#File Federal Zero Income Return

[dontmeantobepoliticalbut]

The amount of income, deductions and taxes paid by or refunded to former President Donald Trump while serving in the White House was detailed in a new report released Tuesday night.

The report reveals that Trump on his federal tax returns declared negative income in 2015, 2016, 2017 and 2020, and that he paid a total of $1,500 in income taxes for the years 2016 and 2017.

On their 2020 income tax returns, Trump and his wife Melania paid no federal income taxes and claimed a refund of $5.47 million, according to the report by the staff of the Joint Committee on Taxation.

The report was posted online shortly after the Ways and Means Committee voted to make public redacted versions of Trump’s full income tax returns, and those of eight related business entities for the tax years 2015 through 2020.

Those full returns are expected to be released in the coming days.

A separate report released by the Ways and Means Committee revealed that the IRS had started an audit of just one of Trump’s tax returns while he was serving as President despite an internal policy mandating that sitting presidents have their returns audited annually.

The 39-page report by the Joint Committee on Taxation staff gives a breakdown of the highlights of Trump’s joint tax filings with Melania during his time in office, and the two years he first ran for President.

The report identifies different areas that the staff thought warranted further examination, such as documentation of nearly $506,000 in charitable donations claimed by the Trumps in 2019.

Highlights of the report include:

• On their 2015 federal return, Trump and his wife declared negative income of $31.7 million, with taxable income of $0. The couple paid federal income taxes of $641,931.

• The 2016 return declared negative income of $31.2 million, with zero dollars of taxable income. The Trumps paid $750 in taxes.

• The 2017 return declared negative income $12.8 million, with $0 in taxable income. The couple paid $750 in taxes.

• The 2018 return declared total income of $24.4 million, with taxable income of $22.9 million. The Trumps paid $999,466 in federal income taxes.

• In 2019, the Trumps declared $4.44 million in total income, and $2.97 million in taxable income. They paid $133,445 in taxes.

• The 2020 return shows negative income of $4.69 million, with zero dollars in taxable income. The tax paid by the Trumps was $0 and they claimed a REFUND of $5.47 million.

Read the report on Trump’s annual tax returns here.

[mariacallous]

Moments before the kickoff of the 118th United States Congress in January, incoming GOP leaders ripped down Nancy Pelosi’s post-insurrection magnetometers, which had stopped at least one Republican, Representative Andy Harris of Maryland, from entering the House floor with a handgun. The first meeting of the House Natural Resources Committee, held on February 1, devolved into partisan vitriol as Republicans reversed an explicit ban on members bringing firearms into their hearings. Soon, AR-15 pins started popping up on rank-and-file lapels. Then, two weeks later, a bill was introduced to make the mass-shooter-approved AR-15 the “national gun of the United States.”

This may be Joe Biden’s Washington, but the US Capitol appears to be, once again, under the firm grip of the gun lobby. With repeated threats of federal government defaults and shutdowns consuming Washington throughout 2023, little attention has been paid to specific agency-by-agency spending proposals, including a House Republican proposal to zero out funding for gun violence research at the Centers for Disease Control and Prevention (CDC). That effort, part of a House appropriations bill, was postponed after Congress passed a short-term extension to fund the federal government into early next year. But that doesn't mean it won't return then, with powerful Republican lawmakers painting the CDC's research as overtly partisan.

“I think it may have a political component, and that's my concern,” Representative Robert Aderholt, an Alabama Republican, tells WIRED. He’s known as a cardinal on Capitol Hill because he chairs the Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies, which is tasked with producing the nation’s largest domestic funding measure, including control of the CDC’s budget, each year.

The powerful appropriator isn’t thoroughly versed in the gun violence research his subcommittee is trying to defund, but Aderholt is skeptical anyway. “If it were just honest, innocent research, then I wouldn’t have a problem,” Aderholt says. “But I have some concerns with the way that it’s being handled under this administration.”

Thing is, no one really knows what story the CDC research will tell. It’s only been around for three years after nearly a quarter-century of congressional prohibition under the 1996 Dickey Amendment, which essentially barred the CDC from examining the roots of the uniquely American scourge of gun violence.

“This is about public health,” Rosa DeLauro, the top Democrat on the labor committee, tells WIRED. “We haven’t had it for 20 years. Think about all the research that was done about seatbelts and prevention. So I think about what’s happening with the uptick in gun violence, which is unbelievable … we need to do the research to help us be able to prevent that.”

In 2018, lawmakers upended the Dickey Amendment, explicitly clarifying that the will of Congress is for the CDC to research the contemporary weaponization of America. But federal dollars—which, contrary to GOP concerns, are still strictly forbidden from being used to promote gun control—didn’t start flowing to researchers until 2021. Democrats have pushed for $50 million annually to research America’s second-leading cause of death for people 18 years old or younger. (The first is motor vehicle accidents, which Congress devoted $109.7 million to research in the 2022 fiscal year.) But for the past three years, they’ve only been able to squeeze $25 million a year—split between the CDC and National Institutes of Health—out of Republican senators.

With more than 39,000 gun-related deaths so far in 2023, according to the Gun Violence Archive, America’s on pace to endure another record-setting amount of carnage by year’s end, which you wouldn’t know from the giddily gun-friendly mood on the House side of the Capitol. “I think the Republicans are just nuts on this, you know, the extremes,” Mike Thompson, a Democratic representative from California, tells WIRED. Nuts or not, Republicans control the House.

Even through the tears stemming from America’s recent uptick in gun violence—including homicides, suicides, and mass shootings—the past three years have been an exciting time for researchers in this space, because when the federal government leads, university research follows. The two-plus decades drought has rippled through academia.

