Taxes

Leaving the Golden State? California’s 13.3% rate is the same on ordinary income and capital gain, and under a pending tax bill the top 13.3% rate could climb to 16.8%. Plus, California has even proposed a wealth tax. Even without proposed hikes, paying 13.3% in non-deductible state taxes (after the IRS $10,000 cap) is painful. You can leave for

Today’s column addresses questions about Social Security’s earnings test, options once reaching full retirement age and having received disability benefits and which month can be optimal to file in. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc, which markets Maximize My Social Security

Americans are merely days away from the launch of the new Child Tax Credit on July 15, 2021. While the credit has been around since the Clinton Administration, the version from the Biden Administration is projected to have a significant impact on the country. From helping middle class families save for childcare and college to helping lower

While the White House and congressional Democrats are feverishly trying to enact massive, economy-killing tax increases, numerous states are going in the opposite direction: They’re cutting taxes. This segment of What’s Ahead focuses on how local officials are recognizing that lower tax rates mean more opportunities and prosperity. Ohio engineered the biggest tax reduction in

With a week to go before the new Child Tax Credit being rolls out, President Joe Biden continues to make his vision for America known on a trip to McHenry County College in Illinois on Wednesday, July 7, 2021.  “To truly win the 21st century — and once again lead the world — to truly

Omeed Firouzi with Philadelphia Legal Assistance discusses the upcoming advance child tax credit payments and the related potential challenges for taxpayers and practitioners. This transcript has been edited for length and clarity. David D. Stewart: Welcome to the podcast. I’m David Stewart, editor in chief of Tax Notes Today International. This week: extra credit. In mid-July, the IRS

Today’s column addresses questions about whether Social Security reps normally try to convince people to take their retirement benefit before they turn 70, whether to file for retirement benefits after taking survivor benefits and when spousal benefits could be paid along with public pensions. Larry Kotlikoff is a Professor of Economics at Boston University and

Anyone with earned income can make a non-deductible (after tax) contribution to an IRA and benefit from tax-deferred growth. But it may not be worth it due (in part) to often overlooked ongoing recordkeeping requirements. For many, the biggest risk and most common downfall is significant: paying taxes again when withdrawing the money in retirement.

The American Rescue Plan passed last March included $1.9 trillion in economic relief for individuals and businesses affected by the Covid-19 pandemic. In addition to the popular Economic Impact Payments (stimulus checks) the Plan included tax benefits designed specifically to help families, most notably expansions of the Child Tax Credit (CTC) and the Child and

If you face a tax audit and can legitimately point to the statute of limitations to head off trouble and expense, you should. Why should you have to prove you were entitled to a deduction — or find and produce receipts — if it’s too late for the government to make a claim? Rules are

You can stumble across some interesting things on the internet. I recently encountered a Twitter thread related to the OECD’s pillar 1 proposal, which provided thoughtful insights that are worth sharing. The thread examined how pillar 1 would affect various nations in terms of net revenue gains or losses. That’s no trivial matter. The OECD project envisions billions of dollars in

Today’s column addresses questions about filing first on a spouse’s benefits and then for retirement benefits, filing for retroactive retirement benefits after first taking spousal benefits and whether it’s worth taking the option at 70 to file six months retroactively. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president

Today’s column addresses questions about the rate of reduction for filing less than 12 months before full retirement age (FRA), eligibility for benefits based on an ex’s record and how and when delayed retirement credits (DRCs) are applied when filing after FRA. Larry Kotlikoff is a Professor of Economics at Boston University and the founder

When you set up an account to “transfer on death,” the assets will go directly to beneficiaries upon the owner’s death. While these assignments can help avoid probate, this account titling should still be carefully coordinated with the owner’s overall estate plan, especially for larger accounts and estates. While simply titling an account “Transfer on

It’s already too late to opt out of the first payment of the Advance Child Tax Credit (CTC). Taxpayers still wishing to unenroll need to do so at least three days before the first Thursday of the following month. For example, to unenroll for the August 13 payment a taxpayer must complete the unenrollment process

Amid a storm of global volatility, the past 18 months have created unprecedented challenges for multinationals. The economic and social disruption that began in the spring of 2020 has taken a traditionally difficult job of corporate forecasting and impairment and added dozens of new variables. And now, with the world about to take its first

A growing number of states are using a workaround to help their taxpayers avoid a Trump-era cap on a critical income tax break. Whether it will influence the ongoing push in Congress to repeal the cap altogether remains to be seen. Colorado recently became the 14th state to enact the new workaround, which allows (or

The Biden White House has been publicizing America’s new Juneteenth federal holiday, celebrating the end of Black slavery and the ongoing struggle for real Black independence and equality.  One of the White House’s announcements may have puzzled some people:  “Exclusionary Zoning:  Its Effect on Racial Discrimination in the Housing Market.” Zoning?  We might understand protecting and expanding voting rights,

Here are strategies for people aged 60 to 72 who have left the workforce. 1. Postpone Social Security. Social Security is a lifetime, inflation-adjusted, low-risk annuity. It’s valuable. When you collect before turning 70, you are in effect selling off a piece of that asset and probably getting a poor price for it. Do people

A global minimum corporation tax of at least 15% was one of the central pillars of this month’s G7 meeting in Cornwall, U.K. But a wider group of nations are refusing to support the proposal. Soliciting support for the G7’s “historic commitment” of a global minimum tax rate was never going to be easy. But