Tax rates Feed

Close-up of National Geographic United States wall map. Click image to see all 50 states. Most states tend to operate on fiscal years, with July 1 being an effective date for a lot of law change State leaders, however, realize that their residents follow the Gregorian calendar, so they still make Jan. 1 the effective date for major revisions of law. I was surfing the Web on New Year's Day — doesn't everybody?!? — and ran across some interesting state tax law changes that took effective with the arrival of 2019. Below is a look at what I found. New... Read more →


Hello 2019! I'm not sure we're ready for you, particularly when it comes to the major tax code changes under the Tax Cuts and Jobs Act (TCJA). We'll deal with the real-life effects of the new tax laws for the first time when we file our 2018 returns. When that will be is still up in the air and depends on a resolution to the partial government shutdown. But even though Capitol Hill and many of Uncle Sam's offices remain in limbo, we taxpayers need to start now taking an up close and personal look at what the TCJA will... Read more →


Change is the only constant, as the old saying goes, and that's as true on the last day of the year as it is on the first. Those changes also could mean changes to your taxes, as some life-altering situations on Dec. 31 affect your taxes for the preceding 364 days. Take, for example, tying the knot. If you get married today, congratulations. Have a spectacular combined wedding reception and New Year's Eve party. Also get ready after the confetti and toasts to deal with some filing changes to your 2018 taxes. Your new Dec. 31 husband or wife status... Read more →


This is the first in a 10-part series on the upcoming 2019 tax year inflation adjustments. Links to additional tax-related inflation changes for next tax year are at this end of this article. It's the most wonderful time of the year. And while, confession time, I have been watching a lot of Hallmark holiday movies, I'm talking today about the overlap of one tax year and the approaching one. As the annual count of days winds down, we taxpayers must pay attention to ways to cut our current tax year's bill as well as make some initial plans to keep... Read more →


The World, Mostly by Leif Kurth via Flickr CC Donald J. Trump got a lot of attention when he popped down to Texas last week for a midterm campaign rally. He told the Houston crowd that he was a nationalist. That term, he explained, describes the philosophy he's espoused since the get go of his presidential political life. He wants to put America first. There's nothing wrong with wanting your country to get the best deals and treatment in international relationships. But Trump also narrowly, and to my thinking incorrectly, defined globalists as people who want to put global issues... Read more →


IRAs come in two forms, traditional and Roth. You can convert a traditional individual retirement arrangement to a Roth account, but reversing that hits a roadblock under the new tax law. There are lots of good reasons to convert a traditional IRA to a Roth retirement account. There also are lots of good reasons to change your mind about that IRA conversion and switch the account back to its traditional form. But time to recharacterize your Roth IRA, as the reversal is known, is running out. And it will be gone forever, or at least through 2025 under the new... Read more →


Hey, Uncle Sam, one of the funniest actresses out there is not feeling very cheerful right now and it's your fault. Tiffany Haddish is looking for a little gratitude from your tax collector. In a recent Instagram video, the award-winning star of the just-released "Night School" asked the Internal Revenue Service why, even though she pays her taxes "on time every year all the time," she never gets any thanks for her efforts. She doesn't let her state tax officials, the California State Franchise Tax Board, off the hook either for their similar lack of tax love. Shout outs all... Read more →


UPDATE , Oct. 1, 2018: The House has signed off on its three Tax Reform 2.0 bills to extend the individual provisions of 2017's Tax Cuts and Jobs Act. The Senate, however, is not so keen on the measures. Additional Senate tax action this year looks doubtful as the Upper Chamber focuses on other year-end priorities. The Tax Cuts and Jobs Act expanded the use of 529 education savings plans to cover elementary and secondary school costs. One of the House's Tax Reform 2.0 bills would also make 529 money available to pay some home-schooling expenses. (Photo by Chris Yarzab... Read more →


Americans have always been mobile, as evidenced by this vintage photo from Flatbush Moving in Linden, New Jersey. Now some folks say they're relocating because of new tax law limits on deductions. Now that the Treasury Department and Internal Revenue Service have made it clear that they will restrict state efforts to work around the new $10,000 cap on the deduction for state and local taxes (SALT), some folks are looking at other options. Among them, according to a New York Times story, is to move. (Unfortunately for them, the new law also, for the most part, ended the tax... Read more →


Long-term investors already get a tax break. They pay lower capitals gains tax rates when they sell assets held for more than a year. That tax benefit survived the Tax Cuts and Jobs Act (TCJA). Now some Republican lawmakers want to protect even more unearned money from taxes. Tax and political considerations: Rep. Devin Nunes (R-California) has introduced a bill that would index capital gains to inflation. The Ways and Means Committee member says his Capital Gains Inflation Relief Act (H.R. 6444) "is a common-sense reform that will remove an unjust tax, contribute to economic growth, and help both large... Read more →


