Credits Feed

U.S. families have been getting smaller in recent years, but some still have lots of children and they could end up being adversely affected by the tax law changes now under consideration. (Photo from the Forks Timber Museum Collection via Flickr) In selling their tax cuts to the American public, Republicans emphasize that the standard deduction amount is almost doubled. That sounds good. But that's not the whole story. You'll lose personal exemptions. For taxpayers, exemptions are excellent. That's especially the case for filers who have lots of dependents. Under current law, a tax exemption helps reduce your income so... Read more →


After 14½ hours of debate, the U.S. Senate early on Saturday, Dec. 2, approved 51-49 its version of tax reform. Now the hard work starts. (C-SPAN2 screenshot; click image to watch video of the full debate and votes) It's alive! Tax reform, or at least tax cuts (for a while, for some people) survived a marathon session in the Senate, with that chamber approving its Internal Revenue Code revisions early Saturday, Dec. 2, morning. Now the real fun begins. Since the House version (H.R. 1, the Tax Cuts and Jobs Act) passed on Nov. 16 is different from the Senate's... Read more →


Across America, special thanks go out this Veterans Day to all the men and women who courageously put on uniforms and served our country whenever and wherever called. But once those proudly-worn uniforms are packed away, former U.S. military members need more than just gratitude. Millions of soldiers, sailors, pilots and National Guard members need our support and help as they return to civilian life. That's why this 11/11 Shout Out Saturday goes to MartketWatch's financial checklist for former military members. And since you come here for tax talk, I don't want to disappoint. Here are a couple of tax... Read more →


The tax dueling has officially begun. The Senate on Thursday, Nov. 9, released its answer to the House's H.R. 1, officially title the Tax Cuts and Jobs Act. UPDATE, Thursday, Nov. 16, 2017: The House passed H.R. 1. Prospects for the Senate's tax reform bill, however, are muddier. While resolving difference in the two doesn't demand quite as many steps as in the 10 Duel Commandments outlined in the still incredibly popular Broadway (and touring company) musical Hamilton, it's still going to be one of the biggest face-offs in recent Washington, D.C., legislative history. Here's a look at some of... Read more →


House Speaker Paul Ryan (R-Wisconsin) get serious in discussing what Republicans say are the middle-class benefits in their latest proposal to rewrite the tax code. The most detailed plan yet was released Thursday, Nov. 2. (Screenshot of C-SPAN video; click image to watch clip.) Remember that Capitol Hill adage that all politics is local? It can be easily shifted to tax reform. Whether you're for or against a tax law change will depend in large part on how much it helps or hurt you. When it comes to the men and women who propose and/or make those changes, their votes... Read more →


Welcome to Part 4 of the ol' blog's series on 2018 inflation adjustments. Today we look at changes to some popular credits and deductions. You can find links to all 2018 inflation posts in the first item: Income Tax Brackets and Rates. Note: The 2018 figures apply to 2018 returns that are due in 2019. For comparison purposes, you'll also find 2017 amounts to be used in filing 2017 returns due next April. Millions of taxpayers depend each year on tax deductions and tax credits to cut their annual tax bills. The main tax reduction strategy is claiming the standard... Read more →


Amazon's headquarters (center high rise) dominates downtown Seattle. Now the online retail giant is looking to build a second HQ in another North American city. (Photo courtesy Amazon) In June, Amazon acquired what many Austin residents felt was a part of the city's core, the organic grocer Whole Foods. Now Texas' capital city is looking to get something back from Amazon — the online retailer's second headquarters. But becoming home to that new facility also raises a big question: At what tax cost? Second HQ as big as the first: Amazon announced Sept. 7 that it's looking for a city... Read more →


Colorfully coiffed "Girls Trip" friends Jada Pinkett Smith, Tiffany Haddish, Regina Hall and Queen Latifah partying in New Orleans. I've been a film fanatic from an early age. It started when I was a back-seat viewer on the family's regular summer night trips to the drive-in. Movies were a much needed break from real life in terrible times, like when Mom took my little brother and me to see "20,000 Leagues Under the Sea" to get us away from the news of JFK's assassination. And the annual airing of "The Wizard of Oz" was must-see TV in our house, especially... Read more →


The continental United States will be a little dimmer today as the solar eclipse moves across the lower 48. Some folks, however, focus on the sun every day. They have solar energy systems. If you’re interest in joining their sun worshiping ranks, the tax code can help. The federal solar tax credit, officially known as the solar investment tax credit (ITC), allows you to claim on your federal taxes 30 percent of the cost of a solar energy system. Good, it’s a tax credit. This means you get a dollar-for-dollar reduction of any tax you owe. Even better, installation costs... Read more →


August's Dog Days of Summer are a great time to make some hot tax moves — from energy-related tax breaks to tax holidays to tax help for education costs — that could produce cool tax savings. Hello August. I’m not going to say welcome because, well, you’re typically not a good guest. August is one of the worst weather months of the year, at least when it comes to basic comfort. It’s hot. In many places it’s humid. And the thrill of summer’s arrival back in late May has worn thin. That’s why so many people take time in August... Read more →


