A new tax credit for dependents offers a break for extended family members and even non-relatives. My mom is a fiercely independent octogenarian, but she still depends on me. Like today, when I'm taking her to have some dental surgery. She is not, however, a tax dependent. That means the hubby and I can't claim her on our tax returns in order to get the $500 Credit for Other Dependents. This tax break, newly-created by the Tax Cuts and Jobs Act (TJCA), also has been dubbed the Family Tax Credit or Non-Child Tax Credit. It's an add-on to the Child... Read more →
Taxes
Ransomware has evolved over the last three decades from a targeted cyber attack distributed on literal floppy discs to a major electronic security crisis for individuals, companies and governments. This type of malware typically locks out computer users and locks down their systems until the cyber hijackers are paid to return access to the information. In 2017, WannaCry ransomware went global, infecting more than 200,000 computers across 150 countries. Most recently, almost two dozen Texas towns were victims of a coordinated attack. The Lone Star State electronic lockouts follow patterns set by ransomware demands in Florida, Maryland and New York.... Read more →
Donald J. Trump speaking to supporters at an Aug. 15 rally in New Hampshire. (Photo from Trump's official personal Twitter feed) "If for some reason I wouldn't have won the [2016] election, these markets would have crashed. That'll happen even more so in 2020. See, the bottom line is … you have no choice but to vote for me because your 401(k), everything is going to be down the tubes. So whether you love me or hate me, you've got to vote for me." — Donald J. Trump Trump's recent campaign rally exhortation that people had to vote for him... Read more →
Classes are back in session in many communities across the United States. And part of the supplies that are being used to help educate our youngsters were paid for by their teachers. Every year, studies by both private groups and federal agencies report that most public school teacher pay for products they need to get their lessons across to the students. The amounts vary, ranging from nearly $500 in a U.S. Department of Education survey from several years ago to nearly twice that (or more) in some of today's classroom situations. Easy to claim: The good news for these dedicated... Read more →
Elizabeth Warren is a leader among Democratic presidential nominees in calling for a variety of new and increased taxes on the wealthy. (Photo courtesy Warren's Facebook page) Many of the folks trying to become the Democrat to challenge Donald J. Trump in 2020 support raising taxes on the wealthy. It's a popular U.S. campaign rallying cry, but globally, such taxes on net worth are vanishing. All for taking from the rich: The Democratic Party is bucking the global dying wealth tax trend. One of its top goals remains raising the top ordinary income tax rate, which the Tax Cuts and... Read more →
Arizona home to be auctioned to pay federal tax debt. I've seen a lot of estate sale signs lately. Either it's an indication of the changing demographics of my part of Austin or folks are trying to fancy up their garage sales. An estate (or renamed garage) sale basically is a way to dispose of most of an owner's property either because family doesn't want their deceased relative's items or the goods need to be sold to make a move easier. Uncle Sam regularly holds his own versions, but in many instances these government sales are to settle tax debts.... Read more →
Colorful houses, like these in Sisimiut, Greenland's second largest city that sits on Kangerluarsunnguaq Bay below Palasip Qaqqaa mountain, are found all across Greenland. (Photo by Algkalv via Wikipedia Commons) Sorry, United States, but Greenland doesn't want to become part of us. Yes, the U.S. buying the world's biggest island is, or rather, was a thing. Donald J. Trump, true to his real estate development roots, has broached the possibility of Greenland, according to The Wall Street Journal. People familiar with the discussion, reports the newspaper, said Trump has, "with varying degrees of seriousness, repeatedly expressed interest in buying the... Read more →
With markets down, it could be time to harvest tax losses or perhaps convert a traditional IRA to a Roth retirement account. What's scarier than Superman, the 415-foot tower roller coaster at Six Flags Magic Mountain in Valencia, California, that hits triple digit speeds? Some investors might say the recent stock market gyrations. (Photo courtesy Six Flags) Is the recent stock market drop freaking you out? How about the roller coaster ride back up, at least for a while, today? Yeah, it's worse than many stomach-churning amusement park rides and I'm right there, holding a barf bag, with you. But... Read more →
The tax law changes under the Tax Cuts and Jobs Act (TCJA) and its effect on withholding wreaked havoc this filing season. Some folks found, much to their dismay (and stronger reactions…) that for the first time in their tax-paying lives they owed taxes because they didn't have enough tax withheld from their paychecks. The Internal Revenue Service saw this coming. It tried to warn folks, encouraging them to adjust their withholding so that they wouldn't face this predicament. Then the IRS announced an easing of the penalty owed if you under withheld. Twice. Now, with the 2019 tax season... Read more →
Click screenshot to watch Sen. Rick Scott's full discussion on CNBC of the U.S.-China trade war and his tariff tax break suggestion. Everyone except trade warrior Donald J. Trump views tariffs as taxes on consumers. To offset tariffs' added costs to U.S. buyers, one Republican lawmaker is calling for a corresponding tax cut. "Anything we raise in tariffs we ought to give back to the public in tax reductions so that it doesn't impact American families," Sen. Rick Scott of Florida said Monday (Aug. 12) during an appearance on CNBC's Squawk Box. The Sunshine State's junior U.S. Senator didn't provide... Read more →
