Inflation Feed

Health insurance policies with lower premiums are always popular, whether the medical coverage is offered via a workplace plan or bought separately by individuals. Those who opt for such coverage are willing to take smaller out of pocket premiums each month in exchange for larger deductibles for their overall coverage. Part of that choice is based on the opportunity to set up a companion savings account to cover those higher deductibles. These aptly and obviously named high deductible health plans, or HDHPs, work well for folks who don't have chronic medical issues, but want to make sure they have coverage... Read more →


The American Rescue Plan Act (ARPA) that became law in March gets most attention for creating a third round of COVID-19 economic impact payments. But it also made changes to some tax laws to help put more money into families' hands. One of those changes was bulking up the Earned Income Tax Credit, or EITC, for tax year 2021. Quick EITC history: The EITC has been in the tax code since 1975. It was created as an outgrowth of President Lyndon B. Johnson's War on Poverty as a way to help middle- and lower-income workers. Even though the EITC can... Read more →


Welcome to Part 10 of the ol' blog's series on 2021 tax inflation adjustments. We started with a look at next year's income tax brackets and rates. That first item also has a directory, at the end of the post, of all of next year's tax-related inflation updates. Today we wrap up the series (finally!) with standard optional mileage rate changes. Note: The 2021 figures in this post apply to that tax year's returns to be filed in 2022. For comparison purposes, you'll also find 2020 amounts that apply to this year's taxes, due April 15, 2021. via GIPHY As... Read more →


Add "The 12 Days of Christmas" to the list of things that were affected by the coronavirus pandemic this year. No, not the iconic holiday song. That's still around. But some of the lyrics took a hit when they were evaluated in 2020 for the annual PNC Christmas Price Index (PNC CPI). For this 37th look at the Bureau of Labor Statistics' (BLS) Consumer Price Index and how it applies to procuring the song's 12 gifts from a True Love, The PNC Financial Services Group had to make some hard choices. Notably, the 2020 PNC CPI had to adjust for... Read more →


Welcome to Part 9 of the ol' blog's series on 2021 tax inflation adjustments. We started with a look at next year's income tax brackets and rates. That first item also has a directory, at the end of the post, of all of next year's tax-related inflation updates. In today's post, we look at taxpayer penalties for filing (and paying) late, assessments on tax pros and how unpaid taxes could limit international travel. Note: The 2021 figures in this post apply to that tax year's returns to be filed in 2022. For comparison purposes, you'll also find 2020 amounts that... Read more →


Welcome to Part 8 of the ol' blog's series on 2021 tax inflation adjustments. We started with a look at next year's income tax brackets and rates. That first item also has a directory, at the end of the post, of all of next year's tax-related inflation updates. In today's post, we look at the tax considerations of U.S. taxpayers living and working abroad. Note: The 2021 figures in this post apply to that tax year's returns to be filed in 2022. For comparison purposes, you'll also find 2020 amounts that apply to this year's taxes, due April 15, 2021.... Read more →


Welcome to Part 7 of the ol' blog's series on 2021 tax inflation adjustments. We started with a look at next year's income tax brackets and rates. That first item also has a directory, at the end of the post, of all of next year's tax-related inflation updates. Today's post looks at next year's changes to Alternative Minimum Tax (AMT) calculations, as well as Social Security and nanny tax changes. Note: The 2021 figures in this post apply to that tax year's returns to be filed in 2022. For comparison purposes, you'll also find 2020 amounts that apply to this... Read more →


Welcome to Part 6 of the ol' blog's series on 2021 tax inflation adjustments. We started with a look at next year's income tax brackets and rates. That first item also has a directory, at the end of the post, of all of next year's tax-related inflation updates. In today's post, we look at how the annual changes help investors, high-earners and, eventually, estate heirs. Note: The 2021 figures in this post apply to that tax year's returns to be filed in 2022. For comparison purposes, you'll also find 2020 amounts that apply to this year's taxes, due April 15,... Read more →


Welcome to Part 5 of the ol' blog's series on 2021 tax inflation adjustments. We started with a look at next year's income tax brackets and rates. That first item also has a directory, at the end of the post, of all of next year's tax-related inflation updates. In today's post, we look at changes to some popular tax-related medical matters. Note: The 2021 figures in this post apply to that tax year's returns to be filed in 2022. For comparison purposes, you'll also find 2020 amounts that apply to this year's taxes, due April 15, 2021. Medical issues have... Read more →


Welcome to Part 4 of the ol' blog's series on 2021 tax inflation adjustments. We started with a look at next year's income tax brackets and rates. That first item also has a directory, at the end of the post, of all of next year's tax-related inflation updates. In In today's post, at changes to tax credit, deduction and income exclusion amounts. Note: The 2021 figures in this post apply to that tax year's returns to be filed in 2022. For comparison purposes, you'll also find 2020 amounts that apply to this year's taxes, due April 15, 2021. Deductions are... Read more →