Wisconsin workers soon could be working at new Foxconn plant if state lawmakers approve huge tax benefits for the Taiwanese electronics company. Are you worried that your next iPhone will cost more than you planned now that Foxconn is opening a plant in Wisconsin? The Taiwanese electronics supplier will be paying U.S. employees much more — an average of almost $54,000 a year plus benefits annually — than workers who put together Apple products in China. Don't be. Foxconn's American operation won't be making smartphone components. Instead, it will produce liquid-crystal display panels for televisions and computer screens. But Wisconsin... Read more →


Tom Hiddleston as Loki, left, and Chris Hemsworth as Thor prepare to take down some bad guys in "Thor: Ragnarok." That movie, coming to a theater near you in November, was one of the many Marvel Studios productions that got the lion's share of attention at Comic-Con 2017. (Click image for full Marvel Studios trailer at YouTube) Comic-Con, the geek event of the year, just wrapped up in San Diego. Not surprisingly, Marvel Studios and its stars were the big draws at the 2017 event. I'm not a big fan of comic books and their spin-off products, but I did... Read more →


If you've been paying attention to Donald Trump Jr.'s meeting with some Russians last summer, you know the White House has given two reasons for the get-together. The explanation that caught my tax eye was that the group talked about adoptions. The president's oldest son said that one of the Russian nationals came to Trump Tower to lobby for reversal of the Magnitsky Act. The law gets its name from attorney Sergei Magnitsky, who died in 2009 while being held in a Moscow prison. Foreign fight, domestic family effects: In 2012, the U.S. law bearing Magnitsky's name was enacted. It... Read more →


Happy World Emoji Day! It's held on July 17 each year as a way to promote the use of emojis — like we need to do that! — and, according to Emojipedia (really!), spread the enjoyment that the colorful icons bring. The enjoyment goal got me thinking of how emojis might make one of our worst tax tasks more pleasant. I'm talking, of course, about our annual filing of returns. Most of us already use tax software. Surely it wouldn't be that difficult to incorporate the option of adding emojis to the lines we fill electronically complete. Dressing up your... Read more →


Shawn Campbell via Flickr Creative Commons As the health care battle on Capitol Hill continues, there's one thing upon which both side can agree. The Affordable Care Act is not perfect. No piece of legislation is. Just ask Republicans trying to craft a replacement for Obamacare, as the seven-year-old health care law is known. And just ask a California couple who now owe the Internal Revenue Service almost $13,000 because of miscalculated Obamacare advance premium payments. Premium tax credit help: The Walkers, a married California couple, got health care coverage in 2014 though one of the Golden State's insurance marketplaces.... Read more →


June is here! Summer. Beaches. Holidays. Weddings. Tax breaks. That's not a non sequitur or the fevered delusions of tax geek. As schools close their doors for a few months and families head out on much-needed vacations, it really is the perfect month to look at some traditional June events and their related tax moves. 1. Batten down the hatches: OK, that's a nautical phrase, but when summer rolls around, landlubbers along the Atlantic and Gulf of Mexico coasts take it to heart. They don't need a calendar to tell them that the annual hurricane season starts June 1. They... Read more →


Most Obamacare attention this week has been on the been on the revised Congressional Budget Office estimates that show the GOP bill to repeal and replace the Affordable Care Act would cause fewer people (only 23 million vs. 24 million) to lose coverage, but at a higher cost ($31 billion more than the March version of the bill) to Uncle Sam's bottom line. But at the same time, nuts and bolts work on the American Health Care Act, or AHCA as the Republican bill is known, also continued at the Congressional committee level. House Speaker Paul Ryan (R-Wisconsin) in March... Read more →


The first Armed Forces Day was celebrated on this day 67 years ago. President Harry S. Truman led the effort to establish a single holiday to thank U.S. military members for their service in support of our country. On Aug. 31, 1949, Truman's Secretary of Defense Louis Johnson announced the creation of Armed Forces Day to replace the separate Army, Navy, Marine Corps and Air Force Days. It was a logical move given the unification under Truman's administration of the Armed Forces under the Department of Defense. President John F. Kennedy established Armed Forces Day as an official holiday in... Read more →


In his new book, "The Vanishing American Adult: Our Coming-of-Age Crisis — and How to Rebuild a Culture of Self-Reliance," Nebraska Sen. Ben Sasse says young people in the U.S. are failing to launch. He explained to Elaine Quijano on "Red & Blue" how we ended up here and what Americans can do to prepare for adulthood. (Click image to view CBSN video) Sen. Ben Sasse swears that his book is not just 320 pages of old man "get off my lawn" rants at neighbor kids. First of all, the 45-year-old Sasse is far from old. Plus, says the Nebraska... Read more →


May flowers, like these Texas poppies, are one of the reasons it's such a merry month. Other reasons to be happy is that there are some tax moves you can make now to cut your 2017 IRS bill. (Photo by Kay Bell) Welcome to the merry, merry month of May, which is particularly joyous for folks who've finished up their 2016 tax returns. That's almost 136 million of us, with around 17 million of those 1040 forms arriving at Internal Revenue Service processing centers in the final days of this year's main filing season. While the 2017 filing season got... Read more →