In 2020, the Secure Act gave non-spouse heirs 10 years to withdraw funds from inherited IRAs, instead of the previous lifetime withdrawals. However, there are no penalties for 2024 missed withdrawals.
Before withdrawing funds, consider your financial situation and other factors that may impact your tax liability, such as your retirement date and potential changes in tax brackets after 2025.
President Biden and Vice President Harris released their tax returns for 2023. Biden's income rose slightly while Harris's income decreased slightly. Both couples paid federal income taxes and incurred small penalties for underpaying estimated taxes. The returns highlight the complexities of the tax code, including handling multiple income sources and managing tax liabilities. Tax experts advise higher earners with complex financial situations to consider working with professionals to optimize their tax strategies.
Max Gallo, a young actor in New York City, lives frugally despite earning over $117,000 in 2023. He prioritizes experiences and doesn't feel stressed financially. While confident in his acting career, he acknowledges the need for stability and plans to supplement his income with part-time jobs. Gallo believes in balancing financial responsibility with creative fulfillment and sees being an artist as a way of life.
Introducing the new TAXX ETF, an actively managed municipal bond fund. It aims to provide income-generating opportunities in higher interest rate environments. TAXX holds a mix of municipal, corporate, and securitized bonds to enhance after-tax returns. It currently offers a tax-equivalent yield of approximately 6%, making it attractive for tax-conscious investors.
The IRS' Direct File program, which offers free tax filing, is now available in 12 pilot states. An estimated 19 million taxpayers are eligible this season, with filing limited to simple tax situations like W-2 income and standard deductions. While Direct File is only available in certain states, most taxpayers can use IRS Free File, which has even wider eligibility criteria and allows for both electronic filings and printable forms.
In the US, gig work is being reclassified as second jobs, impacting many. Businesses may face increased costs, leading to potential job losses and reduced flexibility for workers. The change aims to provide gig workers with employee protections but could result in financial strains, reduced access to gig work, and ripple effects on industries and the economy. It emphasizes the need for businesses to comply and individuals to adjust their financial strategies in this shifting landscape.