“People weren't going into this field because you couldn't make a career in it,” Andrew Morral, who runs RAND Corporation’s Gun Policy in America Initiative, tells WIRED. “It’s the kind of thing where it takes a fair amount of research before you start getting believable findings. I mean, you can have a study or two that show something, but in social science, it's very hard for one or two studies to persuade anyone.”

Morral is also director of the National Collaborative on Gun Violence Research, which is philanthropically endowed with $21 million earmarked for firearm violence prevention research. A few years back, he led a conference with “30 to 100 people.” At the start of the month, when they held their annual meeting in Chicago, there were 750 attendees, including some 300 presenters whose studies ranged from how “guns provide access to sources of life meaning” for some Floridians to whether there’s any correlation between heat waves and shootings.

“A lot of new questions are being asked and new ways of looking at things—this just wasn't possible five years ago,” Morral says. “There [are] people coming into the field now, and that's what the money is doing. It's making it possible to get this field launched. There's a lot of low-hanging fruit here, but it's going to take a lot of research to start getting persuasive findings and it's starting to happen.”

In the wake of horrific mass shootings at Robb Elementary School in Uvalde, Texas, and a grocery store in a predominantly Black neighborhood of Buffalo, New York, last year, before the GOP recaptured the House, Congress passed the sweeping Bipartisan Safer Communities Act (BSCA), aimed at improving the nation’s background check system, stymieing gun traffickers, protecting domestic violence survivors, and enhancing mental health services in local communities and schools from coast to coast.

The measure includes billions for mental health, $250 million for community violence intervention programs, and $300 million for violence prevention in the nation’s schools. It also recognizes the federal deficiency in school safety research by creating a Federal School Safety Clearinghouse, envisioned as a repository for the best “evidence-based” research for keeping violence off American school grounds.

That best-practices clearinghouse for schools was a GOP-sponsored provision that made it into the BSCA, but, as WIRED reported last summer, studying gun violence wasn’t a part of negotiations on the measure aimed at curbing gun violence. This latest effort by House Republicans to effectively bar the CDC from researching gun violence has social scientists worried about the real-life consequences of turning off the federal funding tap again. The two Senate Republicans who negotiated the BSCA aren’t worried.

“People misuse research every day,” Senator Thom Tillis, a North Carolina Republican, tells WIRED. The other Republican who had a seat at the head table for last summer’s gun negotiations is one of minority leader Mitch McConnell’s top lieutenants, John Cornyn of Texas—a leading contender for replacing the ailing GOP leader in the Senate—who shrugs off CDC gun violence research. “I don't think there's any shortage of research in that area,” Cornyn tells WIRED. But he bifurcates gun violence research from gun violence prevention. “We haven't been able to figure out how to solve all the crimes. Basically, we've tried to deter them, we've tried to investigate and prosecute them, but we haven't been able to figure out how to prevent them. So that's the basic problem, I think.”

Democrats agree. They also say the reason for that “basic problem” is clear: The CDC—through the chilling effect the federal prohibition had on academia over 24 years—has failed to foster a robust research environment to accompany America’s robust gun culture. But Democrats aren’t looking to pass reforms this Congress. Sure, they want to. But the House is barely performing at its normal rate of functional-dysfunctionality these days (just ask newly-former House speaker Kevin McCarthy). Senate Democrats are willing to have a gun violence prevention debate, but as of now, many say there’s no reason to try and debate House Republicans.

“They're not writing bills that are designed to pass the Senate in order to get signed by the president. They're literally throwing red meat to the fringe on every conceivable issue. That's just not serious,” Senator Chris Murphy, the Connecticut Democrat who was at the center of last summer’s gun reform negotiations, tells WIRED. “At some point, they're going to have to figure out how to pass a bill with us, but they haven't reached that space yet.”

[longwindedbore]

When i’ve bought or sold a home the mortgage companies have always looked at three documents:

A. The appraisal,

B. The seller’s disclosure statement,

C. The buyer’s statement of financial condition

Any factual misstatements or material omissions on B or C can result in a conviction for fraud for the signee(s)

https://www.federalcriminaldefenseadvocates.com/mortgage-fraud

[From the Article]

Some common types of mortgage fraud are: [I’ve added the numbering]

Intentionally providing false financial statements;

lying about income (income fraud);

providing false tax returns;

overvaluing a property's value (appraisal fraud);

providing fake employment verification;

manipulated credit scores/reports;

stating that the property acquired is for residential purposes but in actuality is for investment purposes which gives lower interest rates (occupancy fraud)…

In United States federal courts, mortgage fraud is prosecuted as wire fraud, real estate fraud, bank fraud, mail fraud and money laundering, and you may face a maximum of 30 years in prison and up to a $1 million fine.

•••••••••••••••••••••••••••••••••

Donald Trump, his sons, his companies and other of his executives have been found liable for fraud in the on going civil trial.

Just as you or I would be if we did ANY of the above.

The State had demonstrated that the Trump Organization committed repeatedly 1, 2, 4, 6, 7 plus others not listed above

Judge Engoron’s ruling on the State’s Motion for Summary Judgment noted that the State compared documents in the Trump Organizations records which at odds with the Statements of Financial Conditions subpoenaed from banks which had provided Trump loans.

Donald Trump’s attorneys filed three motions against the State; were rejected three times by the Judge; then appealed three times and were rejected three times.

•••••••••••••••••••••••••••••

Lead attorney Kise has argued before the US Supreme Court and won his cases

If he had any any any other legal arguments howler specious or nebulous for an appeals court he would have made that appeal before the train wreck of testimony by Trump and Sons.

Undoubtedly Trump, who considered himself smarter than the Judge, opposing counsel, and his own $3million retainer attorney, paid close to ZERO attention to Kise’s attempt to prep him as a witness.

