Meanwhile, the rest of us regular taxpayers say thanks for the offer and, as Tax Day 2020 looms, continue to look for ways to keep from paying so much on our nowhere-near-a-million earnings. If you're still working on your tax return instead of jetting off in your private plane to a luxury destination, then you might agree with the latest tax-the-rich plea. You also might need some of the tax-saving tips listed later in this post. With July 15, aka coronavirus Tax Day 2020, looming, millions of taxpayers are scouring their records and the tax laws looking for ways to... Read more →
Rich Wealthy
Former Vice President Joe Biden meeting supporters in Iowa last year in the early days of his campaign. Now he's the Democratic presidential nominee. His and opponent Donald Trump's tax plans will be a part of the election discussions. (Photo by Gage Skidmore via Flickr) It's a done deal. Former Vice President Joe Biden will be the Democrat challenging Donald J. Trump this November for the White House. Biden secured enough delegates last week to formally become the Democratic nominee on the first ballot at the party's convention. That official imprimatur will come in August at the Democrats' combined in-person... Read more →
GivingTuesday.org Hello Giving Tuesday. No, the world has not gone so thoroughly whack that we've jumped to the Tuesday after Thanksgiving. Rather, because of the unprecedented, and unexpected, need caused by the coronavirus pandemic, the creators of Giving Tuesday are encouraging those who can afford to give to participate in Giving Tuesday Now. As in today. This new global day of giving is in addition to the fall event, which has been around since 2012 and is scheduled this year for Dec 1. Potential charities, philanthropic activities:"We believe that generosity has the power to unite and heal communities in good... Read more →
Image via Fotolia You're doing your part to help flatten the coronavirus transmission curve. You've been sitting at in your house for weeks. (Thanks, streaming services!) You're washing your hands so much, they're raw. (Moisturize, too. It's an added coronavirus prophylactic.) You're providing lessons and activities for your now home-schooled kiddos. (Take into account your child's needs and personality and take advantage of the many online resources.) But you want to do more. Specifically, you want to help others who aren't in such relatively good situations as you and yours. Thank you! There are many ways to help, notably by... Read more →
Friday the 13th scares a lot of folks, but there are some tax breaks that are almost as cuddly as this ebony kitten. It's another Friday the 13th, but the last thing we need in March 2020 is more stuff to worry about. So what's better help take our minds off the very scary COVID-19 pandemic and all its ramifications — like no sports to divert our attention! — than taxes? Yes, taxes. Really. There's no word yet as to whether the April 15 filing deadline and any due tax payments will be extended. But there still are a lot... Read more →
For folks with money in the stock market, the coronavirus' effect on their holdings is more terrifying than Michael Myers, the persistent slasher of "Halloween" horror movie fame. I confess. I've been glued to cable TV financial channels this week. They're showing, for owners of stocks, a real-life horror movie. The evil and infectious COVID-19 monster is maniacally slashing investment gains. Who or what can show up (soon, please!) to stop this crazed killer of our planned comfortable retirement? OK, I might be taking this sequel — and that's what it is; market corrections and recessions have happened before —... Read more →
Having plenty of money apparently also has some drawbacks. Really. One is that you could soon get more attention from the Internal Revenue Service, especially if you've been, shall we say, a bit lax in letting Uncle Sam know about your how well you're doing. The IRS announced today that it will be sending agents to visit taxpayers who haven't filed returns or didn't do so in a timely manner in 2018 or previous years. These particular in-person tax inquiries, according to the IRS, will be on those whose income is $100,000 or more. Audit income disparities: These in-person audits... Read more →
The Setting Up Every Community for Retirement Enhancement Act, or SECURE Act as it's popularly known, was attached to the omnibus spending legislation enacted in late 2019. Taxpayers, lawmakers and investment advisers generally supported most of the measure's changes to how we stash and ultimately access our retirement funds. One SECURE provision, however, is causing some concerns, especially among those who have accumulated large IRA holdings and who had planned to leave the bulk of that money to heirs. They and, more importantly, their heirs no longer have access to what used to be known as a stretch IRA. Ending... Read more →
Every salaried worker is well aware of payroll taxes. These are taxes that come out of our earnings and go toward the Federal Insurance Contributions Act (FICA) programs, or what we know as Social Security and Medicare. Or, as the old first-time worker joker goes, "Who the heck if FICA and why is he getting some of my money?" FICA for now: Each FICA component is a percentage of a workers' pay and is paid by both the employer and employee. The total Social Security tax is 12.4 percent, split evenly between the two tax sources every pay period. The... Read more →
