DIRS.INFO The most relevant business & tech news

☆ Don't wait to find a tax preparer for 2025: Why one expert would '100% recommend starting now'
▼ + stars: | 2024-10-21 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Leopatrizi | E+ | Getty ImagesMost tax preparers don't have credentialsDespite the talent shortage, vetting is important because "pretty much anyone can call themselves a tax preparer," Young said. There are no federal licensing or competency requirements, and some paid preparers have no training or experience, the report noted. Under current law, the minimum requirement for paid professionals is an IRS-issued preparer tax identification number, or PTIN. Free preparation options like Volunteer Income Tax Assistance, or VITA, and Tax Counseling for the Elderly, or TCE, also have competency standards. How to vet your tax preparerUnlike big box preparers, many tax professionals don't accept walk-in traffic and operate mainly by referral, according to Tom O'Saben, an enrolled agent and director of tax content and government relations at the National Association of Tax Professionals.

Persons: Young, preparers, Tom O'Saben Organizations: Getty, IRS, National Taxpayer, National Association of Tax

☆ Surge in active ETFs has been 'remarkable,' analyst says. How to know if it's right for your portfolio
▼ + stars: | 2024-10-18 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

But there has been a surge in actively managed ETFs as investors seek lower costs and more precision, experts say. Active ETFs represented just more than 2% of the U.S. ETF market at the beginning of 2019. There are a few reasons for the active ETF growth, experts say. Still, only a fraction of issuers have been successful in the active ETF market. Active ETFs allow 'tactical adjustments'While passive ETFs replicate an index, such as the S&P 500 , active managers aim to outperform a specific benchmark.

Persons: Morningstar, Stephen Welch, Welch, Jon Ulin Organizations: Getty, Exchange, U.S, Morningstar, U.S . Securities, Exchange Commission, Ulin, Wealth Management Locations: Boca Raton , Florida

☆ Inherited IRA rules are changing in 2025 — here's what beneficiaries need to know
▼ + stars: | 2024-10-17 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Jacob Wackerhausen | Istock | Getty ImagesWhat to know about the 10-year ruleBefore the Secure Act of 2019, heirs could "stretch" inherited IRA withdrawals over their lifetime, which helped reduce yearly taxes. But certain accounts inherited since 2020 are subject to the "10-year rule," meaning IRAs must be empty by the 10th year following the original account owner's death. The rule applies to heirs who are not a spouse, minor child, disabled, chronically ill or certain trusts. Since then, there's been confusion about whether the heirs subject to the 10-year rule needed to take yearly withdrawals, known as required minimum distributions, or RMDs. After years of waived penalties, the IRS in July confirmed certain heirs will need to begin yearly RMDs from inherited accounts starting in 2025.

Persons: Jacob Wackerhausen, there's, Dickson, Judson Meinhart Organizations: Istock, Vanguard, Modera Wealth Management Locations: Winston, Salem , North Carolina

☆ Key change coming for 401(k) ‘max savers’ in 2025, expert says — here's what you need to know
▼ + stars: | 2024-10-16 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Aire Images | Moment | Getty ImagesHigher 401(k) catch-up contributionsEmployees can now defer up to $23,000 into 401(k) plans for 2024, with an extra $7,500 for workers age 50 and older. But starting in 2025, workers aged 60 to 63 can boost annual 401(k) catch-up contributions to $10,000 — or 150% of the catch-up limit — whichever is greater. An estimated 15% of eligible workers made catch-up contributions in 2023, according to Vanguard's 2024 How America Saves report. Roth catch-up contributionsAnother Secure 2.0 change will remove the upfront tax break on catch-up contributions for higher earners by only allowing the deposits in after-tax Roth accounts. That means workers can still make pretax 401(k) catch-up contributions through 2025, regardless of income.

Persons: Jamie Bosse, Vanguard's Stinnett, Roth Organizations: IRS, CGN Advisors, America, Vanguard Locations: Manhattan , Kansas

☆ Here's what to do if you still can't pay taxes on the Oct. 15 tax extension deadline
▼ + stars: | 2024-10-15 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The tax extension deadline has arrived and there are options if you still can't pay your balance, tax experts say. About 19 million U.S. taxpayers filed for an extension by the April 15 tax deadline, which bumped the filing due date to Oct. 15. However, for federally declared disasters after April 15, filers were not granted more time to pay their tax bill. Penalties and interest on unpaid balances started accruing after the April 15 deadline. If you missed the tax deadline, the late payment penalty is 0.5% of your unpaid balance per month or partial month, capped at 25%.

