little announced his plan in late August on his website. Read More on PaymentsCASH BOOST Exact date Americans will receive new up to $1,500 direct payment by this monthEXTRA HELP How much SSI pay will I get in 2022 per month and per year? Mr Little said in the statement, "Idaho’s powerful economic engine, combined with years of fiscal conservatism in state government, mean tax revenues have outpaced government spending, month after month, year after...
    SACRAMENTO —  If Proposition 30 passes in November, we should hang a sign at the border reading: “Welcome to California, the state with the nation’s most outrageously high income tax.” Actually, we wouldn’t need to inform out-of-staters of that embarrassing fact. Word would spread fast across America after the election that we’ve embroidered our reputation as a far-left state drawn to tax hikes rather than setting spending priorities. Logic says that wouldn’t be a good pitch for enticing people with money to invest here. California already has by far the nation’s highest state income tax rate — 13.3%, compared with 11% in Hawaii, 10.75% in New Jersey and 9.9% in neighboring Oregon. But Oregon doesn’t have a state sales tax. We also rank the highest in sales taxes. Those states mentioned above are outliers. The highest rates elsewhere tend to be in the mid-single digits. More relevant, two economic competitors, Texas and Florida, impose no income tax at all. Neither do five other states, including neighbor Nevada. Proposition 30 would jack up our income tax another 1.75% to a previously unimaginable...
    (CNN)The Democrats' budget reconciliation package has gained more heft after West Virginia Sen. Joe Manchin agreed to add back several climate and tax provisions.Still, the effort remains a mere shadow of the sweeping $3.5 trillion reconciliation package that the majority party initially floated last year.After torpedoing the inclusion of any climate or tax provisions in mid-July, Manchin, a moderate Democrat, has reversed course. The measures join a handful of important but narrow provisions to lower prescription drug prices and to extend enhanced Affordable Care Act subsidies for three years.Gone are the creation of a universal pre-K program, an extension of the enhanced child tax credit, an expansion of Medicare benefits, the establishment of a federally funded paid family and sick leave program and many other provisions aimed at broadening the nation's social safety net.The deal currently under discussion is far smaller than the slimmed-down $1.75 trillion version the House passed in October. But Manchin, whose vote is crucial to pushing any legislation through the Senate via the reconciliation process, shot down the House bill in December.Read MoreSince then, Democratic leaders...
    KENTUCKY taxpayers now have until November 15 to file tax returns and make tax payments. This is the second tax extension this year as the first one is October 15. 1Some Kentucky taxpayers will get a second tax extensionCredit: Getty However, the second deadline is only for storm victims in specific parts of Kentucky, according to a statement from the International Revenue Service (IRS). This postpones tax filings and payment deadlines that occurred starting on July 26, 2022. According to the IRS, tax payments related to 2021 returns that were due on April 18, 2022, are not eligible for the extension. The new November 15, 2022 deadline also applies to quarterly estimated income tax payments due on September 15, 2022. Read More on TaxesMORE MONEY Thousands to receive one-time summer payment worth up to $1,658 next monthTAKING CREDIT How do I apply for child tax credit 2022? Plus, the quarterly payroll and excise tax returns normally due on August 1 and October 31, 2022. Businesses with an original or extended due date also have the additional time including:...
    THOUSANDS of families can now apply for new child tax credit payments. This fresh credit is part of Connecticut's 2022-2023 budget bill, which was signed into law by Governor Ned Lamont last month. 1Families can still receive child tax credits, if eligibleCredit: Getty - Contributor Those eligible for the credit are set to get a maximum rebate of $250, which is capped at three children for a total of $750. To get the maximum amount for each child, eligible recipients must meet the following income thresholds: Single or married filing separately must make $100,000 or less Head of household must make $160,000 or less Married filing jointly filers have to make $200,000 or less. Eligible families can apply on the Department of Revenue Service portal by clicking on “2022 CT Child Tax Rebate." Applications must be submitted by July 31.​ More on child tax creditNEW PAYMENT $750 rebate payment available for thousands of Americans - what to do to get itCHECK IT OUT $1000 CTC checks could be sent to families in this state – will you get cash? Vermont is...
