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☆ Why Americans making over $200,000 are flocking to Idaho and Montana
▼ + stars: | 2023-07-27 | by ( Noah Sheidlower | ) www.businessinsider.com time to read: +4 min

Those states saw high net migration among those earning above $200,000, meaning more are moving in than out. Florida is one of just nine states without an income tax, and the weather and business opportunities have been major pulls for Americans. Idaho has seen a particularly accelerated rate of high-earners moving to cities such as Boise and Meridian. Texas had the second-highest total net migration with around 9,000, followed by North Carolina at over 5,400. California had a net migration loss of over 27,300 high-earners, while New York had a loss of nearly 20,000.

Persons: Thursday's Organizations: Service, California . Idaho and, Meridian . Idaho, US, Economic Innovation Group Locations: Idaho , Montana, Florida, . California, New York, Wall, Silicon, California . Idaho, California . Idaho and Montana, . Idaho, Boise, Meridian, Texas, North Carolina, South Carolina , Tennessee, Georgia, California, Illinois , Massachusetts, New Jersey, Washington, Thursday's —, Bozeman, Billings

☆ Mega Millions jackpot hits $910 million. Here's the tax bill if you win
▼ + stars: | 2023-07-26 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

The Mega Millions jackpot grew to $910 million on July 26, 2023. Tayfun Coskun | Anadolu Agency | Getty ImagesThe Mega Millions jackpot has grown to an estimated $910 million, with the next high-stakes drawing on Friday at 11:00 p.m. The chance of hitting the Mega Millions jackpot is roughly 1 in 302 million. More than $111.4 million goes straight to IRSBefore collecting a dollar of the Mega Millions jackpot, there's a 24% federal withholding. watch nowHere's how federal taxes workThe multi-million dollar Mega Millions jackpot bumps the winner into the top federal income tax bracket, which is currently 37%.

Persons: Tayfun, John Loyd, Loyd Organizations: Anadolu Agency, Getty, Mega Locations: Fort Worth , Texas

☆ $1 billion Powerball jackpot is up for grabs. Here’s what the winner could owe in taxes
▼ + stars: | 2023-07-19 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Scott Olson / GettyThe Powerball jackpot has ballooned to an estimated $1 billion, raising the stakes for the next drawing at 10:59 p.m. It's the third-biggest prize in the game's history — falling behind the record $2.04 billion jackpot in November and $1.586 billion prize from 2016, according to the Multi-State Lottery Association. More than $124 million immediately goes to the IRSBefore seeing a penny of the jackpot, winners pay a sizable tax withholding. However, Loyd warns the 24% withholding won't cover the entire tax bill because the prize pushes the winner into to the 37% tax bracket. After the 24% federal withholding, the jackpot winner's tax bill depends on several factors but could easily represent millions more.

Persons: Scott Olson, John Loyd, Loyd Organizations: State Lottery Association, IRS Locations: Fort Worth , Texas

☆ Powerball jackpot hits $900 million. Here's the tax bill if you win
▼ + stars: | 2023-07-17 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Justin Sullivan | Getty ImagesThe Powerball jackpot has soared to an estimated $900 million after Saturday's drawing went by without a winner. If you choose the $465.1 million cash option, the 24% withholding automatically reduces your prize by roughly $111.6 million. "The 24% [withholding] is not the only tax bill" because the highest federal tax bracket includes another 13%. You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income. The jackpot winner's remaining tax bill after the 24% federal withholding depends on several factors but could easily represent millions more.

Persons: Justin Sullivan, It's, John Chichester Jr, Chichester, it's Organizations: Chichester Financial Group, IRS Locations: Phoenix

☆ Powerball jackpot climbs to $875 million. Here’s how much the winner could pay in taxes
▼ + stars: | 2023-07-14 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

If you choose the $441.9 million cash option, the 24% withholding automatically reduces your prize by roughly $106 million. "The 24% [withholding] is not the only tax bill" because the highest federal tax bracket includes another 13%. Here's how federal tax brackets workWhile inflation increased the federal income tax brackets for 2023, millions from the lottery still pushes the winner into the 37% bracket. You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income. The jackpot winner's remaining tax bill after the 24% federal withholding depends on several factors but could easily represent millions more.

