Tax planning
Here are 4 ways to take advantage of your health-care expenses before the end of the year
ronnachaipark | iStock | Getty Images Health-care expenses can often be unpredictable and unwelcome. However, depending on your situation, there may be strategies you can employ that make those outlays a bit less financially painful. Because some of them involve taxes, experts say they shouldn’t be viewed in a vacuum. In other words, you may […]
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Biden names pick for new IRS head as agency plans for $80 billion funding, wrestles with backlog
The Internal Revenue Service building in Washington. SAUL LOEB/AFP via Getty Images New role a ‘challenging assignment,’ former IRS commissioner says Biden’s nomination comes at a critical time for the agency. After another difficult filing season, the IRS is still wrestling with a backlog. As of Nov. 4, there were 4.2 million unprocessed individual returns […]
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Massachusetts voters approve ‘millionaire tax.’ What it means for the wealthy
If you make more than $1 million a year in Massachusetts, you may soon be subject to a “millionaire tax” approved by voters this week through a ballot initiative. The new law creates a 4% tax on annual income above $1 million, on top of the state’s current 5% flat income tax, aiming to fund […]
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5 key personal finance issues this midterm election season — and what they mean for your wallet
As Americans head to the polls, several key personal finance issues are weighing on voters’ minds and wallets. This week, the Federal Reserve enacted its fourth consecutive 0.75 percentage point interest rate increase to fight inflation, triggering further stock market losses. Meanwhile, recession fears are growing, with 84% of Americans worrying how a prolonged economic […]
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‘Millionaire tax’ plans are on the ballot in California and Massachusetts. Here’s what that means for taxpayers
How states plan to spend ‘millionaire tax’ revenue While the proposed taxes sound similar, there are differences in how each state plans to use the revenue. In Massachusetts, assuming voters pass the measure, the tax is expected to generate about $1.3 billion of revenue in 2023, according to a Tufts University analysis. The state aims […]
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There’s still time for big savers to use ‘after-tax contributions’ to funnel more into 401(k) plans for 2022
If you’ve already maxed out 401(k) plan contributions for 2022 and you’re eager to save more for retirement, some plans have an under-the-radar option, experts say. For 2022, you can defer $20,500 into a 401(k), plus an extra $6,500 for investors 50 and older. But the total plan limit is $61,000 per worker, including matches, […]
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Here’s what investors need to know about the latest crypto tax reporting rules for 2022
Jose Luis Pelaez | Getty Images The IRS is sharing more details on how to report digital assets for the 2022 tax filing year, according to draft instructions. Since 2019, there’s been a yes or no “virtual currency” question on tax returns, requiring filers to check a box to disclose their taxable crypto activity. For […]
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Here’s how much you can earn and still pay 0% capital gains taxes in 2023
If you’re planning to sell investments or rebalance your taxable portfolio, you may be less likely to trigger a tax bill in 2023, experts say. This week, the IRS released dozens of inflation adjustments for 2023, including higher income tax brackets, increased standard deductions, bigger estate tax exclusions and more. The agency also bumped up […]
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IRS bumps up estate-tax exclusion to $12.92 million for 2023. Here’s what that means for wealthy Americans
Bernd Vogel | Getty Images Ultra-wealthy Americans can soon protect more assets from federal estate taxes, the IRS announced this week. Starting in 2023, individuals can transfer up to $12.92 million to heirs, during life or at death, without triggering a federal estate-tax bill, up from $12.06 million in 2022. Since married couples may share […]
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These are common (and costly) Roth IRA conversion mistakes. Here’s how to avoid them
Ridofranz | Istock | Getty Images Roth individual retirement account conversions may be alluring when the stock market dips. But it’s easy to make mistakes, financial experts say. The strategy, which transfers pre-tax IRA funds to a Roth IRA for future tax-free growth, may pay off when the market drops because you can buy more […]
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