Yes, I bought a ticket for the Jan. 29 Powerball. I always do when the jackpot of that and the other national lottery, Mega Millions, gets into the, well, mega million-dollar range. No, I didn't win. Again. Last night's Powerball payout, which had climbed to $396.9 million, is going to the lucky person who bought the winning ticket in Florida. Yes, I am contacting my Sunshine State friends and relatives! In addition to the one big winner, three other Powerball tickets worth $1 million each went to ticket holders in Ohio, Virginia and, again, Florida. If you're one of the... Read more →
"Do nothing" has long been the derisive descriptor attached to the U.S. Congress. Actually, though, the House and Senate could more accurately be described as a legislative body that does things that don't have any chance of becoming law. That's the case most recently with a bill that would eliminate, at least temporarily, the $10,000 cap on tax deductible state and local taxes, referred to by the acronym SALT. Cutting SALT in the tax diet: The House last week narrowly passed, by a 218 to 206 margin, H.R. 5377, dubbed the Restoring Tax Fairness for States and Localities Act. The... Read more →
Congratulations! You made it through Thanksgiving. And Black Friday, Small Business Saturday and Cyber Monday. Are you ready for one more special day before the end-of-year biggies? I'm talking about today, Giving Tuesday. Giving Tuesday, a post-Thanksgiving fixture since 2012, is the unofficial kick-off of the annual end-of-year charitable season Today was designed as a global day during which folks are encouraged to give back to their communities and the charitable causes they care about. The timing fits right into the end-of-year solicitations by nonprofit organizations and the annual tax considerations of donors. Tax cuts also cut donor numbers: Over... Read more →
These carolers, dressed in Dickensian attire, are no doubt singing traditional Christmas tunes, not my reworked and tax-themed "O Tannenbaum." (Photo by Chris Waits via Flickr CC) O Tax Year-End (O Tax Year Moves) O Tax Year-End, O Tax Year-End, How are thy days so nearing! O Tax Year Moves, O Tax Year Moves, How are thy days so wearing! Not only in the wintertime, But even in young spring is thy prime. O Tax Year-End, O Tax Year Moves, How are thy days so nearing! Yes, that's my attempt at tax lyrics to the tune "O Tannenbaum," known here... Read more →
The men and women hoping to win the Democratic presidential nomination have gotten a lot of attention for their proposals to tax the wealthy. That's obviously an area to watch, as the money could help pay for some other tax and public policy pitches. But most of us aren't wealthy. So what is really important to us is how much of a tax bite the Internal Revenue Service would take out of our average Jane and Joe Taxpayer income under Democratic plans. The Tax Foundation has looked at the tax proposals from the four Democratic White House wannabes who, at... Read more →
A walk along Long Bay in the British Virgin Islands (Photo courtesy Long Bay Beach Club Resort) The first Caribbean vacation the hubby and I took was to the British Virgin Islands (BVI). We had a lovely suite on a hillside overlooking Long Bay. The beaches were fantastic, the weather was ideal, the food superb and we — and by we, I mean the hubby — got in some scuba diving during a day-sail trip. I saw that barracuda in the water and opted to stay on deck. Since then, we've hit a few other island getaway spots, but BVI... Read more →
Photo by Chris/spike55151 via Flickr There's a saying that any tax law bill should be subtitled the Perpetual Employment for Accountants Act. The thinking, in both the financial and political worlds, is that no matter what Congress does to the Internal Revenue Code, we'll need tax professionals to decipher at least some of it. Or to help guide you, if you can afford it, through the legislative and legal maze that will allow you to avoid or at least reduce the effects of some of the tax laws. That's the point of Paul Sullivan's analysis of proposed wealth taxes. "Name... Read more →
Welcome to Part 7 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 changes to the Alternative Minimum Tax (AMT) and next year's Social Security wage base. 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. Thanks to tax reform's changes, the AMT is no longer an ATM for the tax collector. The... Read more →
Welcome to Part 6 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 the annual changes help investors their families and eventual heirs. 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. OK, maybe the rich don't literally burn money. But as the saying goes, the very wealthy really are different from... Read more →
November is the place for perfectly roasted Thanksgiving bird, not the many tax turkeys that can gobble up your money. These monthly tax moves are a great garnish as you finalize your 2019 tax year menu. Turkey attack from South Park via GIPHY It's November. You know what that means. Year-end tax move time. Oh yeah, and holiday plans. I hear ya. It's that crazy hectic part of the year, whether you're the host/hostess with the most/mostest or planning to travel to your Thanksgiving festivities. But you also need to add taxes to the mix. Now. Before you get all... Read more →
Leonardo DiCaprio living the rich life in a scene from The Great Gatsby. (Film publicity photo courtesy Warner Bros.) The hubby and I are of that age where we're thinking about our estate plan. I know, financial planners say that every age is a good one to think about your estate. Planning helps you accumulate it, not just decide where it goes after you're gone. Still, most people, rightly or wrongly, don't tend to think about their estates until they get older. One thing a lot of us won't have to worry about, at least not if we shuffle off... Read more →