Tax planning
‘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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Here’s how uber-rich pass wealth to heirs tax-free when markets are down
Year-end Planning Here’s how uber-rich pass wealth to heirs tax-free when markets are down Published Mon, Oct 10 20221:44 PM EDTUpdated 2 Min Ago Greg Iacurci@GregIacurci WATCH LIVE Source
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IRS delays guidelines, waiving penalties for some inherited retirement accounts until 2023
Zinkevych | iStock | Getty Images If you inherited a retirement account in 2020 or 2021, the IRS is waiving penalties for some heirs who needed to start taking required minimum distributions right away, according to a notice issued Friday. The new rule won’t apply until 2023. Typically, there’s a 50% penalty when you skip […]
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Here’s how to pay 0% capital gains taxes with a six-figure income
Luminola | E+ | Getty Images It’s natural to fixate on portfolio losses, especially with the S&P 500 down more than 20% for the year. But you may still have gains after years of growth, and the profits could qualify for a 0% tax rate, depending on your earnings. The thresholds may be higher than […]
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Key Democrat outlines 5 priorities for $80 billion in IRS funding
Senate Finance Committee Chairman Ron Wyden, D-Ore., questions IRS Commissioner Charles Rettig at a Senate Finance Committee hearing. Tom Williams | Pool | Reuters Senate Finance Committee Chairman Ron Wyden, D-Ore., has outlined five priorities for the nearly $80 billion in IRS funding enacted in August through the Inflation Reduction Act. Wyden shared expectations for […]
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