What retirees need to know about qualified charitable distributions

What retirees need to know about qualified charitable distributions

David Jakle | Image Source | Getty Images If you’re retired and giving to charity this holiday season, experts say there’s a way to trim your 2022 tax bill while supporting your favorite cause. Despite economic uncertainty, the majority of American adults plan to donate similar amounts this year as they did last year, a … Read more

President Biden decides on nomination for IRS Commissioner

President Biden decides on nomination for IRS Commissioner

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 … Read more

What the ‘millionaire tax’ in Massachusetts means for the wealthy

What the ‘millionaire tax’ in Massachusetts 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 … Read more

What ‘millionaire tax’ plans on California, Massachusetts ballots mean for taxpayers

What ‘millionaire tax’ plans on California, Massachusetts ballots mean 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 … Read more

How to save above 401(k) deferral limits with after-tax contributions

How to save above 401(k) deferral limits with after-tax contributions

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, … Read more

Here’s how to pay 0% capital gains taxes with a six-figure income

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 … Read more

How high inflation may affect which tax bracket you’re in next year

How high inflation may affect which tax bracket you’re in next year

Jamie Grill | Getty Images Typically, the IRS releases inflation adjustments for the following year in October or November, and Pomerleau predicts 7% increases across many provisions for 2023. “This year, we’ll see a larger-than-average adjustment because we’ve experienced higher-than-usual inflation,” he said. This includes higher tax brackets and a bigger standard deduction. For example, … Read more

The extended tax deadline is Oct. 17. Here’s what filers need to know

The extended tax deadline is Oct. 17. Here’s what filers need to know

Cecilie Arcurs | Getty Images There’s about one month until the Oct. 17 tax deadline extension, and experts say filers need to prepare, especially for more complicated returns. An estimated all-time high of 19 million American taxpayers filed an extension for their 2021 returns, according to the IRS. Kevin Brady, a certified financial planner and … Read more

How to claim IRS refund for late-filing fees from 2019 or 2020 returns

How to claim IRS refund for late-filing fees from 2019 or 2020 returns

If you missed the deadline for 2019 or 2020 tax returns, you may receive a refund for late-filing penalties. But you must file overdue returns by Sept. 30 to qualify. The IRS will shell out more than $1.2 billion in collective refunds or credits to nearly 1.6 million late filers, according to the federal agency. … Read more

When to claim climate tax breaks, rebates

When to claim climate tax breaks, rebates

Sebastian Rothe / Eyeem | Eyeem | Getty Images Households may soon be able to claim thousands of dollars in tax breaks and rebates if they take steps to reduce their carbon footprint. But eco-friendly consumers must wait until 2023 — perhaps even 2024 or later — to see many of those financial benefits. The … Read more