[lutz-tax-services]

Deducting Casualty Losses

Losing personal property to disaster or theft can be traumatic, especially if it is a home, vehicle, or prized family heirloom. Even though in some cases replacement of lost property is impossible, the Internal Revenue Service provides a means by which theft or disaster-related property loss (also known as "casualty loss") can be claimed and deducted from annual taxes to help lessen the blow. A tax accountant can be hired to help navigate some of the complex rules that apply to these situations. Casualty losses relating to a home, household items, and vehicles can be claimed on a federal income tax return if the loss is caused by a national disaster as officially declared by the President. Casualty losses covered by insurance cannot be declared unless a timely claim for reimbursement is filed and the claimed loss is reduced by the amount of reimbursement (or expected reimbursement). Casualty losses can result from any sudden or catastrophic event, such as a hurricane, flood, volcanic eruption, fire, etc. Normal wear and tear does not qualify as a casualty loss. Casualty losses fall under one of three federally-declared disaster categories: federal losses, disaster losses and qualified disaster losses. The requirements for each loss type vary and can be found on the IRS website by searching "casualty loss." If the property in question is for personal use or isn't completely destroyed, the loss that can be claimed is the lesser of either the material change to the recorded initial cost of the property (also known as the "adjusted basis"), or the decrease in fair market value of the property as a result of the casualty. If the property is income-producing and is completely destroyed, the amount of the loss is the adjusted basis. Consult with a tax accountant to help with these calculations. Theft-related loss can be declared so long as the taking of the property in question is illegal in the state in which it occurred. The amount of theft loss that can be declared is the adjusted basis of the stolen property since the fair market value of property after the theft is zero. There are special provisions made by the IRS for Ponzi scheme-related theft losses; more information can be found on its website. Both theft and disaster-related losses must be reduced by any salvage value and by any insurance or other reimbursement received or expected. The adjusted basis of property is usually its cost increased by improvements or decreased by depreciation. Fair market value can be assessed by appraisal. While it is common for casualty losses to result in tax deductions, if reimbursements are greater than the cost or adjusted basis of the property, a capital gain must be reported on the same tax year's income, unless eligible for postponement or the gain does not exceed total loss for all casualties realized in the same tax year. Casualty and theft losses must be claimed as itemized deductions on Schedule A (Form 1040). For personal-use property, $100 must be subtracted from each casualty or theft that occurred during the year after salvage, insurance or other reimbursement value has been subtracted. Those amounts must be summed, and from that, 10% of the claimant's adjusted gross income must be subtracted to calculate the allowable losses for the year. This process can be simplified by an experienced tax accountant. Qualified disaster loss may be deducted without itemization, and the net loss does not need to exceed the previously described 10% of the claimant's adjusted gross income to qualify to be deducted. However, in this case, each loss must be reduced by $500 after salvage or reimbursement value. Casualty and theft losses must be reported on Form 4684, "Casualties and Thefts PDF." Casualty losses can be deducted in the year the loss is realized. Importantly, if there is a reasonable prospect of recovering the value of the loss via reimbursement, there is no loss in the eyes of the IRS. For casualty losses resulting from a federally declared disaster occurring where public or individual assistance was provided, the claimant can choose to treat the loss as having occurred in the year immediately preceding the tax year in which the loss was sustained. In this case, the loss can be deducted from the previous tax year's return. Theft-related loss can be deducted in the year it is discovered unless there exists a reasonable prospect of recovery via reimbursement. If so, no deduction is available until the taxable year in which it can be determined whether such reimbursement will be received.

[loudtravelerlight]

Understanding Tax Relief in the United States: Navigating Options and Opportunities

Introduction

Tax relief is a critical financial lifeline for many Americans seeking to reduce their tax burdens and manage their financial obligations. Whether facing a hefty tax bill or looking for ways to optimize tax payments, understanding the various tax relief options available can make a significant difference. This article explores the concept of tax relief in the United States, including its types, benefits, and how individuals and businesses can take advantage of these opportunities.

What is tax relief US?

Tax relief refers to various programs and incentives designed to help taxpayers reduce their tax liabilities. These measures are implemented by the federal government, state governments, and sometimes local authorities. Tax relief can come in many forms, including deductions, credits, exemptions, and payment plans, all aimed at making it easier for individuals and businesses to meet their tax obligations.

Types of Tax Relief

Tax Deductions

Tax deductions reduce the amount of income that is subject to taxation. Common deductions include those for mortgage interest, medical expenses, charitable contributions, and student loan interest. By lowering taxable income, deductions can significantly reduce the amount of tax owed.

Tax Credits

Unlike deductions, tax credits directly reduce the amount of tax owed. There are two types of credits: non-refundable and refundable. Non-refundable credits can reduce the tax liability to zero but not beyond, whereas refundable credits can result in a tax refund. Examples include the Earned Income Tax Credit (EITC) and the Child Tax Credit.

Tax Exemptions

Tax exemptions reduce or eliminate the tax obligation for certain income or entities. For instance, interest income from municipal bonds is often exempt from federal income tax. Additionally, certain nonprofit organizations are exempt from paying federal income taxes.

Installment Agreements

For those unable to pay their taxes in full, the IRS offers installment agreements, allowing taxpayers to pay their tax debt over time. This can be particularly helpful for individuals or businesses facing large tax bills that are not immediately payable.

Offer in Compromise

An Offer in Compromise (OIC) is an agreement between a taxpayer and the IRS to settle a tax debt for less than the full amount owed. This option is typically available to taxpayers who cannot pay their full tax liability or doing so would create financial hardship.

Penalty Abatement

In certain situations, taxpayers may be eligible for penalty abatement, which removes or reduces penalties for failing to file a tax return or pay taxes on time. The IRS may grant abatement if the taxpayer can demonstrate reasonable cause for the failure.

