Taxes

The words “tax credits” with hundred dollar bills in background. getty Tax incentives, whether credits, cash grants, or some other form, are ultimately a matter of spending other people’s money — the taxpayers’. Each dollar a state spends on tax incentives means there is a dollar less in the coffer to provide needed services to

The S&P 500 hits a new all time intra-day high on August 18, but the volatile market took its toll … [+] on public pension plans this year. STRF/STAR MAX/IPx The S&P 500 hit a new all time intra-day high on Tuesday, highlighting a dramatic rebound — but the volatile market has left a scar

Economic Security Planning, Inc. Today’s column addresses questions about exactly when to file to get the full age 70 benefit rate, whether income from the current year is counted when calculating benefit amounts and ways to ensure larger benefits for a surviving spouse. Larry Kotlikoff is a Professor of Economics at Boston University and the

Most people these days are still reeling from the pandemic. The IRS and state governments are feeling the revenue pain too. California proposed to increase it’s already stratospheric top 13.3% tax rate, raising it to 16.8%. Not shocked yet? The newest tax some golden state legislators want to collect is a .4% wealth tax. The

getty After weeks of waiting, tax professionals and taxpayers finally got the word from the Internal Revenue Service (IRS): amended returns can now be electronically filed. In May, the IRS had given notice that later this summer, taxpayers would be able to file Form 1040-X, Amended U.S Individual Income Tax Return electronically. Before this year, you could only amend

getty The Fed is printing vast sums of money to lend to borrowers who may not be able to repay. This may lead to very high inflation, which would wipe out the real values of retirees’ fixed nominal pension or annuity payments. Taking out a larger mortgage can hedge this risk since inflation will water

getty Still missing your $500 per child stimulus check? You’re not the only one. In response to complaints that check recipients are still missing out, the Internal Revenue Service (IRS) is reopening the registration period for some folks who didn’t receive those $500 per child payments earlier this year.  In March of this year, the CARES Act was signed

Office vacancies are on the rise and hit nearly 16% this summer. In downtown Chicago, its 13.7%, … [+] while while the rate in the suburbs has topped 24%. (Photo by Scott Olson/Getty Images) Getty Images Cities and counties are predicting a drop in their property tax revenues over the next year, a phenomenon that’s

Economic Security Planning, Inc. Today’s column addresses questions about when earned delayed retirement credits (DRCs) are applied to retirement benefits, effects on benefits of selling a home, spousal benefits’ effects on retroactive retirement benefits and options after working while on disability. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and

2020 has already seen a big uptick in the number of Americans giving up their citizenship. So says the U.S. government’s 2020 second quarter list of published expatriates, the second highest number ever. Every three months, the U.S. Treasury Department publishes the names of individuals who renounced their U.S. citizenship or handed in a long-term green card. For

getty Some TurboTax users are reporting that they have yet to receive a stimulus check due to a single checked box in the popular tax preparation software. The checked box asks if the taxpayer’s spouse can be claimed as a dependent by someone else. The issue first surfaced in a TurboTax support forum on April 24th. The

getty Close study of the Tax Cuts and Jobs Act appeared to give a fantastic break to businesses with less than $25 million in gross receipts. It appeared that they could change accounting methods and write off their inventories. Lucien Gauthier of the Boston Tax Institute promoted the concept, as I explained in Tax Cut

getty If you have an uncashed tax check at the Internal Revenue Service (IRS), you’re not alone. Scores of taxpayers and tax professionals have been reaching out about uncashed checks. Making matters worse, the IRS has been sending out underpayment or failure-to-pay notices for those payments. First, you should know that this is clearly a

Congress spending and wasting your money. getty The coronavirus pandemic pushed the government into the proverbial corner, prompting it to borrow heavily from the future to ward off a serious threat today. Without this intervention, the U.S. economy would be in a much worse recession or possibly even a depression. Even though borrowing excessively may

Rows of coin stacks with toy blocks among the receipts symbolizing value added tax getty This article is based on a reader’s suggestion: Design a VAT regime to help the U.S. fisc recover from the COVID-19 pandemic. Challenge accepted. The concept isn’t as outlandish as it first sounds. A review of U.S. history shows that

WASHINGTON, DC – In late April, the IRS called about 10,000 volunteer employees back to work to … [+] start catching up on taxpayer correspondence and other work. Photo by Chip Somodevilla Getty Images Earlier this week I received nine notices from IRS for clients who had filed their Forms 1041 in June with balances

Palestinian fighters with Ezz-Al Din Al-Qassam Brigades, the armed wing of the Hamas movement, rest … [+] on a sidewalk during a patrol in Khan Yunis in the southern Gaza Strip on January 26, 2020. (Photo by SAID KHATIB / AFP) (Photo by SAID KHATIB/AFP via Getty Images) AFP via Getty Images The Justice Department has

Economic Security Planning, Inc. Today’s column addresses questions about when and how spousal benefits can become available, when survivor benefits are available and how the WEP and GPO can affect their availability and potential effects of remarriage on benefits based on an ex’s record. Larry Kotlikoff is a Professor of Economics at Boston University and

For those out of work and looking for new jobs, the federal government is trying to keep the special … [+] pandemic unemployment benefits coming. getty The special pandemic unemployment benefits under the CARES Act, which provided $600 per week, recently expired. In an executive order on August 8, President Trump appeared to continue these

WASHINGTON, DC – AUGUST 10: U.S. Treasury Secretary Steven Mnuchin speaks as White House Budget … [+] Director Russell Vought looks on during a news conference at the James Brady Press Briefing Room of the White House August 10, 2020 in Washington, DC. U.S. President Donald Trump was briefly evacuated from the room due to