President Joe Biden introduced the much-anticipated American Jobs Plan, which outlines an approach to spend roughly $2.2 trillion on the nation’s infrastructure and other projects. As part of the legislative process, the Biden administration also laid out a proposal for paying for the domestic investment. The plan includes raising the corporate tax rate to 28%… Read More
Previously, the Internal Revenue Service (IRS) announced that the federal income tax filing due date for individuals for the 2020 tax year had been automatically extended from April 15, 2021, to May 17, 2021, we wrote about it here. However, the IRS has also settled on May 17, 2021 as the deadline for contributions to… Read More
The House of Representatives passed a $1.9 trillion relief package focused on economic relief following the COVID-19 pandemic. The bill was signed into law at the White House on last week. Beyond the much-discussed $1,400 stimulus checks, the relief bill offers many levels of stimulus, including funds for vaccine distribution, expansions of tax credits, expanded… Read More
Less than one month away from the traditional date the I.R.S. has delayed the deadline for filing and paying taxes. The new deadline is May 17, 2021. This delay follows the continued disruption from the COVID-19 pandemic and a late start to the tax-filing season. The I.R.S. delayed the start to February 12th. This follows… Read More
Will you pay higher taxes in retirement? Do you have a 401(k) or a traditional IRA? If so, you will receive income from both after age 72. However, if you have saved and invested much of your life, you may also end up retiring at a higher marginal tax rate than your current one. In… Read More
If you are retired and have reached your seventies, you may have the opportunity to draw a little less income from your retirement savings accounts in 2022. Next year, the Internal Revenue Service plans to update the life expectancy tables used for the calculation of required minimum distributions, or RMDs – the annual withdrawals you… Read More
Like everything else this past year, the COVID-19 pandemic has affected the tax season, but only slightly. Recently, the Internal Revenue Service (I.R.S.) announced that tax season will start a little later than usual. This year the I.R.S. will begin accepting and processing 2020 tax returns on Friday, February 12, 2021. In light of the… Read More
I recently wrote a blog about the enhanced RMD wavier that went into effect in June. You can find it here. Long story short, COVID-19 happened, and everything was instantly different. One of the actions that was taken by the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act was that certain retirement accounts… Read More
In March, the Coronavirus Aid, Relief, and Economic Security (CARES) Act became law. It was designed to help Americans impacted by the COVID-19 pandemic. The new law offered investors a financial break. One benefit of the CARES Act was it gave people the option to skip required minimum distributions (RMDs) from traditional Individual Retirement Accounts… Read More
The word “Audit” is a terrifying word that can strike fear into the hearts of taxpayers. However, the chances of an Internal Revenue Service audit aren’t that high. According to the I.R.S. 2018 Data Book, the I.R.S. only audited 0.59% of individual tax returns. You can visit IRS.gov and check out statistics or download the… Read More