Fresh Start Program

The IRS Fresh Start Program was introduced to help struggling taxpayers manage their tax debts more effectively. The program expanded installment agreements, made it easier to obtain an Offer in Compromise, and increased the threshold for tax liens.

Benefits of tax relief US

Tax relief offers several benefits to both individuals and businesses:

Financial Relief: Reducing the tax burden can free up financial resources, allowing taxpayers to invest in other areas such as savings, education, or business expansion.

Debt Management: For those with outstanding tax debts, relief programs can provide a manageable path to settling obligations without severe financial strain.

Incentives for Economic Activity: Many tax relief measures are designed to encourage certain economic behaviors, such as home ownership, education, and energy efficiency. By taking advantage of these incentives, taxpayers can contribute to broader economic goals while benefiting personally.

How to Access Tax Relief

Accessing tax relief involves understanding eligibility requirements and the application process for each program. Here are some steps to consider:

Research and Identify Opportunities:

Begin by researching available tax relief options at the federal, state, and local levels. The IRS website, along with state revenue department websites, can provide valuable information.

Consult a Tax Professional:

Tax laws and relief programs can be complex. Consulting a tax professional, such as a certified public accountant (CPA) or tax attorney, can provide tailored advice and help navigate the application process.

Prepare Necessary Documentation:

Gather relevant financial documents, such as income statements, expense records, and tax returns. Proper documentation is crucial for determining eligibility and completing applications.

File Applications on Time:

Many tax relief programs have specific deadlines. Ensure that applications and any required documentation are submitted on time to avoid missing out on available relief.

Stay Informed:

Tax laws and relief programs can change. Stay informed about new opportunities and updates to existing programs to maximize potential benefits.

Common Challenges and Considerations

While tax relief can provide significant benefits, there are challenges and considerations to keep in mind:

Eligibility Requirements: Each tax relief program has specific eligibility criteria that must be met. Understanding these requirements is crucial to successfully obtaining relief.

Complexity of Tax Laws: Navigating the complexities of tax laws and relief programs can be daunting. Professional guidance can help simplify the process and ensure compliance.

Impact on Future Taxes: Some relief programs may have implications for future tax liabilities. It is essential to understand these implications to make informed decisions.

Conclusion

Tax relief in the United States offers valuable opportunities for individuals and businesses to manage their tax liabilities effectively. By understanding the various types of relief available and taking proactive steps to access these programs, taxpayers can alleviate financial burdens and make the most of incentives designed to encourage economic growth and stability. Whether through deductions, credits, or payment plans, tax relief can provide the support needed to navigate the complexities of the U.S. tax system.

[beardedmrbean]

WASHINGTON (AP) — IRS Commissioner Danny Werfel has a message for high-wealth tax cheats who are wrongly deducting private jet travel and otherwise shorting the government on their taxes: Pay your fair share so “others aren’t shouldering the burden of funding our government."

He also has a thought for ordinary taxpayers putting off the inevitable with less than a month left in tax-filing season: “Get it done.” (And double-check your work.)

Werfel, who will hit the one-year mark at the helm of the IRS in April, said in a wide-ranging interview with The Associated Press that the agency will expand its pursuit of high-wealth tax dodgers with new initiatives in the coming months and is using tools like artificial intelligence to ferret out abuses and taking the fight to sophisticated scammers.

That doesn’t mean the IRS has undergone a complete image makeover. There’s still plenty of criticism to go around, including from Republican lawmakers who accuse the agency of heavy-handed overreach.

“We’re kind of like the NFL referee — when we get the call right or wrong, we get booed, and we’re OK with that,” Werfel said.

But efforts to crack down on high-wealth tax cheats are starting to bite, he says, and that should mean more money coming in to fund the government.

“It's having an impact,” Werfel said. Large corporate filers and others are “taking notice that the IRS is ramping up our scrutiny, and I think that will inevitably result in more compliance" — and revenue.

Werfel is promising taxpayers better service this year as he works to repair the agency's image as an outdated and maligned tax collector. But it's a tall order for a federal agency that even he has referred to as “iconically unpopular” with the American public.

“We have some myth-busting to do,” Werfel said, referring to alarmist and inaccurate Republican claims that the agency plans to hire 87,000 armed agents ready to harass middle-income earners.

”We are not," he said. “We are hiring phone assisters armed only with phone headsets. We’re hiring accountants armed only with calculators.”

Werfel took over an agency that was understaffed and drowning in unprocessed tax returns after decades of underfunding.

Shortly before he arrived, the IRS received an $80 billion infusion under the Democrats' Inflation Reduction Act passed in 2022. But Republicans have been chipping away at that money.

Last year’s debt ceiling and budget cuts deal between Republicans and the White House resulted in $1.4 billion rescinded from the agency and a separate agreement to take $20 billion from the IRS over the next two years and divert those funds to other programs. And this past January, a debt ceiling deal meant to avoid a government shutdown frontloaded the full $20 billion cut to this year.

Werfel has been in a race against time to show how improvements to the agency can benefit taxpayers. He said agency priorities include customer service improvements like answering the phones faster and making sure the rich “pay their fair share."

The agency also is piloting a program for people to file their taxes directly to the agency without the help — or cost — of private commercial software.

Werfel said more than 50,000 people in 12 states have started using the new Direct File system to complete their taxes. The free online tool is available for people with very simple W-2s and who claim a standard deduction for their federal income taxes.

The Direct File rollout has drawn some consternation from commercial software firms like Intuit, as well as Republicans who argue there are free filing programs that already exist.

But so far, Werfel says, “people are telling us that they found it to be quick and easy, and everyone certainly loves that it’s free. And their No. 1 question is: Are we going to have this again next year?"

