Extension of Tax Cuts and Jobs Act (TCJA) Could Cut Taxes by $1.1 Trillion According to New Study by
The Trump campaign has yet to release any new indication of whether a new tax code will be passed if President Trump is re-elected. A new report by the Tax Policy Center believes that instead of unveiling a new tax code, Trump could instead simply extend the TCJA through 2030. According to the report, extending the individual income and estate tax provisions of the TCJA would reduce federal revenues by about $1.1 trillion from 2021 through 2030. Nearly all the reductions woul
2021 and 2020 Inflation-Adjusted Tax Rates and Income Brackets
Due to some coronavirus and economic relief funding, we saw a few changes to the United States tax code. However, one of the virtually unchanged portions of the tax code is how individuals are taxed under the TCJA of 2017. Recently, the IRS released the tax rates and income brackets for completing your 2021 tax return in 2022. Let’s take a look at the adjusted rates in addition to the 2020 tax brackets that will be reported on your return to be filed in 2021. Per usual, the c
2021 Social Security Updates from the Social Security Administration
Social Security recipients should take note to recent updates from the Social Security Administration. Today, the agency announced that benefits will slightly increase next year. Older taxpayers who get regular monthly Social Security payments, along with those receiving Supplemental Security Income (SSI), will see their checks go up by 1.3%. For those of you that are visual learners, check out this table from the SSA that details typical receipts before and after the 1.3% in
What To Do If You Receive IRS Notice 1444-A from the IRS.
First off, you should be excited because the government is trying to send you money in the form of an Economic Impact Payment. If you receive this letter in the mail, you should take action prior to October 15, 2020 or else you may lose your right to the Economic Impact Payment. If you do not have a filing requirement and are not planning on filing a 2019 tax return, you can register online for an Economic Impact Payment using the Non-Filers: Enter Payment Info tool on IRS.go
If Proceeds from the Sale of My Home Are Used to Pay Off My Mortgage, Are They Taxable?
According to the IRS, the answer is maybe. The amount of the proceeds from the sale of your home that you use to pay off the mortgage is not a factor in figuring your taxable amount for the sale. Instead, the amount you realize on the sale of your home and the adjusted basis of your home are important in determining whether you are subject to tax on the sale. If the amount you realize, which generally includes any cash or other property you receive plus any of your indebtedne
Extraordinary Events Mean New Filing Deadlines
2020 can largely be described with two words: dumpster fire. The term has almost become a phrase that we use in our everyday lives due to the events of the past ten months. For some taxpayers, the events of 2020 mean that the due dates for their tax filings have been extended. The situations are far from ideal, but some taxpayers will gladly accept the additional time. Members of the military serving in combat zones can get an extra 180 days from their last day in those dange