Another good summary of the tax law changes in that bill, esp for IRAs and retirement plans.
The ignorance is mindnumbing
But a structural discrepancy in the U.S. tax system between the way workers and business owners are taxed means that this new money for law enforcement might not be as effective as more legal reforms.
“Under the current system, American workers pay virtually all their tax bills while many top earners avoid paying billions in the taxes they owe by exploiting the system,” Treasury Secretary Janet Yellen said in 2021.
The *top earners" pay tons of income tax. Instead, the outrage seems to be more over the top net worth individuals, with complaints about how they aren’t paying income tax on money they already have. It’s something that is equally true for every taxpayer, there is no discrepancy.
It’s rather funny how they so casually mention “tens of millions of business losses” as if that’s a good thing and a net positive. Losses are losses - a $1 loss is a lot more than the 40-cent tax reduction from the subsequent deduction. Being able to deduct business losses only make those losses hurt a little bit less.
Can’t discount government responses to COVID and crime spikes for many of the moves in most recent years. It’s not like New Yorkers and Californians just discovered that Florida and Texas had lower taxes and cost of living - that’s been true since forever. For most folks, those reasons alone weren’t enough to move. But when the actual enjoyment of living in those places starts to significantly deteriorate, the lower taxes and cost of living become the cherry on top, not the main reason. It doesn’t help when the governor of your state actually suggests you leave as well.
Good overview of inflation adjusted 2023 limits to IRAs, gifting, etc, as well as tax brackets.
A good article on IRAs left to trusts, rather than directly to beneficiaries, and some of the planning and pitfalls of that. Briefly, the trust tax brackets are worse and the DNI deduction to the trust for making distributions to the beneficiaries often doesn’t apply.
It’s baaaack …
Treasury Direct tax forms
For those of you who are growing older or might become disabled, the complication of treasurydirect is a real consideration. Here’s a long thread on the bogleheads discussing it
I received an email today from Square, regarding an organization’s account. It reminds us that we can get 2022 transaction totals online, even though we did not meet the requirements to have a 1099-k issued. We cleared $600 in transactions, so Square is apparently sticking with the old 200/$20k threshold for 2022.
Agreed. Allf the other stuff I have I get paper confirmations on purpose for survivors. TSP and TD are the only ones that don’t do paper confirmations. I printed out the gift box but would like yearly updates. Is there a setting online to request.
Also hate their password page
That being said this was a good reminder to do my 2023 purchases. Series I Savings Bond 01-28-2022 almost a year to date!
People routinely think deductions are worth more than they are $ wise. Something about sticking it to the man. Oh I get a tax break mentality. eg. My sister bought a huge house since she got to deduct mortgage
Mortgage interest, not mortgage. I hope that was a long time ago, because the TCJA doubled the standard deduction in 2018, making the mortgage interest deduction worth significantly less, if anything at all.
SALT limit + low mortgage rate + std deduction increase all nearly ended itemizing for the “middle class”. This may change if mortgage rates stay in that 5+% range. I’m paying double the interest on my mortgage but I can deduct it now, lol
Sadly, there are way too many people (hopefully none here) who dont get the sarcasm and do consider this to be a good thing.