Persons: filers, Josh Youngblood Organizations: Finance, Youngblood Locations: Dallas

☆ Some hurricane victims can get a tax break for losses — Here's what you need to know
▼ + stars: | 2024-10-15 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

You also need to know how much the fair market value declined due to the disaster, she said. How to calculate the casualty loss deduction 1. Congress approves 'qualified disaster losses'In certain cases, "qualified disaster losses" are eligible for special rules, but "that's driven by Congressional action," according to Brennan. When there's a qualified disaster loss, the $100 rises to $500, there is no 10% AGI limit and victims can add their loss on top of the standard deduction. "AICPA has been actively advocating for permanent uniform tax relief for all victims of disasters since 2021 — for almost four years now — because we have this inconsistent treatment," she said.

Persons: David Hester, Hurricane Helene, Chandan Khanna, Mark Luscombe, Beth Brennan, Brennan, You'll, there's, AICPA Organizations: Afp, Getty, Wolters Kluwer, Accounting, American Institute of Certified Public Accountants, Congress Locations: Horseshoe Beach , Florida

In 2025, millions of retired Americans will see a 2.5% cost-of-living adjustment for benefit payments, according to the Social Security Administration. The Social Security Administration on Oct. 10 unveiled a higher threshold for earnings subject to Social Security payroll taxes, known as the “taxable maximum” or “wage base.”The limit shifts annually based on the national average wage index. How the Social Security tax calculation worksThe Social Security payroll tax rate is 12.4%, with workers paying 6.2% through paycheck deductions. Concerns over Social Security solvencyThe latest Social Security adjustments come amid growing concerns about the program’s solvency. In the meantime, some advocates have pushed to increase the Social Security wage base to provide more funding.

Persons: Sean Lovison, “, Lovison, ’, Alicia Munnell Organizations: Social Security Administration, Social, Social Security, Medicare, Security, Center for Retirement Research, Boston College Locations: Philadelphia

☆ Investors face delays moving certain assets from TreasuryDirect
▼ + stars: | 2024-10-11 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

As investors revisit bonds amid falling interest rates, some are encountering longer waits to transfer certain assets purchased via TreasuryDirect, a platform run by the U.S. Department of the Treasury. TreasuryDirect, which sells government-backed assets, experienced a surge in demand in recent years as investors flooded into Series I bonds that offered record-high yields amid elevated inflation. Now, other assets, such as Treasurys, are taking longer to transfer from TreasuryDirect to brokerage accounts. When asked about wait times, the spokesperson said it "depends more on complexity than capacity" and that processing times are "well under one year right now and declining daily." The agency aims to "modernize the retail program in the future" and is designing solutions "with the customer in mind," the spokesperson said.

Organizations: U.S . Department of, Treasury, Street, Finance, Social, Administration, Fiscal Service, CNBC Locations: TreasuryDirect, Treasury's

As the Federal Reserve cuts interest rates, investors should review their bond portfolio, which could see a boost from dovish Fed policy. Typically, bond prices and market interest rates move in opposite directions. While it may be tempting to cling to cash, it will become “less attractive, less productive as interest rates fall,” Ward said. Many corporations leveraged rock-bottom interest rates during the pandemic to strengthen balance sheets and refinance debt, said Ward. As interest rates fall, those longer-maturity bonds should reward investors, experts say.

Persons: ”, Scott Ward, ” Ward, Ted Jenkin, Ward, “, Jenkin Organizations: Federal Reserve, dovish Fed, Fed, Morningstar, Bond, CNBC’s Locations: Birmingham , Alabama, Atlanta, “

☆ As interest rates fall, it's a 'fantastic time' to revisit bonds, advisor says — here's why
▼ + stars: | 2024-10-09 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

As the Federal Reserve cuts interest rates, investors should review their bond portfolio, which could see a boost from dovish Fed policy. However, the Fed policy shift could be good for parts of the bond market, experts say. Typically, bond prices and market interest rates move in opposite directions. "This is a fantastic time to revisit bonds again," said certified financial planner Scott Ward, senior vice president of Compound Planning in Birmingham, Alabama. While it may be tempting to cling to cash, it will become "less attractive, less productive as interest rates fall," Ward said.

