Taxes

Despite experiencing record levels of output and job growth during the first year of the Biden presidency, rising prices are casting a shadow over the economy. Inflation over the last 12 months was higher than at any point in the last 40 years and has outstripped wage gains for many workers across the income distribution.

Today’s Social Security column addresses questions about how retirement benefits accrue both cost of living adjustments and delayed retirement credits, the ability to suspend a retirement benefit and potential effects of having no income before filing. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning,

Now that the Biden administration has resurrected decades-old Superfund excise taxes on dozens of chemicals and hazardous substances, the countdown is on for the IRS to release highly anticipated rules before the taxes start July 1. In the meantime, chemicals industry groups are lobbying for the agency to ease taxpayers into the new regime. Some,

Today’s Social Security column addresses questions about the ways delaying filing until 70 can increase your retirement benefit rate, effects of early retirement benefits on later spousal benefits and when the WEP does and does not apply. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security

Sen. Rick Scott (R-FL), who chairs the National Republican Senatorial Committee, has proposed an 11-point plan to “Rescue America” including this: “All Americans should pay some income tax to have skin in the game, even if a small amount. Currently over half of Americans pay no income tax.” The Tax Policy Center estimates that achieving

Over the next twenty-five years, Americans are expected to inherit an astonishing $72.6 trillion. Yes, that is TRILLION with a T. Many of these inheritances will be delivered to beneficiaries of IRAs, 401(k) or other retirement accounts. How you handle your inherited IRA can greatly increase or decrease the taxes due and, ultimately, the value of

Social Security is once again sending out clearly false benefit statements. If the code generating the statements is generating actual benefit payments, millions of Americans may be receiving too little or too much in Social Security benefit payments. If you are receiving too much, you can expect to be billed for all past overpayments years

Pascal Saint-Amans discusses his decadelong tenure as the director of the OECD Centre for Tax Policy and Administration and what’s to come in the future. This transcript has been edited for length and clarity. David D. Stewart: Welcome to the podcast. I’m David Stewart, editor in chief of Tax Notes Today International. This week: a busy decade.

Denny and Marie run a successful business manufacturing and retailing aluminum sliders. After the hassles of the pandemic – supply disruptions, PPP loans and employee turnover – they’re ready to retire. As they start to look at the prospect of endless weekends, they’re envious of their friends who are retiring as employees. These friends have

Surprise! (Or maybe not.) Tax-return reporting has changed yet again for the 2022 tax season. If you had income in 2021 from equity compensation, whether from stock option exercises, restricted stock/RSU vesting, or sales of company stock, this article explains what you need to know about IRS tax returns in the 2022 tax season. The

Today’s Social Security column addresses questions about taking Social Security benefits while earning income before full retirement age, potential effects of foreign pensions on US Social Security benefits and determining whether an ex has passed away. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning,

The value of interstate tax competition, that is, the use of tax incentives, has always been a point of contention among economists and government officials. Economist Milton Friedman, a free-market advocate who propounded that the government’s appetite for revenue was insatiable and will unproductively consume whatever revenue it can grab, believed that any means — like

1962. It was the only year in which JFK was president for the whole entire year. World events impinged on my family as my big brother onboard an aircraft carrier chasing Soviet submarines when not recovering Mercury astronauts had his four year enlistment extended to five. Somehow bright fourth grader that I was, I missed the

It is hard to believe, but tax season 2022 has already begun, meaning it is time to get ready to file your 2021 taxes. If you are self-employed or even have a side hustle, you may still be able to open a Simplified Employee Pension Plan (SEP-IRA) to lower your 2021 taxes. Contributions to a

The preamble to final regs (T.D. 9959) issued January 4 pulls no punches in denying U.S. foreign tax credits for a foreign country’s destination-based taxes imposed on U.S. taxpayers. The new regs finalize proposed regs published in November 2020 (REG-101657-20) that included rules for determining whether a foreign tax is eligible for an FTC under

President Biden’s multitrillion-dollar Build Back Better bill may have been beaten back, but its economy-killing tax increases could still pass. Senator Joe Manchin (D–West Virginia), who played the key role in killing Biden’s spending extravaganza, is supporting higher taxes on businesses and capital gains. His rationale: More taxes will help fight inflation. Huh? This episode

The Justice Department has created a new role: Director of National Cryptocurrency Enforcement Team. Today it announced that Eun Young Choi will serve as the first Director in that role. The National Cryptocurrency Enforcement Team, or NCET, “was established to ensure the department meets the challenge posed by the criminal misuse of cryptocurrencies and digital

Today’s Social Security column addresses questions about whether early retirement benefits would also require early survivor’s benefits, when it might be best to file for divorced spousal benefits and spousal benefits for people born in 1954 and later. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic

Since 2018, it’s been tougher to deduct legal fees, and some plaintiffs in contingent fee cases are taxed on their gross recoveries, not net after legal fees. Some call it a new tax on legal settlements. Being creative is needed in this new age, since sometimes the rules seem to say you shouldn’t be deducting

Remember the old marketing cliche: “I don’t care what you say about me as long as you spell my name right.” In the Internet age, it seems to apply more than ever—at least for many politicians, athletes, and celebrities. But not for the Internal Revenue Service. Yet here we are in the midst of tax