Werfel sounds optimistic, but he's not ready to give an answer yet on the program's future.

Overall, Werfel says, the agency has added “more tools to IRS.gov in the last two years than in the previous 20” to make tax-filing easier. Wait times for answering phone calls are at two minutes or less.

Werfel sat for an interview in an auditorium at the IRS headquarters in Washington, where he said sustained funding is critical to make up for past shortcomings. He said IRS workers are "passionate about helping taxpayers. And when we don’t have the funding to provide them the tools or the training, they’re upset because they can’t do enough to help the taxpayers.”

Major new initiatives in recent months have included an aggressive pursuit of high-wealth earners who don't pay their full tax obligations, such as people who improperly deduct personal flights on corporate jets and those who just don't file at all.

The private jets, in particular, are a place where “many corporations are sloppy with their bookkeeping,” he said. Werfel said the agency's crackdown there "sets the tone for the American people” that everyone has to pay what's due.

Werfel said the agency also has put new focus on "being accessible, answering the phones, keeping our walking centers open and updating our website so that people can do things more with the IRS without ever leaving their smartphone or their tablet."

Even so, he allows, the agency still isn’t technologically where it needs to be.

There is still an operating pay phone located in the hallway at the IRS building.

[myweddingsandevents]

Here’s an upside to persistent inflation: More of your income will be taxed at lower rates next year.

Borrow from Your Home, Not the Bank ($25k for $164/mo)

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The adjustments, based on formulas set out in the tax code, are meant to keep inflation from hiking taxes. “It’s kind of like a high tide lifts all boats,” said Chris Oliva, a certified public accountant at UHY Advisors in New York City.

The standard deduction and the thresholds for each tax bracket are up 5.4%, the second largest adjustment in the last three decades after last year’s 7.1% hike.

The new tax bracketsStandard deductionCapital gains zero-percent rateEstate and gift-tax thresholds401(k) and IRA contribution limits

The new tax brackets

The threshold for the top federal income-tax bracket in 2024 will climb by nearly $40,000 next year for a married couple. The 37% income-tax rate will apply to income above $731,200. For individuals, that top tax bracket will start at $609,350.

Your effective tax rate will be lower than your top rate. That is because the first slice of income is taxed at 10%, the next slice at 12%, and so on. Your effective tax rate is essentially a blended rate.

and it's moved to a digital tax filing system.

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“Most people in their heads say, ‘I’m in the 24% bracket and that’s my tax rate.’ But when you’re in the 24% bracket, you’re not paying 24% on all of your income,” said Kelly Gillette, a CPA and tax partner at Armanino in Dallas.

Knowing the brackets and your marginal tax rate can help with year-end planning. A married couple with $300,000 of income, taking the standard deduction, would have a marginal tax rate of 24%. They would have more than $100,000 left in that bracket before they jump to the 32% rate. So they might consider converting part of a traditional individual retirement account into a Roth IRA if they have little or no investment income, Gillette said, securing that 24% rate for the conversion.

Earn More with Kohl's Rewards - Easy and Hassle-Free Returns

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The $10,000 cap for deducting state and local taxes, known as the SALT break, and the $3,000 limit on capital losses that can be deducted from income are other individual items that aren’t indexed for inflation.

Standard deduction

The standard deduction rises to $14,600 for individuals in tax year 2024, up from $13,850 for this year. For married couples, it is $29,200 for 2024, up from $27,700. The majority of filers save money by taking the standard deduction instead of itemizing deductions, including deductions for charitable donations and medical expenses.

Capital gains zero-percent rate

The income thresholds for paying capital-gains tax at various rates are also indexed for inflation. Some taxpayers might want to sell appreciated stock when they can snag a 0% capital-gains tax rate, said Gillette. For 2024, the 0% rate applies to single filers with taxable incomes up to $47,025 and joint-filing couples with incomes up to $94,050.

Estate and gift-tax thresholds

The federal estate-tax exclusion amount, how much an individual can shelter from estate taxes, is $13.61 million for 2024, up from $12.92 million this year. Individuals can make lifetime gifts, outright or in irrevocable trusts, up to that amount without incurring federal estate or gift tax. The giver owes tax only if the amount goes over the threshold.

A separate annual limit on tax-free gifts is $18,000 for 2024, up from $17,000 this year. These gifts don’t count toward the lifetime maximum, and neither the gift giver nor receiver is taxed.

Wealthy individuals typically make annual gifts, and many are considering large gifts because the estate-tax exemption is set to drop to about $7 million when the Trump tax cuts expire at year-end 2025, said Pam Lucina, chief fiduciary officer of Northern Trust.

“Some clients want to see what the political winds are before they pull the trigger,” she said. In any case, it is crucial to do financial modeling to make sure you can afford to make gifts, and pay any taxes due.

401(k) and IRA contribution limits

Inflation adjustments apply to retirement account limits, too, and the IRS announced those last week.

The 2024 contribution limit for 401(k)s and similar workplace plans is $23,000, up $500 from this year (plus $7,500 for those 50 and older). The contribution limit for individual retirement accounts for 2024 is $7,000, up from $6,500 this year (plus $1,000 for those 50 and older).

Write to Ashlea Ebeling at ashlea.ebeling@wsj.com

[filetaxme]

How to find the best corporate income tax in uae? 

The Corporate Income Tax (CIT) is a key source of revenue for the United Arab Emirates (UAE). The CIT is imposed on the profits of corporations operating in the UAE and is calculated on the basis of their annual taxable income. It is an important contributor to the UAE’s overall tax base and helps to fund the country’s social and economic development. The CIT also helps to level the playing field for businesses operating in the country and is used to promote fair competition. The CIT also serves to protect the UAE’s tax base from erosion due to international tax evasion practices. As such, it is a vital tool for maintaining the UAE’s economic stability.