    (CNN)The economic measures that Democrats are now trying to get through Congress are a mere shadow of the sweeping $3.5 trillion reconciliation package that the majority party initially floated last year.But the plan has been steadily shrinking, with West Virginia Sen. Joe Manchin, a moderate Democrat, delivering his latest blow this week. He dismissed including any climate or tax provisions in the bill. What's left is a handful of important but narrow provisions to lower prescription drug prices and to extend enhanced Affordable Care Act subsidies for another two years.Gone are the nearly $570 billion in tax credits and investments aimed at combating climate change, the creation of a universal pre-K program, an extension of the enhanced child tax credit, the establishment of a federally funded paid family and sick leave program and many other measures aimed at expanding the nation's social safety net.Also stripped out are tax hikes on corporations and wealthy Americans to pay for the package.Read MoreThe deal currently under discussion is far smaller than the slimmed-down $1.75 trillion version the House passed in October. But Manchin,...
    According the Georgia Department of Revenue, the state’s June net tax collections totaled $2.85 billion for an increase of $354.2 million, or 14.2 percent, compared to June 2021 period, when net tax collections totaled $2.50 billion as of June 30, 2021.  For the year-ended June 30, 2022, net tax collections totaled $33.09 billion for an overall increase of $6.19 billion, or 23 percent, compared to Fiscal Year 2021, during which final net tax revenues approached $26.90 billion. Individual Income Tax: Net Individual Income Tax collections in June totaled almost $1.48 billion, for an increase of $181.1 million, or 14 percent, compared to FY 2021 when net Individual Tax revenues approached $1.30 billi The following notable components within Individual Income Tax combine for the net increase: Individual Income Tax refunds issued (net of voided checks) fell by nearly $50 million, or -32 percent Individual Withholding payments increased by $66.4 million, or 6 percent, compared to FY 2021 Individual Income Tax Estimated payments were up $53.3 million, or 29.7 percent, over last...
    Courtneyk | E+ | Getty Images Over the past few years, there's been no shortage of ways to give to charity. And there's a special tax break for retirees who transfer funds from individual retirement accounts. Individual Americans donated an estimated $326.87 billion to charity in 2021, a 4.9% rise compared to the prior year, according to Giving USA. Regardless of the cause they're looking to support, philanthropic retirees may consider a strategy known as qualified charitable distributions, or QCDs, according to experts. More from Personal Finance:Fake charities can be tough to spot. Here's how to avoid getting dupedHere's how much cash you need for a recession, according to advisorsWashington leaders at odds over proposed tax increases to fix Social Security QCDs are direct gifts from an IRA to an eligible charity. If you're age 70½ or older, you may donate up to $100,000 per year, and it may count as a required minimum distribution once you turn 72.   While the maneuver doesn't provide a charitable deduction, you may see other significant tax benefits, financial experts say. "For most people,...
    AS Americans are halfway through another tax year, it's never too early to start understanding three major tax changes. This will affect how your federal tax return will take shape, especially if you're eligible for any credits worth up to $7,000. 1Tax changes will affect how you file your taxes in 2023 This year, Americans will need to make adjustments when it comes to how much they'll get in tax credits. Here are the three tax changes to note when filing next year. 1. Child tax credit Child tax credits (CTC) will return to a $2,000 lump sum for individuals making up to $200,000. Read more tax filing storiesTAXING TIMES Where’s my IRS refund - you’ll now earn extra interest but there’s a catchMONEY AT LAST IRS to finish processing tax returns filed in 2021 for Americans this week For couples filing jointly who make up to $400,000, the amount is $1,400.  The money will come at one time when 2022 taxes are filed next year. It's worth noting, the $2,000 child tax credit is due to expire after 2025....
    AMERICANS can still claim a $1,400 stimulus check this year. However, there is specific criteria to follow to receive the cash in 2022. 1Some Americans can still receive stimulus money this year The new payment will go out to people who were eligible for the third round of stimulus checks that went out in 2021, but haven't yet received them. The last lot of checks are due to eligible taxpayers who file their 2021 tax return this year. How to claim your cash Eligible Americans will be able to request a Recovery Rebate Credit at tax time to get their money they are owed from the Internal Revenue Service (IRS). Read more stimulus storiesCASHING IN Millions to get $500 stimulus checks by September – see if you’re eligibleCASH BOOST Will Social Security and SSI claimants get a fourth stimulus check? To be eligible for the full amount on the third round of checks, individuals need to have an adjusted gross income (AGI) of $75,000 or less and married couples filing jointly need to have an AGI of $150,000 or less. The deadline to file...