Persons: Scott Olson, John Chichester Jr, Chichester, it's Organizations: Chichester Financial Group, IRS Locations: Phoenix

You need to earn $952,902 to be in the top 1% of earners in Connecticut, per a new SmartAsset study. But in West Virginia, which has much higher levels of poverty, this is just $374,712. In West Virginia, by comparison, you need just $374,712. West Virginia, which has one of the lowest median state incomes, comes bottom in the ranking. Mississippi, New Mexico, Kentucky, and Arkansas join West Virginia to make up the five states with the lowest income needed to make the top 1%.

Organizations: Washington, Bureau of Labor Statistics, Department of Health and Social Services . Locations: Connecticut, West Virginia, Connecticut , Massachusetts, California , New Jersey, Department of Health and Social Services . Connecticut, Massachusetts , California , New Jersey, Washington, Mississippi, New Mexico , Kentucky, Arkansas

☆ Nearly 1.5 million taxpayers are 'leaving money on the table' as key tax deadline nears, advisor says
▼ + stars: | 2023-07-12 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

There's a key tax deadline approaching for past-due filers, with an estimated $1.5 billion in unclaimed refunds up for grabs. Nearly 1.5 million taxpayers still have pending refunds from 2019, with a median payment worth $893, according to the IRS. The last chance to file or amend 2019 returns to claim your money is July 17. Filing 2019 returns could yield "thousands of dollars," Lucas said, especially for those claiming the so-called earned income tax credit, a tax break for low- to moderate-income workers. The earned income tax credit is "refundable" because you'll still qualify for a refund when the credit exceeds taxes owed.

Persons: Tommy Lucas, Moisand Fitzgerald Tamayo, Franklin, Lucas, you'll Organizations: Finance Locations: Orlando , Florida

☆ Powerball jackpot hits $725 million. If you win, here's the tax bill
▼ + stars: | 2023-07-11 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

The Powerball jackpot has reached $725 million by July 11, 2023. If you choose the $366.2 million cash option, the 24% withholding automatically reduces your cut about $88 million. However, many taxpayers wrongly assume they're off the hook after that 24%, Chichester said. watch nowHere's why: Millions in lottery winnings will push you into the top federal income tax bracket. You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income.

Persons: John Chichester Jr, Chichester Organizations: Medianews, Getty, Chichester Financial Group Locations: Phoenix

☆ Millions of high earners pay this investment income tax every year. Here's how to avoid it
▼ + stars: | 2023-07-05 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Higher earners are more likely to owe an extra levy on investment earnings than a decade ago. Enacted as part of the Affordable Care Act health-care expansion, the 3.8% net investment income tax applies to capital gains, interest, dividends, rents and more once your so-called modified adjusted gross income, or MAGI, exceeds certain thresholds. MAGI can be higher than adjusted gross income because it adds back the foreign earned income exclusion. While dozens of tax code provisions adjust for inflation every year, the thresholds for net investment income tax have remained the same since 2013 — MAGI above $200,000 for single filers and $250,000 for married couples filing together. An estimated 7.3 million taxpayers paid nearly $60 billion in net investment income tax in 2021, compared with 3.1 million taxpayers paying $16.5 billion in 2013, according to the Congressional Research Service.

Persons: it's, It's, Brian Schultz, Plante Moran Organizations: Affordable, Finance, Congressional Research Service Locations: Southfield , Michigan

Our experts answer readers' student loan questions and write unbiased product reviews (here's how we assess student loans). Borrowers who have refinanced federal loans into private loans are ineligible for forgiveness. See Insider's picks for the best student loan refinance lenders >>What is Biden's student loan forgiveness plan? Federal student loans you've refinanced are not eligible for forgiveness under Biden's debt relief plan. Types of student loans that are eligible for forgivenessThe Education Department maintains a list of eligible student loans on its website, which includes the following:Federal Direct Loans — subsidized, unsubsidized, PLUS loans, and consolidation loansFederal Family Education Loan (FFEL) Program loans (ended in 2010)Federal Perkins Loan Program loans (ended in 2017)Education Department-held defaulted loansAll loans funds must have been received on or before June 30, 2022.

