Taxes

As of January 2023, the annual gift tax exclusion amount has increased to $17,000. That is the amount you can gift to any one person each year free of any tax implications. For years the amount was set at $10,000, but since 2002 it has been slowly increasing. Making annual exclusion gifts allows you to

Lisa Marie Presley, the only child of Elvis Presley, died unexpectedly on January 12, 2023, at age 54. Weeks later, questions have emerged about what will happen to her fortune following a legal challenge by her mother, Priscilla Presley. Elvis Presley’s Estate When Elvis Presley died in 1977, he left a will that created a

Recent rising interest rates and longer table life expectancies will shift values as between “income” and remainder interests in split interest trusts and charitable gift annuities, altering the tax incentives for these “planned” charitable gift vehicles. This article focuses specifically on the most commonly used “planned” giving vehicle, the charitable gift annuity. And for purposes

The idea of a wealth tax as a panacea for budgetary shortfalls at the federal and state levels has been around since at least the 1930s. Recently, using wealth as a source of tax revenues has heated up. Starting with the 2020 Presidential campaign, Senator Bernie Sanders, Senator Elizabeth Warren and others floated the idea

Every day, Social Security sends claw-back bills, many massive, to beneficiaries whom it mistakenly overpaid for years/decades. Social Security’s mistake is your mistake. Don’t take a penny before checking what they are going to send you is correct. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic

As the international tax community seeks revenue estimates from the OECD’s two-pillar tax reform project, some finance ministries are playing their cards close to the vest. In the United States, Republican lawmakers have repeatedly sought pillar 1 revenue information from the Treasury Department, only to be rebuffed each time. Why is Treasury reluctant to share

Thanks to some positive feedback on my recent piece, I have decided to dig deeper into the Fair Tax Act of 2023. The Reader’s Digest version of the act is that it eliminates federal corporate and individual income tax, payroll taxes that fund Social Security and Medicare, estate tax and gift tax. In their place

Today’s Social Security column addresses questions about when to switch from survivor’s benefits to retirement benefits, survivor’s benefits amounts after taking spousal benefits and whether claims of taking full retirement benefits at 55 are credible. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc.

The news is filled with stories about conflicts between taxpayers and tax collectors. Just a few weeks ago a New York jury convicted the Trump Organization of criminal fraud for a 15-year scheme to help top executives dodge taxes. While that case is a linguistic no-brainer, we often struggle to properly describe those who aggressively

Sometime during the next two years — we don’t yet know when — the House of Representatives will be hosting a public orgy. House Speaker Kevin McCarthy, R-Calif., has promised to hold a floor vote on the FairTax Act of 2023 (H.R. 25). The promise was one of multiple concessions McCarthy made to the Freedom

In the past, you needed to take required minimum distributions (RMDs) around age 70.5. This year RMDs can be taken at age 73. For younger folks reading this post, the RMD age will rise to 75 on Jan 1, 2033. The taxes could be onerous regardless of when you will need to begin taking your

What’s a paragraph worth in a thousand pages of Congressional legislation? Quite possibly, your ability to save thousands of dollars more in your company’s retirement plan. The news regarding SECURE 2.0 broke earlier this week from the National Association of Plan Advisors (NAPA) when a staffer at the American Retirement Association discovered a major glitch

Our economic attention currently is fixed on national policy, with growing risks from a debt limit deadlock and debates over inflation versus recession. But economic prosperity also depends on state, regional, and local policy, and now there’s a free guide to some of the best thinking in the field in the newest edition of the

Many people wait until near the end of the year to consider whether to convert a traditional IRA to a Roth IRA. But traditional IRA owners should be alert throughout the year for good opportunities to convert all or part of an IRA. Many variables determine whether a conversion will pay off or not, and

Inflation is on the mind of everyone these days, even the tax authorities. At the start of every year, the IRS and the Social Security Administration adjust key numbers in federal tax-law provisions for inflation. Some of these modifications are crucial for employees, their paychecks, and their planning. However, the US federal tax code is

Professor Diane Kemker of DePaul College of Law shares her argument for more coverage of the earned income tax credit in tax law casebooks to improve inclusivity. 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

Tax planning is a major part of owning and running a successful business. The meals and entertainment tax deductions have been a valuable way for many small business owners to reduce their tax liabilities each year. Sadly, the value of the meal deduction will be cut in half for 2023 from the 2022 deduction levels.

Many employers now offer Roth versions of their 401(k) plans. Though many people believe Roth IRAs and Roth 401(k)s (known formally as designated Roth 401(k) plans) are identical, there have been important differences between the two types of retirement plans. But a major difference was eliminated in late 2022 when the law known as SECURE

Instead of meeting the statutory deadline for proposed rules on the critical mineral and battery component requirements of section 30D, Treasury and the IRS released a white paper previewing their plans for the proposed guidance and indicating that they plan to issue that guidance by March. Although the white paper is only an outline of

Today’s Social Security column addresses questions about possible of effects of taking retirement benefits early on a spouse’s benefits, making sure benefits begin the month you turn 70 and accounting for continued income after filing. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc.