Tax reform Feed

President Joe Biden, flanked by Vice President Kamala Harris, addresses the Department of Defense. (White House Facebook page photo) It's a new tax year, a new filing season belatedly underway and a new Administration with some ideas on tax changes. Every time a new president moves into the Oval Office, especially one of the opposite party, political wags try to make pithy observations. Personally, I bow to some esteemed wits of the past, like Will Rogers, who said, "The difference between death and taxes is death doesn't get worse every time Congress meets." Rogers' sardonic comment came to mind because... Read more →


We're still not sure what will happen with the tax code as we start the second Trump term, but here are some possibilities. Last weekend, one of my posts was on the long list of ways the Republicans might pay for extending this year’s expiring Tax Cuts and Jobs Act of 2017 provisions and other Donald J. Trump tax proposals. So, this weekend, it seems fitting to look at what those proposals might pay for. I’m giving Saturday Shout Outs to some articles on possible revived, tweaked, and/or new tax laws in 2025. The first is a slide show from... Read more →


Working from home is a convenience employees don't want to surrender, according to recent poll. Conducting business from your home is still an option is you're self-employed, and you also might be able to claim the home office tax deduction. Working from home has its own unique distractions, but almost half of employees who do their job from their homes say they would quit rather than return to a full 40 hours a week in their offices. (Photo by Ketut Subiyanto) Among the slew of presidential actions taken by Donald J. Trump since his return this week to the Oval... Read more →


Photo by Scrumshus - Own work, Public Domain Work is about to begin in earnest on the Tax Cuts and Jobs Act (TCJA) of 2017 provisions set to expire at the end of 2025. With Donald J. Trump returning to the Oval Office, Republicans will have, as they did when the tax reform bill passed eight years ago, control of the House, Senate, and White House. The only thing that appears to be standing in the GOP’s way is dollars. Tax cuts’ ongoing costs: Extending the expiring provisions of the Trump tax cuts could cost as much as $4 trillion... Read more →


Saying "I do" also means saying hello to some tax changes in your new wedded life. (Photo by Jakob Owens on Unsplash) The end of each year is a good time to reflect on what happened the previous 12 months. For most of us, that includes some good events, some sad ones, and some still shaking out as we’re about to enter a brand new year. Many of these changes also could affect our taxes. So, as a bit of year-end preplanning, here are six ways that the Internal Revenue Code shows up when we encounter personal and lifestyle changes.... Read more →


Photo by Tatyana Mazepova It’s the holiday season, so many of us have travel on our minds. That includes the Internal Revenue Service. AAA expects 2.5 million more people will be on the roads for the year-end holiday period, which is classifies as Saturday, Dec. 21 to Wednesday, Jan. 1, 2025. That comes to a total of 107 million people making a road trip of 50 miles or more, just shy of the record 108 million drivers in 2019. But Uncle Sam’s tax collector isn’t narrowly focused on who is hitting the highways over the next few days. The IRS,... Read more →


Will this higher cost across the country be enough to convince lawmakers to revise the $10,000 state and local tax (SALT) federal tax deduction cap? Before the Tax Cuts and Jobs Act (TCJA) of 2017 was enacted, I’d spend this time of year deciding whether to pay our home’s annual property tax bill by Dec. 31 or wait until its due date of Jan. 31 the following year got closer. It wasn’t just a cashflow decision. It also affected our tax filing. Or did, as I noted, before the Republican tax reform bill limited the amount of state and local... Read more →


Last month, the Internal Revenue Service issued its annual inflation adjustments for myriad tax provisions. The new numbers were released before the Nov. 5, so there was a bit of concern that these figures could dramatically change after 2025. The trepidation was based on the expiration at the end of next year of mostly individual tax breaks in the Tax Cuts and Jobs Act (TCJA) of 2017, the signature tax law in Donald J. Trump’s first term. Now, with Trump returning to the Oval Office in January, along with Republican majorities in the House and Senate, there’s a bit more... Read more →


Streaming fans in Louisiana soon could be paying more to watch their favorite shows and movies. This time, though, they can’t blame the services providing the programming. Their ire over more costly entertainment is due to Pelican State lawmakers who now are meeting in a special session to focus on Gov. Jeff Landry has proposed a reworking of Louisiana’s tax structure. More subject to sales tax: Part of the tax overhaul is an expansion of s part of targets subject to Louisiana’s 4.45 percent state sales tax. It would be levied on several digital products and services, including online news... Read more →


Before law changes, the now inflation-indexed Alternative Minimum Tax, known as the AMT, seemed to work like an ATM for the U.S. Treasury. When the AMT was created in 1969 to ensure wealthy individuals paid at least some tax, it wasn't indexed for inflation. Until that changed with the 2017 tax reform law, the AMT adversely affected a lot of less-wealthy taxpayers. (Photo by Ali Mkumbwa on Unsplash) What's worse than figuring your tax bill? Having to figure a second, higher, parallel amount you might owe. That's a situation that taxpayers who owe the Alternative Minimum Tax, or AMT, end... Read more →


Plus, a look at what next year’s inflation bumps mean to estate planning, gifts you give before you go, youngsters' investment earnings, and more. Leonardo DiCaprio in "The Great Gatsby," the 2018 movie version of F. Scott Fitzgerald's novel. (Warner Brothers Pictures promotional photo) “Let me tell you about the very rich. They are different from you and me.” F. Scott Fitzgerald didn’t add taxes in his elaboration of those differences in his 1925 short story “The Rich Boy,” but he could have. While most of us middle-income taxpayers get our money working for wages, wealthier individuals tend to let... Read more →


