National taxes
If you win the $630 million Mega Millions jackpot, here’s how much would go to taxes
MARK RALSTON | AFP | Getty Images So you didn’t win the $555 million Mega Millions jackpot Tuesday night. The glass half-full view? Phew! You dodged a huge tax bill. Of course, you get another shot in the next drawing to land a windfall — and then give a boatload of it to Uncle Sam. […]
Read More
These midyear tax strategies can trim next year’s bill from the IRS and reduce ‘unwelcome surprises’
seksan Mongkhonkhamsao | Moment | Getty Images 1. Review tax withholdings When starting a new job, you fill out Form W-4, covering how much your employer withholds from your paychecks for federal taxes. But you need to revisit those withholdings, especially for major life changes such as marriage, having children or starting a side business. […]
Read More
There’s a growing interest in direct indexing as the investing trend becomes ‘democratized’
As demand grows for specialized portfolios, a trend known as direct indexing is quickly becoming an option for more investors. Rather than owning a mutual or exchange-traded fund, direct indexing is buying the stocks of an index to achieve goals like tax efficiency, diversification or values-based investing. Traditionally used by institutional and high-net worth investors, […]
Read More
Tax return backlog is still ‘crushing the IRS’ — and taxpayers — as pileup exceeds 21 million, agency watchdog reports
IRS Commissioner Chuck Rettig testifies before the Senate Finance Committee on April 7, 2022. Kevin Dietsch | Getty Images News | Getty Images The IRS backlog of tax returns has swelled over the past year, despite efforts to clear the pileup, according to an agency watchdog. There were 21.3 million unprocessed paper returns as of […]
Read More
Here’s when tax-loss harvesting makes sense … and when it doesn’t
When the stock market dips, a strategy known as tax-loss harvesting can be a silver lining. But it doesn’t make sense for all portfolios, financial experts say. Here’s how tax-loss harvesting works: You can sell declining assets from your brokerage account and use the losses to offset other profits. Once losses exceed gains, you can […]
Read More
Retirement tax breaks benefit higher earners, leaving middle-class savers behind, report finds
Fstop123 | E+ | Getty Images Tax breaks designed to boost retirement savings may primarily benefit higher earners, leaving middle-class workers behind, according to a report from the National Institute on Retirement Security. With most Americans receiving less than half of preretirement income from Social Security, many rely on employer-sponsored savings plans and individual retirement […]
Read More
The IRS is working to increase its audit rates for higher earners
Jeffrey Coolidge | Photodisc | Getty Images The IRS is working to boost its audit rates for the wealthiest Americans, according to a statement recently released with the agency’s annual Data Book, covering activities for the 2021 fiscal year. While plummeting audits have drawn scrutiny from Congress, percentages have doubled for filers making over $100,000 to more […]
Read More
Still missing your tax refund? You’ll soon receive 5% interest — but it’s taxable
Bill Oxford | E+ | Getty Images If you’re still waiting for a tax refund, there’s a silver lining: it may be accruing interest, and the rate jumps to 5% from 4% on July 1, according to the agency’s latest quarterly adjustment. Typically, the IRS has 45 days after the filing deadline to process returns […]
Read More
The number of billionaires soared during the pandemic. How tax proposals aim to reduce wealth inequality
A mobile billboard calling for higher taxes on the ultra-wealthy depicts an image of billionaire businessman Jeff Bezos, near the U.S. Capitol on May 17, 2021 in Washington, DC. Drew Angerer | Getty Images A new billionaire was created on average about every 30 hours during the Covid-19 pandemic, according to a new report by […]
Read More
Tax breaks aren’t prime reason for high-net-worth philanthropy, study finds
Maria Teijeiro | OJO Images | Getty Images Tax breaks aren’t the primary incentive for philanthropy among the ultra-wealthy, according to BNY Mellon Wealth Management’s inaugural Charitable Giving Study. The report, polling 200 individuals with wealth ranging from $5 million to more than $25 million, found the top three motivators were personal satisfaction, connection to […]
Read More