Tax rates Feed

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 →


Updated Nov. 19, 2018, to include 2019 capital gains tax changes due to inflation adjustments. 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... 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 →


This post has been reviewed and updated, Friday, Dec. 14, 2018 Bear and bull statues face off outside the stock exchange in Frankfurt, Germany. It's been a typical year for the U.S. stock market. It's been up, sometimes way, way up. And it's been down, sometimes way, way down. You made some money on your investments. You lost some money on your investments. And now, you're finally looking to rebalance your portfolio, cashing in some lower-taxed capital gains and offsetting them buy unloading some of your (few, I hope!) bad asset choices. Good for you. But don't undermine that effort... Read more →


This post was updated for Small Business Saturday 2017 on Nov. 25, 2017. Small business owners are hoping that their shops are filled with lots of paying customers this annual Small Business Saturday. The first Small Business Saturday was Nov. 27, 2010. That initial year, it was the creation of the financial company American Express. In 2011, the U.S. Senate unanimously made the day official. The day, coming the Saturday after the Black Friday shopping rush, celebrates small businesses and encourages supporting them and how they impact communities. They also are hoping that by this time next year, their top... Read more →


It's that special tax time of year, when the Internal Revenue Service releases its annual inflation adjustments for more than 50 tax provisions. This is the first in a series on the 2017 tax year inflation adjustments. Links to the other posts are at this end of this article. For 2017, the total is 55 amounts changes, ranging from the widely used tax rate tables and income brackets and standard deduction and exemption amounts to the more arcane treatment of dues paid to agricultural or horticultural groups and the tax on arrow shafts. As much fun as it would be... Read more →


Remember back in July when New Jersey Gov. Chris Christie indicated that he might end the Garden State's tax reciprocity agreement with neighboring Pennsylvania? The Benjamin Franklin Bridge spans the Delaware River and connects Philadelphia, Pennsylvania, and Camden, New Jersey. It is used by commuters who live in one state and work in the other. He wasn't kidding. Friday, Sept. 2, was the last day for either state to stick with or pull out of the agreement for another year. And as the long Labor Day holiday began with lots of folks heading off for one last summer hurrah --... Read more →


The European Commission (EC) says Ireland illegally provided tax breaks to U.S. based technology giant Apple. Because of that alleged improper tax arrangement, the EC says Apple must pay Ireland $14.6 billion in back taxes. "This selective tax treatment of Apple in Ireland is illegal under EC state aid rules, because it gives Apple a significant advantage over other businesses that are subject to the same national taxation rules," according to the EC statement on the tax ruling. "The Commission can order recovery of illegal state aid for a ten-year period preceding the Commission's first request for information in 2013,"... Read more →