Persons: Scott Ward, Ward Organizations: Federal Reserve, dovish Fed, Finance, SEC, Fed Locations: Birmingham , Alabama

☆ Your tax bracket may increase after 2025. Here's how it could affect your brokerage account
▼ + stars: | 2024-10-08 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Without action from Congress, trillions of tax breaks enacted by former President Donald Trump will expire after 2025, including lower federal income tax brackets, among other provisions. Higher rates after 2025 could impact some brokerage accounts since investors pay annual taxes on earnings, experts say. If you sell investments that you have owned for one year or less, the profits incur "short-term capital gains," or regular income taxes. Generally speaking, it's good to avoid short-term gains as much as you can. Actively managed mutual funds often trigger capital gains payouts, even when investors haven't sold shares, which can be a costly year-end surprise.

Persons: Donald Trump, Samantha Pahlow, Ferguson Wellman, Shea Abernethy, haven't, Abernethy, Tommy Lucas, Moisand Fitzgerald Tamayo Organizations: Ferguson, Ferguson Wellman Capital Management, Exchange, Investment Counselors Locations: Portland , Oregon, Winston, Salem , North Carolina, Orlando , Florida

☆ For retirees, here's what to do with required withdrawals when you don't need the money
▼ + stars: | 2024-10-07 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Skynesher | E+ | Getty ImagesFor some retirees, the deadline to take required withdrawals from retirement accounts is approaching — and those who don't need the money have options, experts say. Since 2023, most retirees must take required minimum distributions, or RMDs, from pre-tax retirement accounts starting at age 73. Brokerage assets could be subject to capital gains taxes, whereas pre-tax retirement funds incur regular income taxes. Unlike mutual funds, most ETFs don't distribute capital gains payouts, which can save brokerage account investors on annual taxes. There's no charitable deduction, but QCDs don't count toward adjusted gross income, meaning retirees don't need to itemize tax breaks to claim it.

Persons: Judy Brown, you'll, Berkemeyer, You'll, Karen Van Voorhis, Daniel J, Galli, QCDs, It's Organizations: SC, H, D.C, Abrin, Goodman Financial, Galli & Associates, Galli & Locations: Washington, Baltimore, Houston, Norwell , Massachusetts

☆ IRS free tax filing will be available in 24 states for the 2025 season — here's who can use it
▼ + stars: | 2024-10-03 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Internal Revenue Service Commissioner Danny Werfel testifies before the House Appropriations Committee on Capitol Hill on May 07, 2024 in Washington, DC. Kevin Dietsch | Getty Images News | Getty ImagesWho can use IRS Direct File"This year, taxpayers in Direct File's 24 states will see far more tax situations covered than during last year's pilot," and the program will be available at the opening of tax season, IRS Commissioner Danny Werfel said Thursday on the press call. Next season, Direct File will also support interest income above $1,500, pension and annuity income (excluding individual retirement accounts) and Alaska Permanent Fund Dividends. The IRS and Treasury in May unveiled a nationwide Direct File expansion and invited all 50 states to join the program. During the pilot, more than 140,000 users filed returns and saved an estimated $5.6 million in tax preparation fees, the agencies said in April.

Persons: Danny Werfel, Kevin Dietsch Organizations: Revenue, Capitol, Getty, Social, NEC, Fund, IRS, Treasury Locations: Washington , DC, Alaska

☆ Buffer ETFs can shield investors from some losses. Here's what to know before investing
▼ + stars: | 2024-10-03 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Buffer ETFs, also known as defined-outcome ETFs, use options contracts to offer investors a pre-defined range of outcomes over a set period. As of August 2024, there were 327 buffer ETFs, representing more than $54.8 billion in assets, up from 73 such ETFs and roughly $4.6 billion in August 2020, according to data from Morningstar Direct. For example, a buffer ETF could shield investors from the first 10% of losses while limiting upside returns to 15%. Another downside is the assets have higher fees than traditional ETFs, with 0.8% for the average buffer ETF compared to 0.51% for the average ETF, Armour said. The benefits of buffer ETFs

Persons: Jordi Mora Igual, Bryan Armour, Armour Organizations: North America, Morningstar, Morningstar Direct

☆ 'Heartstopper' star Yasmin Finney on filming her first sex scene and ignoring online haters
▼ + stars: | 2024-10-02 | by ( Max Gao | Max Gao Is A Freelance Entertainment | Sports Journalist Based In Toronto. He Has Written For Nbc News | ) www.nbcnews.com time to read: +9 min

I think that’s quite rare to have that, but I feel quite protected with the ‘Heartstopper’ fan base,” Finney said on a recent video call from her flat in London. Yasmin Finney and Will Gao in a scene from the Netflix series "Heartstopper." It is keyboard warriors on their phone, with a box of KFC, who are just like, ‘Oh, I hate trans people,’” Finney said. “When I finished filming season three [of ‘Heartstopper’], I just really realized that the roles that I’m getting are mostly trans. I kind of had this yearning for a connection with another kind of role,” Finney said, noting that she is still looking for that particular part.