Welcome to Part 3 of the ol' blog's series on 2021 tax inflation adjustments. We started with a look at next year's income tax brackets and rates. That first item also has a directory, at the end of the post, of all of next year's tax-related inflation updates. In today's post, we look at annual retirement plan contribution amounts, and, for some taxpayers, tax deduction and credit options and limitations. Note: The 2021 figures in this post apply to that tax year's returns to be filed in 2022. For comparison purposes, you'll also find 2020 amounts that apply to this... Read more →


Welcome to Part 2 of the ol' blog's series on 2021 tax inflation adjustments. We started with a look at next year's income tax brackets and rates. That item also has a directory, at the end of the post, of all of next year's tax-related inflation updates. Today we look at standard and itemized deductions, certain limitations on some Schedule A claims and the sort-of still around personal exemption amount. Note: The 2021 figures in this post apply to that tax year's returns to be filed in 2022. For comparison purposes, you'll also find 2020 amounts that apply to this... Read more →


It's that time of the tax year when things start coming at us fast. We just wrapped up the 2019 tax return filing season, giving us around two months to focus on tax moves to make before year's end to lessen the 2020 tax-year bite. Then each fall the Internal Revenue Service throws a ton of numbers at us that change things for the soon-to-arrive next tax year. C'mon, taxman! Sure, we've all learned to multitask, but really? Now? Do we really need this huge 2021 data dump at the end of a crazy COVID-19 tax year where we already... Read more →


The Social Security Administration (SSA) just gave retirees and other recipients of the program's payments some good news with the announcement of a small hike in their benefits year. Some higher earners, however, aren't so happy. In the same benefits raise announcement, the SSA noted that the amount of income subject to the Social Security payroll withholding also is going up in 2021. This amount, known as the Social Security wage base, is the maximum of earnings, by both salaried workers and the self-employed, that are subject to that portion of the Federal Insurance Contributions Act (FICA) tax. For the... Read more →


A quick Social Security note about for folks not yet at or near the benefits age about taxes on that pre-retirement income. More of it, known as the wage base, will be subject to the Social Security payroll tax. Details are in this post. Retirees checking on their investments. The income could make their Social Security benefits taxable. Today's a good day for millions of Social Security recipients. The Social Security Administration (SSA) has announced that benefits will increase a bit next year. Older folks who get regular monthly Social Security payments, along with those who receive Supplemental Security Income... Read more →


I've been rearranging some upcoming doctors' appoints that I made months ago, well before anyone had heard of COVID-19, much less watched as it overtook our lives. A couple were able to be conducted as teleconferences with my physicians. Some, however, require actual in-office visits. Like getting jabbed for blood work. I'm also rescheduling some appointments originally set for June. These are being changed not because of the coronavirus pandemic, but because of new medical insurance. The dates are now late instead of mid-summer in the hopes that the new policy transition goes smoothly and I won't have to hassle... Read more →


The delay this year of Tax Day until mid-July also means you have time to make the most of the 2019 health savings account (HSA) limits. One of the distressing health-related side effects of COVID-19 is that many of the millions who have lost jobs due to the pandemic also lost their medical coverage. A new analysis says that here in Texas alone more than hat 1.6 million Texans could become uninsured following job losses. Many who are able to replace employer-provided coverage will turn to a high deductible health plan (HDHP). As the HDHP name indicates, these policies require... Read more →


via GIPHY If you used your car for business purposes last year, you probably did the same thing I did on New Year's Eve. You took a quick look at your auto's odometer and jotted down the miles. Keeping track of your annual miles driven and those specifically attributable to business travel can help you reduce taxes on your self-employment income. There are a couple of ways you can track this travel, either by keeping good records of your actual business-related auto usage (more on this in a minute) or by claiming the optional standard mileage amount. That standard amount... Read more →


Welcome to Part 9 of the ol' blog's 2020 series on tax inflation adjustments. We started on Nov. 6 with a look at next year's income tax brackets and rates. Today we look at how much tax penalties could cost you or your tax preparer next year. Note: The 2020 figures in this post apply to 2020 returns to be filed in 2021. For comparison purposes, you'll also find 2019 amounts to be used in filing 2019 returns due April 15, 2020. IRS agents don't throw flags like football referees, but the tax agency isn't afraid to blow the whistle... Read more →


Welcome to Part 8 of the ol' blog's 2020 series on tax inflation adjustments. We started on Nov. 6 with a look at next year's income tax brackets and rates. Today we look at considerations of U.S. taxpayers living and working abroad. Note: The 2020 figures in this post apply to 2020 returns to be filed in 2021. For comparison purposes, you'll also find 2019 amounts to be used in filing 2019 returns due April 15, 2020. Where's the best place for the world's millions of expatriates? InterNation's latest annual Expat Insider Survey says it's Taiwan. Regardless of where they... Read more →