Persons: Pell Grant, —, Biden, Pell, you've, doesn't, Andrew Latham, Biden's, Perkins, Latham Organizations: Service, —, Pell Grants, Education Department, US, of Education, Department, Federal, Family Education, Loan Program, Public

☆ Here's how much you can make and still pay 0% capital gains taxes for 2023
▼ + stars: | 2023-06-23 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Marko Geber | DigitalVision | Getty ImagesHow to calculate your capital gains tax bracketWith higher standard deductions and income thresholds for capital gains, it's more likely you'll fall into the 0% bracket in 2023, Lucas said. For 2023, you may qualify for the 0% long-term capital gains rate with taxable income of $44,625 or less for single filers and $89,250 or less for married couples filing jointly. The rates use "taxable income," which is calculated by subtracting the greater of the standard or itemized deductions from your adjusted gross income. For example, if a married couple makes $100,000 together in 2023, their taxable income may easily fall below $89,250 after subtracting the $27,700 married filing jointly standard deduction. Other tax-planning opportunitiesWith taxable income below the thresholds, you can sell profitable assets without tax consequences.

Persons: Marko Geber, Lucas, Jim Guarino, Baker Newman Noyes Organizations: DigitalVision Locations: Woburn , Massachusetts

☆ Powerball's jackpot climbs to $366 million — here are the 8 states where you’d win the most
▼ + stars: | 2023-06-17 | by ( Mike Winters | ) www.cnbc.com time to read: +1 min

The Powerball lottery jackpot has crept up to a sizable $366 million ahead of Saturday night's draw, but if you're lucky enough to win, the amount you actually take home is likely far less. With the annuity option, you'll receive the full jackpot amount. With the lump-sum payout, you will receive 52% of the jackpot amount, according to calculations by lottery site usamega.com. Beyond that, you also have to pay taxes. While state taxes vary, all winners pay an upfront federal withholding tax of 24% on the winnings.

Persons: you'll

☆ IRS: Meet this June 15 deadline to 'avoid a surprise at tax time'
▼ + stars: | 2023-06-13 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The due date for 2023 second-quarter estimated tax payments is June 15, which applies to income without withholdings, such as self-employment earnings, investments, gig economy work and more. Some filers also make quarterly payments when their employer doesn't withhold enough from each paycheck. Last week, the IRS reminded filers to consider quarterly payments to "stay current and avoid a surprise at tax time." It's important to calculate tax payments accurately, pay on time and to consider meeting the "safe harbor" rule to avoid underpayment penalties, Lovison said. "Keep records, monitor your tax situation, and seek professional guidance for a smooth tax experience," he said.

Persons: filers, Sean Lovison, Lovison Organizations: IRS, Finance, WJL Financial Locations: Philadelphia

Experts have mixed reactions on whether the budget will meet IMF requirements and the impact on the economy. The ‘No new Taxes on Industry’ claim is belied by increase in super tax and that too in not a fully progressive way. Will retailers and the agri sectors that together contribute 40% contribute more than 2% as a result of the budget? SHAHBAZ ASHRAF, CHIEF INVESTMENT OFFICER AT FRIM VENTURES“It is surely not a budget that the IMF would approve of. "The regional energy price budget, which has built in cross subsidies, general collection and distribution losses is something the export industry cannot sustain."

Persons: GHIAS KHAN, EHSAN MALIK, SHAHID HABIB, ARIF HABIB, ZULQARNAIN, ABDUL ALEEM, IRFAN IQBAL SHEIKH, MUSTAFA PASHA, SHAHBAZ ASHRAF, they've, There's, ” FAHAD RAUF, ISMAIL IQBAL, GOHAR EJAZ, Ariba Shahid, Jonathan Oatis, Nick Zieminski Organizations: International Monetary Fund, IMF, Pakistan, Reuters, FX, ENGRO CORP, OF, PAKISTAN BUSINESS, Industry, PAKISTAN, Company, FEDERATION OF PAKISTAN, OF COMMERCE, PKR, IN, MILLS ASSOCIATION, Thomson Locations: KARACHI, Pakistan, PAKISTAN, Karachi