    In the three months since a state economic and revenue forecast revealed the largest surplus in Minnesota state history, tax collections have continued to come in higher than predicted. While it isn’t available for spending until it shows up in the next official state forecast in November, monthly tax collections are up $1.3 billion since that record $9.25 billion surplus in February. While national economic news is filled with climbing inflation and a sinking stock market, tax collections continue to exceed expectations. So why is state economist Laura Kalambokidis so worried?  Kalambokidis, Minnesota government’s top economist for the last decade, said she worries both about looming economic threats and her — and other economists’ — ability to predict what will happen. Article continues after advertisement Inflation itself is impacting tax collections from higher than projected incomes due to wage increases and higher sales tax revenue due to increased prices, she said. But how the Federal Reserve reacts with increases in interest rates — moves intended to slow the economy — will have their own impact on the economy and tax...
    The State of Georgia’s net tax collections for May totaled almost $2.70 billion, for an increase of $41.8 million, or 1.6 percent, compared to May 2021, when net tax collections approached $2.66 billion. Year-to-date, net tax collections totaled nearly $30.24 billion, for an increase of $5.84 billion, or 23.9 percent, compared to fiscal year 2021, when net tax revenues totaled almost $24.40 billion as of the end of May. Year-over-year comparisons of net tax collections for April and May are made difficult by the deferral of the previous year’s state tax filing deadlines for both quarterly and annual income taxes to May 17 rather than the traditional mid-April filing deadline set for most years. While annual revenue totals are comparable as of May 31, net revenue totals in the current month’s year-over-year comparison are not aligned as a result of the FY 2021 filing deadline shift into May. The changes within the following tax categories help further explain May’s overall net tax revenue increase: Individual Income Tax: Individual Income Tax collections increased...
    According to recent data from the center-right Tax Foundation, Connecticut taxpayers continue to shoulder nearly the highest revenue burdens of anyone in the U.S. As stated in a report titled “State and Local Tax Burdens, Calendar Year 2022,” the average state resident paid 15.5 percent in combined state and local taxes last year. That places Connecticut second among all states in that category, second only to New York, which claims 15.9 percent of residents’ annual earnings on average. Neighboring Massachusetts and Rhode Island both have tax onuses under 12 percent, hovering around the national mean. Free-marketers say the Constitution State’s tax policy hampers economic flourishing. “Connecticut has struggled to recover from every recession since the early 1990s when the state first imposed its personal income tax,” Ken Girardin, director of policy and research at the Hartford-based Yankee Institute (YI), told The Connecticut Star. “And, as the Tax Foundation noted, no state has increased its state and local tax burden more than Connecticut since Tax Foundation records began.” A policy brief written this week by Girardin’s YI colleague Meghan Portfolio underscores...
    With Republican-controlled states in a highly competitive race to the bottom in looking for ways to take away rights, strip supports from struggling families, and gut public education, wouldn’t it be nice if states controlled by Democrats would bring a fraction of that urgency to improving government and helping people? In Massachusetts, voters will have a chance this November to fund the state’s schools, roads and bridges, and public transit through a tax on income over $1 million a year. If it passes, the Fair Share Amendment will generate up to $2 billion a year for those investments in the public good through a tax on the state’s top 1% of earners. The 4% additional tax would only apply to income over $1 million a year, so someone with $1,000,001 in income would just pay an extra four cents. Kurt Wise of the Massachusetts Budget and Policy Center has noted that the Fair Share Amendment would advance racial justice since the top 1% of households are disproportionately white—86% compared with 73% of the state’s households overall. While the new tax would affect 0.8% of white households, it would...
    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 —...
    (CNN)Low-income parents now have another chance to get the enhanced 2021 child tax credit without filing full tax returns.The Biden administration is relaunching its efforts to reach families whose incomes are so low they don't have to file taxes and direct them to an online portal where they can submit information needed to claim the credit. Eligible households can receive up to $3,600 for each child under age 6 and up to $3,000 for each one ages 6 through 17.The portal, created by the non-profit Code for America in collaboration with the White House and the Treasury Department, reopens Wednesday. The free tool, available at ChildTaxCredit.gov or GetCTC.org, is accessible on desktops and mobile devices and is in English and Spanish. The online tool launched last fall but was not available during the tax filing season, to encourage people to file full returns, which would allow them to claim other tax credits.More than 115,000 families used the portal to claim around $440 million in tax benefits last fall. About 25,000 households claimed the child tax credit and the rest filed...