All you need to know about the best corporate income tax in UAE

The United Arab Emirates (UAE) has one of the most attractive corporate income tax regimes in the world. The UAE does not levy any income taxes on foreign companies, as long as their income is derived from activities outside of the UAE. Additionally, certain categories of companies in the UAE are exempt from all taxes. The corporate income tax rate for companies that are subject to tax is a flat rate of 55%. This rate applies to both foreign and local companies in the UAE. 

In terms of compliance, the UAE has well-established procedures for filing corporate taxes. Companies must register for taxes with the Federal Tax Authority (FTA), and must file their tax returns on a yearly basis. Companies are also required to keep detailed records of their financial activities and submit these to the FTA. The UAE also offers tax incentives to encourage foreign investment. 

For example, certain sectors such as oil and gas exploration, free zones, and renewable energy projects are eligible for tax holidays. Additionally, companies may be eligible for reduced tax rates or exemptions in specific cases. The UAE has a strong commitment to maintaining a competitive corporate tax rate, and this has helped to attract foreign investment and contribute to the country’s economic growth.

How to proceed with the corporate income tax in UAE? 

The corporate income tax in the United Arab Emirates (UAE) is zero percent. However, the UAE has certain taxes and fees, such as value-added tax (VAT), excise tax, and customs duties, that can affect a company’s bottom line. Companies must register for a trade license before they can start doing business in the UAE. Depending on the type of business, different licenses may be needed. Companies also need to register for a tax identification number (TIN) with the Federal Tax Authority (FTA). 

This is necessary for any business that wants to register for, or pay, taxes or fees. Companies must also keep accurate, up-to-date records of their income and expenses to calculate the amount of taxes and fees they are liable for. Companies must then submit tax returns and pay the applicable taxes and fees to the FTA. The FTA also offers various incentives and exemptions to encourage foreign investment in the UAE. Companies should be sure to check with the FTA to see what incentives and exemptions they may be eligible.

For more info make sure to go through the official website of File Tsx Me. 

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Types of Financial Frauds

Financial fraud occurs when an individual steals money from you or harms your finances through lies, misleading information, or other illegal practices. There are several ways that fraudsters can use to commit financial fraud, including using stolen property, documents, or financial data. Additionally, different online methods such as malware and phishing can give them access to your personal information can lead to financial fraud. But first, let’s look at the common types of financial fraud:

1. Embezzlement:

Embezzlement involves a person entrusted with money or property stolen for personal use and misappropriating the resources to get again. Most of the time, the trustee only has legal access but is not the owner. This financial crime can be categorized as financial crime.

To protect yourself from this type of fraud, always vet your employees. Do a full background check, implement zero-tolerance policies for theft and restrict safes and cash boxes.

2. Pyramid Schemes:

These are fraudulent plots that involve a promise of high profits to investors. However, this promise is pegged on your ability to enroll more people in the scheme. The more you recruit, the more you earn, and the more your recruiters recruit others, the more the returns. Sometimes, the fraudsters may use a product as a front to entice consumers and hide the nature of the pyramid scheme. At first, the scheme organizers may pay a few investors, but they disappear once they have recruited many investors.

To avoid being defrauded, do not participate in any promotion that looks like a pyramid scheme. Additionally, get information regarding the company, such as the shareholders, and read their prospectus. If they fail to provide the above information, do not invest your hard-earned dollars.

3. Credit Card Fraud:

In the past years, credit card financial fraud has increased. In fact, criminals have become more aggressive, making Americans lose around $56 billion annually. In this fraud, individuals use your credit or debit card without your permission. They can get the card through actual theft or the card’s number through illegal internet connections.

If you lose your credit or debit card, always cancel the card immediately to prevent this fraud. Additionally, always use a strong password when shopping online under your secure Wi-Fi and avoid using shared Wi-Fi.

4. Identity Theft:

Our third major financial fraud is identity theft. Identity theft occurs when someone uses your identifying information without your authorization. This identifying information includes your names, social security number, and debit card details. People who steal such information use it to commit fraud, such as applying for credit, shopping online, filing taxes, or getting medical services.

To avoid identity theft, steer clear of giving out your personal information such as bank account number, social security number, or date of birth. Always use a strong password on your online accounts and collect your mail every day.

5. Tax Fraud:

Tax fraud is a federal crime. It occurs when a person or entity forges tax information to reduce the tax obligation. It is orchestrated by claiming false deductions and not reporting the whole income.

To be safe, every individual should avoid tax fraud personally. Always file complete and accurate tax returns. Additionally, file your taxes early since most tax frauds occur during tax season.

6. Insurance Fraud:

Insurance fraud can occur in different ways. First, it can happen when a claimant obtains an insurance claim they are not entitled to or when the insurance company denies a claimant a benefit they deserve. The insurer can also sell policies from fake companies or not submit premiums from the insurer’s side. On the other hand, the buyer can fake a kidnapping, death, or medical history.

This crime can be avoided by vetting insurance agents and refusing to sign any document without full disclosure of information. If you are comfortable with the information given, always confirm the coverage through the insurance carrier. To avoid inflated prices, always collect and compare quotes from different insurers.

Final Words: It is vital to report financial fraud to the relevant law enforcement and agencies as soon as possible. In case of fraudulent charges, always cancel or dispute them as soon as you discover them. Furthermore, if you are a victim, always collect the documents showing the crime, such as credit reports, bank statements, and tax forms from the previous years, and keep filing them. There are many firms that provides Financial Services management for using your funds properly to ensure that funds usage is optimized as per the requirements, and even a mistake in management of funds can cost heavily.