The Internal Revenue Service is continuing to tweak tax forms, releasing yet another version of the document workers use to figure out their paycheck withholding. The new draft of Form W-4, updated as of Aug. 8 and shown below, incorporated suggestions that Treasury and the IRS got on the version it made public at the end of May. The changes are being made (again) to ensure that taxpayers adjust their withholding to most accurately reflect the tax code changes made by the Tax Cuts and Jobs Act (TCJA). Click image to see the full Aug. 8, 2019, draft 2020 Form... Read more →
This February 2016 photo on Twitter of Donald J. Trump signing a tax return is one of the few, and unrevealing, looks we've gotten of his federal filings. The focus of Donald J. Trump and his White House change quickly. Issues that were boiling over just days ago quickly get pushed to a back burner by something else that's hotter. But some of those old topics are still simmering. And one of them, Trump's tax returns, saw the heat turned up a bit recently. It was, however, a former college student, not Trump, who was put on the hot spot.... Read more →
Oops! Someone at Topps was thinking about someone else when Shane, not Justin, Bieber's baseball card was produced. Did your mom throw out your baseball card collection when you went off to college? If so, you can start anew today, National Baseball Card Day, by picking up some brand spanking new cards. The Topps Company, the official trading card partner of Major League Baseball, is celebrating today by giving out free specially-made cards at MLB stadiums across the country, local hobby shops and a couple of major retailers. The new packs feature MLB stars and up-and-coming rookies. Lucky fans also... Read more →
Many things, like family considerations, prompt people to go into business for themselves. Whatever your reason for being your own boss, here are some tax matters to consider. The millions of taxpayers who hold wage-paying jobs where income taxes are withheld from their checks obviously will benefit from the Internal Revenue Service new tax withholding estimator. But what if you don't have a job where there's withholding? That's the case for millions of individuals who are self-employed See Also: 5 things to consider if you're thinking about becoming an independent contractor The work freedom of being your own boss comes... Read more →
UPDATE Aug. 21, 2019: In a stark reversal of yesterday's further tax cut considerations, Donald J. Trump today said he is no longer considering any such proposals. UPDATE Aug. 20, 2019: This proposal has bubbled back to the top of simmering economic stimulus ideas. As reports, predictions and fears of an impending recession increased, today Donald J. Trump again said he was considering indexing capital gains, which would give investors a big tax cut and primarily benefit the rich, and that he believed he could do it without approval from Congress. Members of the Upper Chamber of Congress are relying... Read more →
Paycheck withholding is most Americans' introduction to taxes. But even though millions of us have been seeing income taxes come out of our checks for years, the system still is confusing for many. It became a bigger mess this filing season, when folks filed their first tax returns under the Tax Cuts and Jobs Act (TCJA) changes. A lot of them were not amused. The unexpected price of wrong withholding: They discovered that they weren't getting the same big tax refunds they had in prior years. These annual spring payouts had served as distributions from their withholding tax deposits to... Read more →
After the vigils for victims of mass tragedies, efforts to help the victims and survivors appear. Make sure your gifts to such campaigns, especially online crowdfunding ones, go to those who need help and not scammers. (Photo by Catholic Church of England, Mazur/CatholicNewsUK via Flickr CC) Gilroy, California. El Paso, Texas. Dayton, Ohio. In an eight-day span, three separate shootings by lone gunmen in these cities left a total of 35 people dead, 54 injured. Residents in these cities are dealing with unspeakable horror and grief. Most of the rest of us in the United States and across the world... Read more →
It's been a summer of change for my neighborhood. Several of our neighbors have moved, including our next-door neighbors that I really liked. My former suburban Austinites are heading off to new jobs, other subdivisions they've discovered or to be closer to families across the state or country. A few also decided it was time to cash in on the rising property values of our neighborhood. I must admit, that's crossed my mind, but then I think moving and … Summer is prime moving time regardless of the reasons. Things tend to slow down at workplaces, giving you more time... Read more →
Image courtesy U.S. Coast Guard via Twitter Today is the birthday of one of America's earliest tax collectors, the U.S. Coast Guard (USCG). That's right. The force that we know as the coastal defense and maritime law enforcement branch of the United States Armed Forces had its beginnings as Revenue Marine. It was created by Alexander Hamilton on this day 229 years ago. Its job was to collect taxes at U.S. seaports. Lin-Manuel Miranda did drop a few tax references into his smash Broadway musical, but unfortunately for us tax and seafaring geeks, he didn't elaborate on our first Treasury... Read more →
The legendary outlaw Robin Hood, memorialized in this statue in Nottingham, England, took from the rich and gave to the poor. Nowadays, politicians offer Robin Hood style tax plans that increase levies on the wealthy to fund programs for lower income citizens. (Photo by sculptor James Woodford via Wikipedia Commons) If you've been following the cadre of campaigners for the 2020 Democratic presidential nomination, you know that several White House wannabes have offered tax plans calling for various tax hikes on richer Americans. The latest is from New York City Mayor Bill de Blasio, whose catch-all plan basically would, in... Read more →