Persons: Elle Argent, “, ” Yasmin Finney, Finney, Who, —, “ I’ve, ” Finney, Alice Oseman’s, Joe Locke, Kit Connor, Elle, Tao Xu, William Gao, Tao, ’, ”, Xu, Yasmin Finney, Will Gao, Samuel Dore, that’s, I’m, Russell T, Davies, Ncuti Gatwa, Rose Noble, Donna Noble, Catherine Tate, Rose, David Tennant, ’ ” Finney, “ I’m, Oseman, Heartstopper ” Organizations: Elle, Netflix, BBC, KFC Locations: United Kingdom, London, people’s, Manchester

☆ Why your Roth IRA conversions could have 'unintended' tax consequences
▼ + stars: | 2024-10-02 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

As year-end approaches, you may be eyeing Roth individual retirement account conversions. The strategy, however, boosts your income, which can have other tax consequences, experts say. Roth conversions shift pretax or nondeductible IRA funds to a Roth IRA, which provides future tax-free growth. Otherwise, you could lose eligibility for certain tax breaks or unexpectedly trigger tax hikes. Here are a couple of other major tax issues to watch, experts say.

Persons: eyeing Roth, Roth, JoAnn May, Helene Organizations: Roth IRA, Asset Management, Finance, Social Locations: Riverside , Illinois

If you're bracing for year-end mutual fund distributions, swapping assets for exchange-traded funds could sidestep the capital gains payout for 2024 and beyond. Some mutual funds distribute yearly capital gains to shareholders, typically in November and December. By comparison, most ETFs don't have an annual payout, which helps reduce ongoing taxes. Typically, investors incur capital gains when trading profitable mutual funds for ETFs in a brokerage account. Depending on their income, certain investors can "capital gain harvest" — strategically selling profitable assets while in a lower tax bracket — to swap mutual funds for ETFs, said Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida.

Persons: Tommy Lucas, Moisand Fitzgerald Tamayo Locations: Orlando , Florida

☆ Investors should still keep emergency funds liquid after the Fed's interest rate cut, advisor says
▼ + stars: | 2024-09-25 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

After years of higher yields on cash, the Federal Reserve's shifting policy means lower future returns on savings, certificates of deposit and money market funds. Despite falling rates, investors should still keep emergency funds "liquid," meaning the cash can be easily tapped, financial experts say. Banks use the federal funds rate to lend to and borrow from one another. Meanwhile, the biggest retail money market funds were still paying around 5%, as of Sept. 24, according to Crane Data. If you have been earning 4% to 5% on emergency savings, you could see a "small reduction" in the short term, said Kenealy, who recommends keeping emergency funds where they are.

Persons: Kathleen Kenealy, Banks, Kenealy Organizations: Finance, Data Locations: Woburn , Massachusetts

☆ The tax extension deadline is Oct. 15. Here's what to do if you still can't pay your balance
▼ + stars: | 2024-09-24 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The tax extension deadline is Oct. 15, but you have options if you still can't pay your balance, experts say. This year, the federal tax deadline was April 15. But while the tax extension provided more time to file, 2023 taxes were due April 15. In the meantime, unpaid taxes continue to accrue IRS penalties and interest. By comparison, the failure-to-file penalty is 5% of unpaid taxes per month or partial month, up to 25%.

Persons: Josh Youngblood Organizations: Youngblood, Finance Locations: Dallas

☆ Your inherited individual retirement account could trigger a 'tax bomb,' advisor says. How to avoid it
▼ + stars: | 2024-09-17 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

If you've inherited a pretax individual retirement account since 2020, you could face a sizable tax bill without proper planning, experts say. Previously, heirs could take inherited IRA withdrawals over their lifetime, known as the "stretch IRA." The 10-year rule can mean higher yearly taxes for certain heirs, particularly for higher earners with bigger IRA balances. Shortening the 10-year withdrawal window can compound the issue, experts say. For example, Smith has seen people lose eligibility for the electric vehicle tax credit, worth up to $7,500, by taking a large inherited IRA withdrawal in a single year.