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The IRS has provided the following guidance for handling 1099-K tax reporting errors on your return

The IRS provided advice on how to resolve problems with Form 1099-K for third-party payments when filing taxes.

According to Jim Guarino, managing director at Baker Newman Noyes, if you can't fix 1099-K problems, you must address the form in your return to prevent "matching errors" from the IRS.

There has been a surge of misunderstanding over tax reporting for e-commerce firms like eBay, Etsy, and Poshmark as well as payment programmes like Venmo and PayPal. But this week, the IRS clarified its position in a report.

More than 200 transactions totaling more than $20,000 will still be required in 2022 in order to file Form 1099-K, which informs the IRS of payments made to third parties for business purposes.

When the 2023 threshold decreases below $600 for even a single transaction, that is expected to change for the upcoming tax season.

In the interim, regardless of whether you receive Form 1099-K, you must continue to record company income, the IRS stated in a news release on Thursday. The federal agency states that "all income must be reported, unless it is specifically exempted by law."

 Mistakes in 1099-K reporting are a problem.

Although more taxpayers should receive Form 1099-K next season, it's likely that some businesses may have mistakenly sent out the 2022 form for personal transfers to some filers or reported inaccurate amounts.

Here's why it matters: According to Jim Guarino, a certified financial planner and managing director of Baker Newman Noyes in Woburn, Massachusetts, if the IRS receives tax forms and you don't include those on your return, it causes a "matching error" for the organisation.

 In essence, he added, the IRS compares the data it receives from third parties to the data on a tax return. If there is a discrepancy in the amounts, a tax notice might be issued.

Fixing 1099-K reporting issues

This week, the IRS updated its instructions on what to do if you received a Form 1099-K by mistake or the amount was off.

The IRS stated that some taxpayers may have received Form 1099-K inadvertently.

The IRS stated that in some other situations, such as for transactions involving friends and family or expense pooling, the form may have been sent incorrectly.

 The agency advises getting in touch with the issuer directly to fix 1099-K errors. However, if you are unable to receive a timely update, the IRS advises zeroing out the income on two lines of Schedule 1 and indicating on both lines that "Form 1099-K Received in Error" was received. 

·       Line 8z of Part I, "Other Income," reads, "(Add Income).

·       Line 24z of Part II, "Other Adjustments" (offset Income).

Alternately, the IRS stated in the FAQs page updated this week that you can enter both the gross proceeds and the offsetting negative amount on Line 8z for tax year 2022.

Naturally, giving a suitable and understandable explanation for the offsetting adjustment is also a crucial component of accurately reporting this information, according to Guarino.

 If you sold personal belongings at a loss and received Form 1099-K, you can take the same actions, according to the IRS. Both can be listed under the heading "Form 1099-K Personal Item Sold at a Loss".

 However, you must fill out Schedule D and Form 8949 to declare profits as a capital gain.

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A Complete Guide to Claiming the Electric Vehicle Tax Credit

Switching to an electric vehicle (EV) is not only a significant step toward reducing your carbon footprint but also a financially smart choice, thanks to the availability of federal tax credits. These incentives can make purchasing an EV more affordable, encouraging more people to adopt eco-friendly transportation. In this blog post, we’ll delve into what the electric vehicle tax credit is, how to claim it, and important details you need to know to maximize your benefits.

What Is the Electric Vehicle Tax Credit?

The federal electric vehicle tax credit, officially known as the Qualified Plug-In Electric Drive Motor Vehicle Credit, offers a substantial financial incentive to individuals who purchase a qualifying electric vehicle. The credit amount can be as high as $7,500, depending on the battery capacity and the manufacturer of the vehicle. This credit directly reduces the amount of income tax you owe, making EVs a more attractive option.

Who Is Eligible for the Electric Vehicle Tax Credit?

To be eligible for the electric vehicle tax credit, you must meet the following criteria:

Purchase Date: The vehicle must be purchased new, not used, and it must be acquired for use, not for resale.

Vehicle Type: The vehicle must be a qualifying plug-in electric drive motor vehicle with a battery capacity of at least 4 kilowatt-hours.

Manufacturer Cap: The credit begins to phase out for a manufacturer's vehicles when at least 200,000 qualifying vehicles have been sold in the United States. After the cap is reached, the credit is reduced by 50% for six months and then by 75% for another six months before being phased out entirely.

How to Claim the Electric Vehicle Tax Credit

Verify Eligibility: Ensure the vehicle you are purchasing qualifies for the tax credit. You can usually find this information from the manufacturer or the dealership.

Complete IRS Form 8936: When you file your federal tax return, you’ll need to complete IRS Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit. This form calculates the credit amount based on the specifics of your vehicle.

Include the Credit Amount on Form 1040: After completing Form 8936, transfer the credit amount to your Form 1040. This will reduce your tax liability for the year.

Keep Documentation: Retain all purchase documentation, including the sales contract and any certification from the manufacturer that the vehicle qualifies for the credit. This is important in case the IRS requests proof of your eligibility.

Key Considerations and Tips

Tax Liability: The credit is non-refundable, meaning it can reduce your tax bill to zero, but you won’t receive a refund for any excess credit. Make sure you have enough tax liability to take full advantage of the credit.

State Incentives: Many states offer additional incentives for electric vehicle purchases, such as rebates, tax credits, or reduced registration fees. Check your state’s programs to maximize your savings.

Consult a Tax Professional: Navigating tax credits can be complex. Consulting a tax professional can ensure you correctly claim the credit and maximize available incentives.

Conclusion

Claiming the electric vehicle tax credit can significantly reduce the cost of purchasing an EV, making it a more attractive and affordable option for many people. By understanding the eligibility requirements, properly completing the necessary tax forms, and keeping thorough documentation, you can take full advantage of this financial incentive. Additionally, exploring state and local incentives can further enhance your savings. Embrace the future of transportation with confidence, knowing you’re making a positive impact on both the environment and your wallet.