☆ IRS still has a sizable backlog of returns despite improvements, taxpayer advocate says
▼ + stars: | 2023-06-08 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

But there's still work to do, according to National Taxpayer Advocate Erin Collins. However, despite customer service boosts, the agency is still working through a sizable backlog — including amended returns, filings in suspense and other correspondence, she said. Collins said the IRS is currently juggling 3.7 million amended returns, 6.8 million "in suspense" with missing information and 5.3 million pieces of correspondence. This season, the agency has prioritized phone service and answered more than 85% of calls from key phone lines in less than five minutes. "The problem is, we are now back to a backlog of paper correspondence and amended returns, similar to where we were a year ago," she said.

Persons: there's, Erin Collins, Collins Organizations: VEGAS, IRS, American Institute of Certified Public Accountants, Finance, Advocate Service Locations: Las Vegas

☆ Here are tax-savvy ways to donate money, according to a charitable giving expert
▼ + stars: | 2023-06-07 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

LAS VEGAS — Tax savings aren't typically the main reason for philanthropy. But if you're planning to donate money, certain charitable giving strategies provide a bigger tax benefit. Roughly 33% of taxpayers itemized deductions in 2017, compared with fewer than 10% in 2021, said Hoyt, speaking at the American Institute of Certified Public Accountants' annual conference in Las Vegas on Tuesday. Given these constraints, investors can maximize tax breaks by "bunching gifts," Hoyt said. "Concentrate your gifts in one year, as opposed to spreading them over several."

Persons: there's, Christopher Hoyt, Hoyt, Ivy League acceptances Organizations: VEGAS, University of Missouri, American Institute of Certified Public Accountants, Finance, Ivy League Locations: Kansas City, Las Vegas

☆ There's still time to collect a refund on your 2019 tax return: 'It doesn't make sense to leave money on the table'
▼ + stars: | 2023-05-19 | by ( Mike Winters | ) www.cnbc.com time to read: +4 min

Here's what you need to know about the ETIC and other notable tax credits, and which forms you'll need to file a 2019 tax return. Some people are eligible for an even larger payout: up to $6,557, if you qualified for the Earned Income Tax Credit (EITC) . A whopping $1.5 billion in tax refunds remain unclaimed from the 2019 tax season, with the average refund totaling $893, the IRS says. Hundreds of dollars from the Internal Revenue Service could be up for grabs if you haven't submitted your 2019 tax return yet. The IRS is only accepting mailed 2019 tax returns, so you'll need to send your tax return to the addresses listed on this IRS webpage.

☆ The free online tax-filing system IRS is testing doesn't include automated returns — but pre-populated ones may be possible, research shows
▼ + stars: | 2023-05-18 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The IRS is preparing to test a free online direct filing system for some taxpayers — and while pre-populated returns with certain details already filled in aren't part of the initial plan, research shows it may be possible for certain filers. As directed by the U.S. Department of the Treasury, the pilot program will launch during the 2024 filing season for some taxpayers to assess the platform's broader viability. "We do not expect pre-population or pre-determining tax obligations to be part of it," IRS commissioner Daniel Werfel told reporters on a press call Tuesday, noting the project's limited scope. The paper was based on a random sample of roughly 350,000 individual tax returns from 2019, and accuracy was highest among low- to moderate-income filers. Errors were more likely to occur as itemized deductions increased.

☆ Black taxpayers more likely to face audits, IRS confirms
▼ + stars: | 2023-05-16 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

The IRS on Monday said that Black taxpayers are significantly more likely to face an IRS audit, confirming recent findings. IRS Commissioner Daniel Werfel said the agency is weighing changes to address the disparity. A study released in January by economists at Stanford University, the University of Michigan, the U.S. Department of the Treasury and the University of Chicago found the IRS audits Black taxpayers about three to five times more than other Americans. Specifically, he vowed to examine algorithms for audits of filers claiming the earned income tax credit, or EITC, a tax break to low- to moderate-income workers. Werfel added: "I will stay laser-focused on this to ensure that we identify and implement changes prior to next tax filing season."