I don't like roller coasters. Big Thunder Mountain Railroad, not Space Mountain, is my Disney World speed. Plus, as an investor, I get enough virtual and financial whiplash from following my portfolio. This week especially. From watching CNBC the last two days I've learned: The Dow is having its worst month in almost eight years. The market's fall of 1,179 points on Monday, Feb. 5, was the Dow's biggest drop ever. The 4.6 percent fall to close at just over 24,300 yesterday was, on a percentage basis, the biggest one-day drop for the blue-chip average since August 2011. We are... Read more →


There's a tax bill, but there is no tax reform. There's still an estate tax. There are still (some) state and local itemized tax deductions. There's still an alternative minimum tax. And there are enough other tweaks to confuse filers and keep tax pros very busy over the next 12 (and more) months. Ways and Means Chairman Kevin Brady (R-Texas) presides over the lone public hearing Dec. 13 of the House-Senate conference committee on H.R. 1, the Tax Cuts and Jobs Act. Final House and Senate votes on the bill are planned for next week. Basically, the Republican tax bill... Read more →


Before heading out on an Asian trip, the president met with House GOP members to talk tax reform. Among those at the plan briefing were, from left, Ways and Means Committee member Rep. Diane Black of Tennessee, House Speaker Paul Ryan of Wisconsin and W&M Chair Rep. Kevin Brady of Texas. (Photo courtesy Donald J. Trump Twitter account) The shiniest part of the Republicans' new tax plan is the reduction in tax rates. We would go from the current seven to just four. So how much of our earnings will fall into these new brackets? Here's what the Grand Old... Read more →


This is the first in a 10-part series on the 2018 tax year inflation adjustments. Links to the other posts are at this end of this article. When this post was first published, the White House and Congressional Republicans were still hoping to get some tax changes finalized by the end of the year. The IRS, however, isn't waiting didn't wait on Capitol Hill. The Internal Revenue Service on Thursday, Oct. 19, released its annual compilation of tax provisions that are affected by inflation. It also issued next year's retirement plan contribution changes. The upshot is that most amounts will... Read more →


Tax reform, or at least tax cuts, will top Congress' agenda when it gets back from August recess. But will Representatives and Senators actually rewrite the tax code the way most Americans want? Today's Shout Out Saturday piece says maybe not. Donald J. Trump reportedly is now backing a corporate tax rate of 20 percent to 25 percent, up from the 15 percent rate included in his April tax overhaul outline. That slightly higher business tax rate jibes with what corporate executives and business lobbyists say is attainable. That, however, is not what American taxpayers want, according to a recent... Read more →


"We looked at healthcare and said let's make sure that we do tax reform better and differently." — House Speaker Paul Ryan (R-Wisconsin) talking about what's next legislatively after the GOP failed earlier today to deliver on its seven-year pledge to end Obamacare. House Speaker Paul Ryan has been pushing his "A Better Way" economic and tax plan for years. Will he finally succeed in 2017 as a Republican-led Congress and White House turn their attention to tax reform? Doing a better job in rewriting the tax code than they did during the recent Affordable Care Act repeal and/or replace... Read more →


Californians who just can't kick their nicotine habit are now paying substantially more for their addiction. Effective April 1, the Golden State's tobacco tax went up by $2 per a pack of cigarettes. The state's tax on smoking now is $2.87 per pack. And while that is indeed a massive jump, it's just catching up on years of a low tax rate. It's been 20 years since California increased its cigarette tax. The tax increase, the final tax amount and the years it's taken for California to get here each were in the running for this week's By the Numbers... Read more →


This post was reviewed and updated Friday, May 4, 2018. Whenever I want to escape the crazy that is real life, I turn to the movies. Sometimes it's my favorite tax-themed films. Amanda Abbington and Martin Freeman, pictured here on the set of "Sherlock" with Benedict Cumberbatch, who plays the show's title character behind them, have separated. (Photo courtesy PBS Masterpiece) Other times when I can't get away for a couple of hours, I surf entertainment news. Go ahead, judge me. Then admit you've done the same! In perusing the web recently, I stumbled across a list of celebrity couples... Read more →


The Internal Revenue Service would really, really like if all of us would use tax software to prepare and e-file our taxes. It even gives around 70 percent of filers the chance to do so for free at the aptly named Free File section of the IRS website. But a lot of taxpayers who qualify for Free File decide instead to pay a tax pro to file their returns, according to a new survey by NerdWallet. Tax pros preferred: More than 1 in 3 taxpayers, or 38 percent, who make less than $50,000 annually hired a tax professional, according to... Read more →


Time is rapidly running out to make year-end tax moves, but if you're a septuagenarian, here's one that you definitely cannot afford to overlook. If you're 70½ or older, congrats and happy, happy on all those full and half birthdays! Remember, though, that now you must take out at least an IRS-specified amount from your tax-deferred retirement account(s) by the end of the year. Miss the deadline and you'll owe a major tax penalty. (Birthday party photo courtesy Today's Senior Network) Half birthday tax trigger: If you're 70½ and have a traditional IRA (or more than one of these accounts)... Read more →