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Canadians in some provinces and territories will soon be paying a little bit more at the gas station as the federal carbon price is set to go up starting Saturday.

The fuel charge is rising by 30 percent from $50 per tonne of emissions to $65 on April 1, which will translate to an increase of roughly three cents per liter for gas, reaching a total of 14 cents per liter.

The scheduled increase will apply in Ontario, Manitoba, Saskatchewan, Alberta, and Yukon, and the carbon price jump will go into effect in Newfoundland and Labrador, Nova Scotia, and Prince Edward Island on July 1.

Canada began pricing carbon pollution as part of Ottawa’s commitment to tackle climate change and reach net-zero carbon emissions by 2050.

While Canadians will see an increase at the pumps, the carbon price increase is not expected to have a huge impact on their gas expenses, said Hadrian Mertins-Kirkwood, a senior researcher with the Canadian Centre for Policy Alternatives.

“It’s an incremental increase, but it’s not actually going to be a huge change year-over-year that people will notice; it could mean a $1 jump per tank depending on how big the vehicle is, Mertins-Kirkwood estimated. For businesses too, it’s “not a major expense,” he said.

Mertins-Kirkwood said things like oil market fluctuations and gas taxes have a much bigger impact on energy cost swings and are way bigger than the carbon price.

The carbon price increase comes amid some temporary relief for Canadians with lower gas prices reported in February after record-high costs last year; prices in Canada surpassed $2 per liter for the first time ever last year.

Monthly, Canadian drivers paid one percent less for gas in February, Statistics Canada said in its latest prices, which dropped by 4.7 percent in February, which was the first yearly decline since January 2021, StatCan reported.

The agency said the year-over-year decline is partially attributed to the significant jump in prices seen in February 2022 amid Russia’s invasion of Ukraine.

The Canadian national average for gas prices stood at 150.8 cents per liter on Friday morning; according to GasBuddy, CAA’s estimate for Friday was 149 cents per liter.

The carbon tax will not only raise gas prices but could make its way into Canadian pocketbooks in other ways too; for instance, aviation gasoline in the four provinces is also going up by roughly 3.5 cents a liter for a total of almost 16 cents per liter, which could potentially mean higher airfares down the line.

However, the rates for aviation gasoline and aviation turbo fuel will remain unchanged in the territories due to the “high reliance” on air transportation, the federal government says.

Light fuel oil, which is used in household equipment, is increasing to 17 cents per liter, an increment that can have ripple effects on food prices, other grocery items, and shipped goods, experts say, as Canada’s truck-based transportation industry will be spending more money to fill up the tank.

"It’s possible it could have an impact on things like shipping, but it’s a relatively minor impact," said Kirkwood, who claimed that eight out of 10 Canadian families will get more money back than they pay under the federal carbon pricing plan because of the Climate Action Incentive.

Canadians can claim CAI payments by filing federal household tax returns, except those earning a high income, who are "better off" from the carbon pricing due to the government rebate, which recycles revenue back to families.

However, the Parliamentary Budget Officer (PBO), an independent watchdog, said in a report last year that a bulk of Canadian households over the long term will see a “net loss” from the federal carbon pricing by 2030.

The PBO said that Albertans in the top income quintile would pay the largest net cost from the carbon tax, while the lowest-income quintile households in Saskatchewan stand to see the largest net gain via the rebate.

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How To Deal With Corporate Tax Audits, Business Tax Audits in Austin And Dallas, TX?

Many small business owners believe they are safe once their tax returns are filed within the due date. Unfortunately, the possibility of receiving a tax audit letter remains high for many business entities. There is no reason to feel irritated and anxious about answering the queries put forward by the IRS, however. It is helpful to approach a professional well-versed in handling corporate tax audits, business tax audits in Austin and Dallas, TX.

It is essential to be prepared for such an eventuality even when one believes nothing is wrong with the return filed. Statistics reveal that almost 2.5% of small business owners are audited by the IRS annually. It is not the end of the world. One must try to understand the process and know how best to solve the problems.

Some of the facts that one needs to be well aware of include the following:-

What does it mean to have the tax returns audited?

The process is merely an examination of the tax returns filed for a specific financial year. Seasoned tax auditors undertake the procedure to verify the accuracy of information provided to the IRS. The auditors will check the compliance of both individual and business tax returns filed with the IRS and note whether it meets State and Federal regulations. The following reports are scrutinized to find discrepancies if any:-

· Taxable income

· Losses incurred during the financial year

· Expenses made individually and on behalf of the business entity

· Tax deductions claimed

IRS Audit Process

The IRS selects a few of the thousands of tax returns filed annually to check for compliance. Being informed about the process is important instead of having anxious moments.

Possibilities of an IRS Tax Audit

The chances of a small business being audited by the IRS are reasonably low. It may be essential to contact a tax professional to file the returns properly without triggering any of the red flags, namely:

· Use of Round Numbers- It is human nature to use round numbers when estimating. The IRS tries to identify big numbers ending in zero that indicates guesswork. Doing so while reporting expenses is a strict no-no, as it is a sign that the purchase receipts have not been checked or retrieved when filing the return

· Business Loss Claims- Small businesses may run at a loss for the first few years until they even out. Claiming business losses for each year for a long time is likely to alarm the auditors. This is one of the top reasons for being audited.

· Failure to report the income- Not reporting an income source is a common mistake most individuals make. The IRS is extremely strict about lack of information, especially when the figures do not match. Not informing the IRS about any source of income is likely to send one to prison.

It is advisable to have a professional experienced in corporate tax audits and business tax audits in Austin and Dallas, TX, to accompany one for the audit.