    Walker took in $4 million — more than 64 times Georgia's median household income — a year ago. Georgia Republican Senate candidate Herschel Walker said last week that he opposes raising taxes on the richest Americans because doing so is "not right." Walker claims to have a net worth of at least $29 million. In an interview last Wednesday on WDUN, Walker was asked about the "Fair Tax," a controversial proposal to switch from income taxes to consumption taxes and make Americans earning between $15,000 and $200,000 pay a larger share of the overall tax burden. It was unclear from his response if Walker knew what that idea even was, but he said he supported making taxation "fair." "All I ever hear from the left is, 'Let's tax the wealthy, let's tax the wealthy.' Well, you can't just say, 'Let's tax the wealthy.' That's not — that's not right. You gotta have a tax system that's gonna be fair for everyone," Walker said, arguing that America needs "leaders that's gonna make a decision, rather than just trying to push it...
    MINNEAPOLIS (WCCO) — Minnesota is one of just 12 states that taxes social security benefits. Republicans have long led the charge to repeal that tax. READ MORE: Walz's State Of The State To Address Budget Surplus, Frontline Worker PayMinnesota Republicans are arguing that if ever there was a year to eliminate taxes on social security income, this is it. Minnesota, after all, has a $9.25 billion budget surplus. But the push to at least partially roll back that tax is even getting some support from Democrats. In their tax bill, House Democrats are proposing eliminating taxes on social security income for those earning less than $75,000 a year. While Democrats have traditionally argued that the social security tax only hits high income individuals, a Minnesota House Research study indicates that’s not true. The study found that 62% of Minnesotans filing taxes do pay taxes on social security income. The study also found that couples earning $58,000 or more were paying taxes on their benefits. READ MORE: Gov. Tim Walz To Deliver 1st State Of State At Capitol Since 2019Senate Majority...
    Members of the Tennessee General Assembly overwhelmingly passed a bill Thursday acknowledging that the growth in state government this year exceeds the growth of Tennessean’s income by $3 billion, or 16 percent. The action by the legislature is mandated by the Tennessee Constitution in Article II, Section 24, when state spending grows faster than its economy. The measure, commonly known as the Copeland Cap, was named for its House sponsor of the constitutional amendment, the late Republican State Representative David Copeland of Ooltewah, who passed away in 2019. In 1978, the voters of Tennessee approved Copeland’s amendment to the Tennessee Constitution to limit the growth in state spending. The constitutional provision states, “In no year shall the rate of growth of appropriations from state tax revenues exceed the estimated rate of growth of the state’s economy.” The estimated growth of the state’s economy is based on the projected change in the personal income of Tennesseans. The estimated growth in Tennesseans’ personal income is sourced from the University of Tennessee Boyd Center for Business and Economic Research, and is included in...
    IF you were hit by an unexpected tax bill this filing season, experts recommend adjusting your withholdings now to avoid it next year. The International Revenue Service (IRS) will get their money one way or another. 2Taxpayers can avoid surprises during tax time by checking their withholding amount Typically, employers will withhold income tax from their employee’s paycheck and then pay the IRS on their behalf. Wages paid, along with any amounts withheld, are reflected on the Form W-2 that each employee receives at the end of each year. According to the IRS, the amount withheld depends on two things: the amount of income earned and three important details found on a W–4. Filing status: single rate or the lower married rate Number of withholding allowances claimed: each allowance claimed reduces the amount withheld Additional withholding: employees can request an additional amount to be withheld from each paycheck Read More on TaxesTAKING CREDIT Americans can claim EITC checks worth up to $6,728 in 28 states this yearCASHING IN When you’ll get your IRS tax refund in...
    THE federal earned income tax credit supports millions of low-income Americans - but plenty of states have their own too. How much you can get depends on income and whether you have any children, with the state credit typically a percentage of the federal one. 1The majority of states offer state earned income tax creditsCredit: Getty The earned income tax credit (EITC) is said to be the federal government's largest refundable tax credit and has been available since 1975. During the 2020 tax year, almost 25million eligible workers and families received more than $60billion in federal EITC. The maximum federal credit for workers without children was previously worth $538, but it's almost tripled to $1,502 for the 2021 tax year. The expansion also made it available to younger and older workers without dependent children for the first time. Read more in taxNO FEE Four groups of taxpayers get extra time to file returns without penaltyTAX BACK Where's my IRS refund? What you need to know as 103million tax returns processed It means workers aged 19 through 24 and 65 and...
