Tag: taxes

The Congressional Budget Office (CBO) has published an interesting report titled, The Distribution of Major Tax Expenditures in the Individual Income Tax System, that shows how 10 of the largest tax breaks, credits and deductions are distributed across household with different income levels. These tax breaks (or tax expenditures as…

[Updated for 2013-2014 tax filing season] Thanks to the so called fiscal cliff deal reached last year there were a number of impacts to taxes in 2013 which you need to be aware of when filing your 2014 taxes. Changes were in the form of updated federal tax rates, new…

Under the latest Biden tax proposals, there is talk of restoring the the tax benefit limitation of itemized deductions to 28 percent of value for those earning more than $400,000. The proposal would also restores the Pease limitation on itemized deductions for taxable incomes above $400,000 that is discussed below…

[Updated Jan 2013] Congress and the Obama administration have reached an agreement that will avert a significant portion of the fiscal cliff and its associated impacts on your pay check and taxes next year. The passed legislation would increase tax revenue by $620 billion and only cut spending by $15 billion because the planned…

The Washington Post had two graphics that neatly summarize the impacts from the fiscal cliff. This is the number one topic in the world of finance and almost all Americans will be impacted by the potential fallout in some fashion. My opinion is that Congressional Republicans and the Obama administration will reach some form…

A secret recording from a closed-door fund raiser had Mitt Romney saying, "47 percent of Americans believe that they are victims...I'll never convince them they should take personal responsibility and care for their lives...My job is not to worry about [votes from] those people. These are people who pay no income tax.…

Ever wondered where all our federal tax dollars go? I did and a recent report from the center on budget priorities and policies (CBPP) provided a very nice graphic on how federal tax dollars are distributed. With all the political rhetoric that abounds around the national debt, excessive federal spending…

An interesting study by the Congressional Budget Office (CBO) provided some very telling graphics around income distribution changes relative to which groups paid the most in taxes. Amazing how politicians can both take the same data and spin it in different ways. The first graphic shows the cumulative growth in…

[2013 Update] With a deal to avert the fiscal cliff reached and legislated under the American Taxpayer Relief Act (ATRA) of 2012, a couple of significant employer sponsored retirement plan features have reappeared with some modifications. This includes the Roth 401(k) conversion and Charitable IRA contributions. You can read more…

Living abroad? Great! But remember, your tax obligations don't vanish. Uncle Sam still wants his cut, regardless of where you earn your income. This post outlines the key changes the IRS has made for reporting foreign income, helping you avoid those "pretty stiff penalties" they mentioned. Reporting Your Worldwide Income:…

[Updated with 2013 IRS inflation adjusted tax brackets and fiscal cliff changes] Congress and the Obama administration's fiscal cliff deal (ATRA act) means that 2013 federal tax rates will remain fixed for nearly 99% of the population. Only those earning above $450,000/$400,000 (married/single) AGI will have a higher federal marginal tax rate in…

GOP presidential candidate Mitt Romney and his wife paid a 14% effective income tax rate in 2010 on nearly $22 million of income. Given the marginal federal income tax rate for anyone making over $35,350 (single) or $70,700 (married) is higher than 15%, it is pretty clear that the Romney's…

Have you considered using your Roth IRA as an emergency fund or as a source for getting some cash to cover an unexpected expense? In this era of tight budgets and volatile stock markets, a lot of people are finding it difficult (if not impossible), to save for retirement and…