“Oh, yeah. That’s the spot,” seems to be what this Chow Chow is thinking as he’s getting a neck rub from his owner. (Photo by Omid Armin on Unsplash) Happy National Dog Day! Or, for canine lovers, the 239th day of Dog Year 2024. Personally, I’m a cat fan. But many of my relatives are pooch parents. And let’s be honest, whatever creature you choose to welcome into your home, the animals are part of your family. So, we should be able to claim them as dependents, right? Sorry, but wrong. The Internal Revenue Service probably is full of pet... Read more →


The Nov. 5 election results will help put the fate of the Republican tax reform law into sharper focus. Provisions that affect individual taxpayers will end on Dec. 31, 2025. The next Congress and president will decide which ones will stay or go. Regardless of who wins the U.S. presidency this November, the next occupant's first year in (or return to) the Oval Office will be during a potentially tumultuous year for taxes. That’s because 2025 is when the Tax Cuts and Jobs Act’s (TCJA) individual provisions expire. So, Congress will be working to save or ax, depending on party... Read more →


The outcome of November’s elections could determine the fate of the Tax Cuts and Jobs Act bill. Key provisions of that Republican tax code overhaul are set to expire Dec. 31, 2025. Potentially expiring tax laws include the individual income tax rates, estate taxes, the cap on deducting state and local taxes (SALT), the section 199A deduction for passthrough income, and bonus depreciation. In anticipation of the impeding end of some popular tax provisions (and what that might mean to voters this year), Ways and Means Committee Chairman Jason Smith (R-Missouri) and Tax Subcommittee Chairman Mike (R-Pennsylvania) set up teams... Read more →


Photo: President Joe Biden/White House Facebook page In his State of the Union address on March 7, President Joe Biden touched on how he wants to spend our money in the coming 2025 fiscal year. The Biden Administration followed up the next week with its formal budget proposal in the Treasury Department's General Explanations of the Administration's Fiscal Year 2025 Revenue Proposals. The Green Book, as it's popularly known, describes the tax proposals in the budget, along with associated revenue estimates. While a president is required by law to present a budget, what it includes — both in Biden's remarks... Read more →


President Joe Biden has targeted capital gains tax laws in his fiscal year 2025 budget. But don't freak out if you have some money in the markets. For the most part, Biden's looking to get more from really wealthy market mavens who typically pay lower capital gains tax rates on the long-term assets they sell. Collecting billionaires' unrealized capital gains: When you sell an asset for more than your paid for it, that profit is a capital gain. The tax rate for these gains typically is less than ordinary tax rates that apply to earnings like wages. In most cases,... Read more →


Photo by Waldemar on Unsplash The major challenge for Congress right now is finalizing funding so the federal government won't shut down in March. But some members also are, as noted in yesterday's post, trying to get a mini tax extenders measure passed. And that's not the only tax bill on some lawmakers' minds. A bill to eliminate the federal estate tax was introduced just as the larger bipartisan House/Senate tax bill was clearing the House Ways and Means Committee. Estate tax elimination effort. Again: Some cynical Washington, D.C., watchers might say this bill was introduced primarily for political purposes.... Read more →


This pup looks like he's asking it it's time to open gifts. (Photo by Unsplash+ in collaboration with Getty Images) Next Monday morning, Dec. 25, many families will welcome a new member. I'm talking, of course, about a pet. A puppy, kitten, or other pet of any type of age can be a wonderful addition to a home. Pros and cons of pets as presents: But many animal groups and veterinarians warn against giving a pet, especially as a surprise, during the holidays. This already is a stressful time for many, and if everyone who will be involved in the... Read more →


Photo by Xingchen Yan on Unsplash If your work involves driving, the Internal Revenue Service has some good news for your 2024 business trips. Today, the tax agency announced that on Jan. 1, 2024, the standard optional mileage rate you can use to claim those eligible miles will go to 67 cents per mile. That's a 1.5 cent increase over the 2023 mileage rate. However, the other two mileage rates that the IRS evaluates and adjusts each year are going down. Travel for medical and, in the case of qualified active-duty members of the Armed Forces, moving purposes will be... Read more →


Before law changes, the now inflation-indexed Alternative Minimum Tax, known as the AMT, seemed to work like an ATM for the U.S. Treasury. The AMT was created 54 years ago to ensure the rich paid at least some tax, but since it originally wasn't indexed for inflation, it increasingly affected a lot of less-wealthy taxpayers. (Photo by Unsplash+ in collaboration with Getty Images) What's worse than figuring your tax bill? Having to figure a second, parallel amount you might owe. That's a situation that taxpayers who owe the Alternative Minimum Tax, or AMT, end up facing at filing time. The... Read more →


Plus, a look at how a higher cost of living affects gifts before you go, youngsters' investment earnings, and more. Photo by Lance Reis on Unsplash What we would do with our wealth may differ, but most of us want to be rich. And even if the Internal Revenue Service is successful in its recently announced effort to crack down on higher income tax evaders, having money is always preferable. In fact, if you've got beaucoup cash, you don't really have to try to slip one past Uncle Sam. Many of the current wealth-related provisions in the Internal Revenue Code... Read more →