    (CNN)There's still time to claim the enhanced child tax credit as well as other federal tax breaks, which could be worth hundreds -- if not thousands -- of dollars. But you have to submit your 2021 tax return first.This year, the filing deadline is Monday, April 18.Most eligible families received half of the beefed-up credit in monthly installments last year.But other folks, particularly some very low-income Americans who aren't required to file taxes, have yet to see any of the funds.Parents can claim the remaining amount on their 2021 return. They'll need Letter 6419 that the Internal Revenue Service mailed earlier this year. It states how much families received in monthly child tax credit payments from July through December and notes the number of kids the agency used to calculate the credit.Read MoreMore than 36 million families with more than 61 million children received monthly payments, which totaled more than $92 billion, according to the IRS.However, because the monthly payments were based on a family's income from a prior year, the amount of remaining credit they'll receive may have to...
    WASHINGTON (AP) — President Joe Biden and his wife, Jill, earned $610,702 during their first year in the White House and paid $150,439 in federal income taxes. That was a tax rate of 24.6% for 2021, well over the average of around 14% for all Americans. The totals were similar to the Bidens’ 2020 returns, when they reported earning $607,336 as he ran for president. They reported a federal income tax rate of 25.9% then. The national median household income was $67,521 in 2020, according to U.S. Census data. It’s the second straight year Biden has released his tax returns from the White House, reestablishing a tradition that presidents make their filings public after President Donald Trump declined to do so. Both this year and last were steep drops from 2019 for the Bidens, when they earned nearly $1 million, primarily from book sales, speeches and their teaching positions at the University of Pennsylvania and Northern Virginia Community College. Jill Biden still teaches in Virginia while serving as first lady. The returns show Biden earning $378,333 as president...
    By Justin Andrews, KPIX SAN FRANCISCO (CBS SF/CNN) — If you haven’t filed your taxes just yet, a recent study shows you’re likely not alone. READ MORE: Bomb Threat At Novato High; Students Sheltering In PlaceTax Day is Monday April 18th and a large number of people across California have waited until the last minute to file. Just how many? According to a IPX 1031 study, the California ranks fifth on the list of states with the biggest tax procrastinators. San Francisco and San Jose made the list among some of the top procrastination cities. “I figure as Californians we always kinda delay doing things because we have a lot on our plate, we’re busy people,” said Daniel Delmore. Delmore admits he typically waits until the very last minute to file his taxes. “It sucks, you gotta sit there and review and recap all of last year, I have to go through my checking statements, credit card statements, tally all my write-offs,” Delmore says. “It just takes way too much time.” Financial expert Shibani...
    SACRAMENTO —  More than a month after Gov. Gavin Newsom pledged to give Californians money to offset rising gas prices, he and state lawmakers have yet to find common ground on the most basic details of the plan: Who should be eligible for refunds and how much should they receive? The governor and legislators also disagree on big-picture questions of how much of California’s record tax revenues should be sent back to residents and where refunds should fall in the hierarchy of other needs in the state. “It’s definitely not a lack of attention and work,” said Senate President Pro Tem Toni Atkins (D-San Diego) about the slow-going negotiations. “It is more really trying to land on the spot that we feel is appropriate. On our side, there’s just not a lot of interest in providing checks to the wealthiest of Californians.” Gas prices in the state are beginning to drop from highs this year, but the $5.73 average price of a gallon of regular unleaded fuel remains $1.79 higher than what Californians paid at the pump one...
    by Rick Manning   Imagine a world where you were not taxed on how much you earned in a given year, but instead on how much your wealth appreciated. To some this sounds like something straight out of John Lennon’s communist manifesto, also known as the song “Imagine.” Like the song, the music surrounding the words are enticing, but also like Lennon’s hit, the words themselves spell the death knell of freedom. President Joe Biden’s proposed wealth tax starts innocuously enough with the promise to only impact those who have $100 million or more of assets.  The idea is simple enough, if you have over a set amount of assets and you have unrealized gains to those assets, you pay twenty percent of those gains to the federal government. An unrealized gain is an increase in the value of your portfolio due to appreciation, which has not been cashed in.  For example, if you have a stock which you did not sell which was worth $100 at the beginning of the year that goes up to $200 at the...
