Consider the fact that Massachusetts has the second highest average annual wage in the US, coming in at $93,675 vs the United States’ average of $69,392, this will affect more people than you might think₁.
The 2022 midterm elections resulted in a change to local taxes that penalize those high earners with a so-called Massachusetts “millionaire tax” that state voters just approved by a margin of about 52% to 48%.
The IRS has announced that it is adjusting a number of current rules to help us better weather the impact of the current inflation, and this will mean some real tax savings for some taxpayers next year.
It’s been said, “A penny found is better than a penny earned – because a penny earned is taxed”. I can’t argue with that. But how about if it’s in the form of a tax refund?
The IRS views gifts and loans differently for tax and gifting purposes and you need to understand the difference before writing that check.
Potentially forgiving student loans is a controversial topic these days. I’ve weighed in before on the current administration’s proposals and ideas. There are additional financial consequences to this proposal for the borrowers, too.
401k or IRA funds are what we call “tax-deferred”, not “tax-free”. IRS tax laws require funds invested in tax-deferred plans must start to be distributed by age 72, and taxable at your current tax rate when taken.
We’re seeing some alarming trends regarding retiree spending these days and this has the potential to derail your ability to sustain your retirement lifestyle.
There are specific rules that you need to follow depending on what IRA type you inherit and what type of beneficiary you are. Your distribution options will vary as well.
This week I dig into some of the key points of the Biden tax proposal to help you better understand if – or how – you might be affected.