It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.
By the end of the year,...
It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.
By the end of the year,...
The 2017 tax cuts may not have been as beneficial for middle class Americans as advertised. Many provisions, including increased standard deductions and favorable tax brackets, are set to expire unless Congress extends them. Other hidden costs, such as increased property taxes and excise taxes, can offset some of the savings. Consider consulting a tax advisor for personalized advice on how to minimize tax exposure given these complexities.
The tax filing deadline for most Americans is April 15th. Those who haven't filed can still apply for an extension until October 15th, but taxes owed must be paid by April 15th. Many can file taxes for free through IRS Free File or Direct File. If someone owes a balance but doesn't file, they can expect penalties and interest. The IRS also suggests filing electronically for a faster refund.
If you can't pay your taxes in full by April 15th, you should still file your return and pay what you can. The IRS offers payment plans that allow you to spread out the payments over time, reducing the late-payment penalty by half. These plans can be applied for online, by phone, or by mail, and can take up to 180 days for short-term plans and up to 72 months for long-term plans.
President Biden's new plan will forgive up to $20,000 in student loans for many borrowers, including those who owe more than they originally borrowed, low-income earners, and those who have not successfully applied for other relief programs. The plan also cancels loans for borrowers whose degrees are from "low-value" institutions or who are experiencing financial hardship.
Did you know you can contribute to an IRA up to April 15th and potentially get a tax deduction? The contribution limit for 2023 is $6,500 (plus $1,000 if you're 50 or older). The catch is that you may not qualify for the deduction if you have a workplace retirement plan and your income is too high. If you're eligible, weigh your goals and consider your immediate expenses before contributing.
A recent survey reveals widespread financial stress among adults in various countries. Half of respondents in the U.S., Australia, Spain, and Mexico reported feeling "stressed or somewhat stressed" about money. A significant portion of middle-class individuals described themselves as "living paycheck to paycheck." Inflation, lack of savings, and economic instability were cited as major sources of concern. Notably, many adults felt they were worse off financially than their parents and pessimistic about their children's financial prospects.
A lucky New Jersey resident has won the $1.128 billion Mega Millions jackpot. However, they will face significant tax deductions. The federal government will automatically withhold 24%, while New Jersey will take another 8%. Depending on the payment option the winner chooses, they could owe up to an additional 13% in federal taxes and 10.75% in state taxes. Overall, the winner can expect to lose nearly half of their winnings to taxes.
The Mega Millions jackpot has reached $1.1 billion, but the winner could face challenges if they aren't prepared. They must choose between a lump sum or annuity payout, both of which are subject to taxes. Additionally, claiming the prize via a trust or LLC and creating a written agreement when pooling money are important considerations to protect the winner's privacy and avoid legal disputes.
Republicans want to raise the Social Security retirement age and reduce benefits for high-income earners, while Democrats oppose benefit cuts and propose raising taxes on the wealthy to enhance benefits. Both parties aim to address the programs' financial challenges, though their proposals differ significantly.
The IRS has already issued over 43 million tax refunds totaling $135.3 billion, with an average refund of $3,145. However, this average could change as more returns are filed. The IRS encourages taxpayers to check their refund status using the "Where's My Refund?" tool online. Despite the early refunds, only about half of the expected returns have been received, and filing for an extension can push the deadline to October 15th.
When a spouse passes away, the surviving partner may face higher taxes when filing as a single filer. To minimize this "survivor's penalty," consider Roth IRA conversions, reviewing account ownership, and designating beneficiaries to defer taxes. It's crucial to plan ahead to mitigate these financial surprises, especially for older women who often bear the brunt of this tax impact after losing their spouse.
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.