    MORE than 2million California renters may see a huge boost on their taxes next year under a new proposal. A bill in the state senate would dramatically increase California's tax credit for low-income renters, and make it refundable. 1California Senate Bill 843 would greatly increase the state's tax credit for renters Currently, renters with an annual income below $43,533 qualify for a $60 credit. Married renters filing jointly and earning less than $87,066 qualify for $120. Under Senate Bill 843, that credit would jump to $500 for individuals and $1,000 for married couples and individuals with dependents. And since the new proposal makes the credit refundable, renters could take home much more in their tax refunds next year. READ MORE ON TAX CREDITSTAX RELIEF Property tax credits for homeowners and renters - can you claim up to $10,000?GOOD SURPRISE Surprise new $4,000 Child and Dependent Care Credit checks are refundable California is the most expensive state for renters, with an average rent of $1,901, according to a study by Earnest Loans. The tax credit boost...
    Prathanchorruangsak | Istock | Getty Images With one week left to file your federal taxes, it's easy to overlook another sneaky deadline: the due date for first-quarter estimated tax payments. If you have income from self-employment, a small business, gig economy work, investments and more, you must make a payment by April 18. You need to pay if you expect to owe $1,000 or more in taxes for 2022, according to the IRS. But estimated payments may reduce or eliminate penalties.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 "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." The fastest way to make a quarterly estimated tax payment is through IRS DirectPay or sending money through your IRS online account. However, there are...
    BOSTON (CBS) — Issues like taxation and economic growth are going to be front and center throughout election year in Massachusetts. Eileen McAnneny, president of the non-partisan Massachusetts Taxpayers Foundation, joined Jon Keller to discuss Gov. Charlie Baker’s tax proposals. The package of tax cuts and changes includes cutting the capital gains tax rate, doubling the estate tax threshold, and increasing tax breaks for seniors, renters, and lower-income filers. READ MORE: Bill Would Help Those Entering Massachusetts Cannabis MarketMTF endorsed the move, but Keller asks, will the legislator pass it? “It is an election year. I think people like tax relief. Secondly, I think that the proposal is balanced. It provides a lot of help to folks at the lower-income spectrum, who have been most impacted by the pandemic,” said McAnneny. She said the package also provides “relief on the short-term capital gains rate because they’ll help position Massachusetts for growth in the future which is critically important.” “Massachusetts’ economy is based on entrepreneurship and investment and innovation so we don’t want to make our tax burden so high that...
    The “Gasoline Misery Index” from the Metro Business Daily Network details the direct impact record-high gas prices have had on consumers across the United States. Since President Joe Biden took office, prices of gas and other goods and services have continued to increase, as many peaked after Russia’s invasion of Ukraine. According to the project, residents throughout the country “will spend $667 more on gasoline this year than they did last year.” However, some states have been hit harder than others. In Arizona, individuals will pay an average of $784 more for gas. Drivers in Georgia and Tennessee will see a similar increase. They will rake out $778 and $732 more, respectively. Many experts have pointed to the regressive nature of the price increase, meaning individuals with lower incomes are impacted at a higher level than wealthier groups. “Every dollar increase, holding the number of miles driven constant, would cost these moderate- and lower-income households an extra $530 per year. For a family with an annual income of $20,000, this is an additional 2.7% of their total income. Although higher...
    WITH less than two weeks until tax day, states are still adding tax credits for this year. For thousands of families, a $600 child tax credit was pushed forward on April 5. 1The Connecticut state budget surplus is projected at $1.5billionCredit: Alamy The credit would impact residents of Connecticut, where two major tax changes are on the table. The first is the child tax credit. The second is an increase to the state earned income tax credit. Both would apply to the 2021 tax season. Read More in TaxGAS RELIEF Low-income Americans could get $240 payments every three months under proposalTAX BACK New $1,000 payments ditched but thousands could still get $325 child tax credits The final deal needs full approval from state lawmakers, which is expected by May 4. The plan comes as states around the nation are seeing huge budget surpluses, but also want to help families as they are crunched by inflation. How much is the child tax credit? If passed, it would provide a maximum of $600 per year for up to three children. The...
    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...