Persons: you've, Ben Smith, Smith Organizations: Financial, Finance, Vanguard Locations: Milwaukee

☆ This 'back of the napkin math' shows whether you could have a surprise tax bill, expert says
▼ + stars: | 2024-09-16 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

If your gross income and tax situation has not changed from last year, you are likely to owe a similar amount for 2024, Lucas explained. If you have paid roughly 75% of last year's total taxes by the end of September, "you're going to be pretty darn close, assuming everything is the same as the prior year," he said. In those scenarios, you will need a more in-depth analysis to double-check your 2024 withholding, he said. IRS tax withholding estimatorIf your tax situation changed this year, experts recommend periodically using a free tool from the IRS, known as the "tax withholding estimator." watch nowAlternatively, you could make payments directly to the IRS to cover your 2024 tax shortfall, Lucas said.

Persons: Lucas, you've, Mark Steber, Jackson Hewitt Organizations: Bank, Getty, IRS

The third-quarter estimated tax deadline for 2024 is Sept. 16, and skipping a payment could trigger a penalty, according to the IRS. Some filers also need estimated payments if they haven’t withheld enough taxes from a full-time or part-time job. Estimated payments can help avoid “refund disappointment or balance due shock,” said Mark Steber, chief tax information officer of Jackson Hewitt. For 2024, the quarterly estimated tax deadlines are April 15, June 17, Sept. 16 and Jan. 15, 2025. You can use your online account, IRS Direct Pay or the U.S. Department of the Treasury’s Electronic Federal Tax Payment System, or EFTPS.

Persons: ”, Mark Steber, Jackson Hewitt, there’s, Tricia Rosen, Virgin Organizations: Taxpayers, IRS, U.S . Department Locations: Newburyport , Massachusetts, Puerto Rico

☆ IRS: This 'rule of thumb' shows who needs to make a third-quarter estimated tax payment by Monday
▼ + stars: | 2024-09-13 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The third-quarter estimated tax deadline for 2024 is Monday, Sept. 16, and skipping a payment could trigger a penalty, according to the IRS. Typically, you need estimated payments for any income without tax withholdings, such as earnings from self-employment, contract or gig economy work and investment or retirement income. Some filers also need estimated payments if they haven't withheld enough taxes from a full-time or part-time job. Estimated payments can help avoid "refund disappointment or balance due shock," said Mark Steber, chief tax information officer at Jackson Hewitt. You can find adjusted gross income on line 11 of Form 1040 from your 2023 tax return.

Persons: Mark Steber, Jackson Hewitt, — Organizations: Finance, Security Locations: Washington

☆ Senate debates taxes ahead of Trump’s 2025 expirations. It's a ‘make-or-break moment,' lawmaker says
▼ + stars: | 2024-09-12 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

With trillions in tax breaks scheduled to expire after 2025, lawmakers are debating policy priorities that could impact millions of families and small businesses. Enacted by former President Donald Trump in 2017, the Tax Cuts and Jobs Act, or TCJA, made sweeping tax changes, including temporary provisions that will sunset after 2025 without action from Congress. Some of the expiring TCJA provisions include lower federal income tax brackets, bigger standard deductions, a more generous child tax credit, higher gift and estate tax exemptions and a 20% tax break for pass-through businesses, among others. "This will be a make-or-break moment for the federal budget and for America's middle class," Senate Finance Committee Chairman Ron Wyden, D-Ore., said in a prepared statement at a Senate hearing on Thursday. In the meantime, lawmakers and organizations are voicing support for certain tax issues before the 2025 deadline.

Persons: Donald Trump, Ron Wyden, — Organizations: Finance, Tax, White House

☆ Avoid 'knee-jerk reactions' to candidates' proposed tax increases, financial advisors say. Here's why
▼ + stars: | 2024-09-11 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

With fewer than 60 days until the election, investors may feel stressed by the flurry of tax policy proposals. Democratic presidential nominee Vice President Kamala Harris has plans for middle-class tax cuts while raising levies on the wealthiest Americans and corporations. Meanwhile, former President Donald Trump, the Republican nominee, aims to extend tax breaks enacted during his first term and end taxes on Social Security benefits. How it compares to recent historyBut there's a big difference between a candidate's tax idea or proposal and signed legislation. "All sorts of things are in presidential budgets that don't get enacted," said CFP and financial therapist Rick Kahler, president of Kahler Financial Group in Rapid City, South Dakota.

Persons: Donald Trump, Kamala Harris, Trump, Louis Barajas, —, Harris, Rick Kahler Organizations: Republican, Democratic, U.S, New York Young Republican Club, Social Security, International Private Wealth, Finance, Kahler Locations: New York City, U.S, Irvine , California, Rapid City , South Dakota

Search resuls for: "dore"

25 mentions found