☆ What Is a W-4 and How Do I Fill Mine Out?
▼ + stars: | 2023-05-09 | by ( ) www.wsj.com time to read: +14 min

How Form W-4 has changedIf you haven’t checked in on your W-4 lately, you’ll want to take a gander, says Pete Isberg, an executive with payroll provider ADP. That’s because Form W-4 was overhauled in 2020 based on changes passed in the Tax Cuts and Jobs Act a few years earlier. At the top of the W-4 form, you enter your personal information and filing status. If you have multiple jobs, you’ll use Step 2(b)—Multiple Jobs Worksheet, which is found on page 3 of Form W-4. So after you file your Form 1040 tax return, your W-4 form updates should be next.

☆ TurboTax payments for $141 million settlement to begin next week. Here's who qualifies
▼ + stars: | 2023-05-05 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Getty ImagesWho qualifies for a TurboTax settlement paymentYou may qualify for the settlement if you used TurboTax for federal returns for tax years 2016, 2017 or 2018, but were eligible for the free version of the software through IRS Free File. The settlement applies to those who were eligible for Free File and started 2016, 2017 or 2018 federal returns with Intuit's free software. Taxpayers qualified for Free File for 2022 with an adjusted gross income of $73,000, but the threshold was $64,000 for tax year 2016, according to the Free File Alliance. While most eligible consumers are expected to receive about $30, you may get up to $85 if you used TurboTax for the three consecutive years named. Although payments begin in May, some checks won't reach consumers until early June, depending on the mailing date, according to the settlement website.

☆ No, the IRS still isn't hiring an 'army' of armed auditors—here's how the agency is actually spending $80 billion
▼ + stars: | 2023-05-02 | by ( Ryan Ermey | ) www.cnbc.com time to read: +3 min

Last month, the IRS released a plan for how the agency plans to spend nearly $80 billion in funding granted through the Inflation Reduction Act passed in August. The IRS is already spendingThe IRS has already started using a portion of the appropriation to beef up customer services. More audits for wealthy filersThe biggest sticking point in the funding plan is IRS efforts to close the $600 billion "tax gap," the difference between what Americans owe and what they actually pay. To that end, the agency plans to higher more staff in order to ramp up auditing efforts on wealthy families, large corporations and business partnerships. What is clear, Smith says, is that corporations are likely to receive the "majority" of the uptick in IRS scrutiny.

☆ There's still time to claim your share of $1.5 billion in unclaimed tax refunds from 2019, IRS says
▼ + stars: | 2023-05-01 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The 2022 federal tax deadline has passed for most Americans, but another key date is approaching for past-due filers. If you're one of the nearly 1.5 million people with an unclaimed tax refund from 2019, the last chance to file your return is July 17, according to the IRS. There's a state-by-state breakdown of median potential refunds for 2019 here. "The 2019 tax returns came due during the pandemic, and many people may have overlooked or forgotten about these refunds," IRS Commissioner Danny Werfel said in a statement. With the 2019 tax deadline extended until July, Werfel said, many Americans, particularly lower earners such as students and part-time workers, may have accidentally skipped the filing.

☆ Took a huge hit on taxes this year? How investors can avoid a hefty bill next year
▼ + stars: | 2023-04-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Last year was a complex one for investors, as the sharp market decline seemingly left traders short of huge capital gains from dumping highly appreciated stocks. "It's counterintuitive to people: Why do I have a large capital gains distribution this year? Meanwhile, investments that you hold for more than a year are subject to long-term capital gains rates, which can be as high as 20%. This means you sell a losing position to offset capital gains elsewhere in the portfolio, thus reducing the tax hit. Meanwhile, in a traditional IRA, taxes are merely deferred, but withdrawals are subject to income taxes.

On that unredacted form, Kacsmaryk reported owning about $2.9 million in stock in the Florida-based supermarket company Publix. Federal judges are only required to report financial holdings in ranges, and don’t have to provide exact figures. One possible source of the Publix stock Kacsmaryk reported in 2017 is the judge’s grandmother. In 2020 and 2021, less than 4% of officials required to file judicial financial disclosures requested redaction, according to reports from the Administrative Office of the US Courts. In any case, experts said, the judge’s redacted report prevents transparency that litigants deserve.

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