    President Joe Biden speaks alongside Director of the Office of Management and Budget Shalanda Young as he introduces his budget request for fiscal year 2023. President Joe Biden released a $5.8 trillion budget for the fiscal year 2023 on Monday, the first step toward establishing the funding for next year, which starts Oct. 1. That would normally have happened with the State of the Union address, which happens in late January or early February. Nothing is normal anymore, including the fact that Congress didn’t actually finalize this year’s government funding until a few weeks ago, more than five months into the fiscal year. Given the chance that Republicans could retake Congress in November, the funding President Biden is seeking in this budget won’t be approved by Oct. 1, either. “Budgets are statements of values, and the budget I am releasing today sends a clear message that we value fiscal responsibility, safety and security at home and around the world, and the investments needed to continue our equitable growth and build a better America,” Biden said in a statement Monday, indicating that this was a budget written...
    (CNN)Looking for ways to fund its spending plans, the White House is turning to a familiar target: billionaires and other super-wealthy Americans.As part of its budget proposal for fiscal year 2023, the Biden administration is pushing a measure that seeks to ensure that those worth more than $100 million pay a federal income tax rate of at least 20% on their income, including unrealized gains on assets -- which are not currently taxed.Under the present tax code, growth in the value of assets is taxed only at the time of sale -- and at lower rates than the highest income tax rates for investments held for at least a year. The rich often borrow against their holdings to build more wealth and fund their lifestyles, while avoiding adding to their annual income tax tab. And many have seen their portfolios swell in recent years as the stock market has boomed."Under current law, when an American worker earns a dollar of wages, that dollar is taxed as they earn it," according to a White House fact sheet released Saturday, which notes...
    JACKSON, Miss. (AP) — Mississippi, one of the poorest states in the nation with perpetually underfunded schools and struggling rural hospitals, had its largest-ever tax cut passed by lawmakers Sunday. The Republican-controlled state House and Senate voted by wide margins to pass a bill that would reduce the state income tax over four years, beginning in 2023. The bill goes to Republican Gov. Tate Reeves. He has indicated he will sign it into law. “This affects every Mississippian that gets up and goes to work,” Senate Finance Committee Chairman Josh Harkins, a Republican from Brandon, said Sunday. Supporters say a significant tax cut could spur economic growth and attract new residents to Mississippi, which was one of three states that lost population during the decade before the 2020 Census. Opponents say reducing the income tax would mean less money for schools, health care, roads and other services, especially hurting Mississippi’s poor and working-class residents. Sen. David Jordan, a Democrat from Greenwood, said he is concerned legislators won’t be able to pay for expected government services if the state cuts taxes....
    (CNN)Facing families who are angry about the financial bite that high gasoline and grocery prices are taking out of their budgets, many governors are dipping into flush state coffers to offer relief in the form of rebates, gas tax suspensions and income tax refunds and cuts as they try to avoid voter backlash at the polls in November. Just this past week, California Gov. Gavin Newsom, a potential future Democratic White House contender who is gliding toward reelection in November after fending off last year's recall, rolled out a $9 billion proposal to hand out $400 debit cards to California drivers to help soften the impact of the nation's highest gas prices. And in Georgia, Republican Gov. Brian Kemp -- who is facing one of the toughest reelection races in the country -- signed a bill Thursday that will give between $250 and $500 in tax refunds to Georgians -- a move several of his rivals immediately blasted as election-year politicking. As she faces a bruising reelection campaign in Maine, Democratic Gov. Janet Mills has proposed some of the most...
    VIDEO2:4502:45More than half of Americans paid no income tax in 2021Squawk Box More than half of American households paid no federal income tax last year due to Covid-relief funds, tax credits and stimulus, according to a new report. The nonpartisan Tax Policy Center estimates that 57% of U.S. households paid no federal income taxes for 2021, up substantially from the 44% before the pandemic. Howard Gleckman, senior fellow at the Tax Policy Center, said Covid-related job losses, a decline in incomes, stimulus checks and tax credits were largely responsible for the increase. The expanded Child Tax Credit was a large factor. It substantially reduced "the income tax liability of more than a hundred million households and temporarily turned many from payers of small amounts of federal income tax to non-payers," Gleckman wrote. With many of the tax programs ending, Gleckman forecasts the number of non-payers will decline to 42% in 2022 and 38% by 2029. "We predict it will go back down and remain fairly low relative to historical standards," Gleckman said.Not just income taxesFederal income taxes are just...
    (CNN)Georgia Gov. Brian Kemp on Wednesday signed a bill that will make hundreds of dollars available to some Georgians in the coming weeks.Passed by the Republican-controlled legislature earlier this month, the legislation uses more than $1 billion of surplus government funds to provide income tax refunds for state residents who filed returns in 2020 and 2021."When the government takes in more than it needs, I believe those dollars should be returned to the taxpayer," Kemp, a Republican, who is up for reelection this year, said in a statement.Georgia's surplus came after Covid-19 federal relief was distributed to states across the country. Passed last year, the nearly $2 trillion American Rescue Plan received no Republican support. Kemp's move mirrors efforts in states across the country to provide relief to their residents in the face of inflation. In California, for example, Democratic Gov. Gavin Newsom has proposed using billions in surplus state funds to dole out $400 debit cards and free public transit for 3 months to help Californians offset the high cost of gas.Read MoreTrump-backed Perdue struggles in Republican primary challenge...
    ONE in three Americans work a side gig and even more workers would like to start one. Taking a second job is a great way to help your wallet, especially if extra hours aren't offered through your regular full-time work. 1The deadline to file your 2021 tax return is April 18, 2022Credit: Getty Unfortunately, it can also make putting together your tax documents more difficult. As the deadline to file your taxes gets closer, we lay out several key points to keep in mind regarding your side gig. 1. All income must be reported Failing to report income could have serious consequences, including what the IRS calls a failure-to-file penalty. Read More in MoneyGAS RELIEF Low-income Americans could get $240 payments every three months under proposalTAKE NOTE Expert reveals three money mistakes that young adults make that cost $1,000s While you should receive a Form 1099 for income that you have to report, it's always better to double-check and verify. The best way to be confident is to review your bank statements against your 1099's. Usually,...
    Anchiy | E+ | Getty Images There's been a wave of state-level tax cuts spurred by budget surpluses, and more breaks may be coming, according to policy experts. "States have a lot of revenue on hand and they are looking to return it to taxpayers," said Katherine Loughead, senior policy analyst at the Tax Foundation. In 2021, 29 states and the District of Columbia enacted "significant" cuts, according to the Tax Policy Center, typically through reduced individual rates or expanded earned income tax credits, a write-off for low- to moderate-income families. More from Personal Finance:Retirees likely shielded from inflation hit on these expensesNew Jersey Gov. Murphy floats property tax relief These 3 last-minute moves can still slash your 2021 tax bill And this year, at least a dozen states have made cuts or are eyeing reductions, including both temporary and permanent measures, according to the Tax Foundation.   While there have been some pushes for corporate or property tax relief, income taxes are "the heart of what's going on," said Richard Auxier, senior policy associate at the Urban-Brookings Tax Policy Center....
    Blue-state Democrats have been fighting since 2017 to repeal a key provision of President Trump’s tax plan that penalized high-cost California filers. The so-called SALT tax cap imposed a $10,000 limit on IRS deductions for state and local taxes like income and capital gains levies and property taxes. The measure primarily affected residents of high-cost, Democratic-leaning states like California, New York and New Jersey, which have some of the highest taxes and highest property values in the nation. Now, Southern California Rep. Katie Porter is trying to roll back that provision, co-sponsoring the latest attempt to revive the state tax deduction. Her bill eliminates the cap for taxpayers earning less than $400,000 a year while phasing it out for those making more than that. “All deductions, including the one for state and local taxes, are based on the fact that people should not be taxed on money that they don’t have to spend,” Porter said in a phone interview. “This is sort of a common-sense policy that we’ve had in our tax code since 1913,” she said. “ … They have...
    IRS audits are targeting a specific group of Americans based on their salary, according to a new report. The examination of IRS data found the agency audited some of the poorest families at five times the rate of everyone else in 2021. 1A new report claims the IRS audits the poorest families at five times the rate of everyone else The report by Transactional Records Access Clearinghouse (TRAC) at Syracuse University concluded that many of the IRS audits specifically targeted low-income families who made less than $25,000 per year. Of the 160million individual income tax returns filed last year, 659,003, or four of every 1,000, were examined, according to the TRAC report.   The lowest income wage earners filed more than 23,620,000 returns, of which 306,944 were audited. That amounted to 13 in every 1,000 returns, according to the report. Researchers claim that the IRS accomplished the audits by increasing its already high reliance on correspondence audits, which involve a letter from the agency requesting documentation on a specific line item on the filed return. More than half of the...