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☆ Social Security beneficiaries to soon receive notices revealing the size of their 2025 benefit checks
▼ + stars: | 2024-11-20 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

Westend61 | GettyA new 2.5% cost-of-living adjustmentIn 2025, retirement benefits will increase by about $50 per month, on average, according to the Social Security Administration. Medicare Part B premiums are often deducted directly from Social Security checks. Beneficiaries can also request to have Medicare Advantage or Part D premiums deducted from Social Security benefit payments, according to Mary Johnson, an independent Social Security and Medicare analyst. Income changes may prompt higher taxesSocial Security beneficiaries may request to have withholding for federal taxes deducted from their benefit payments. Social Security benefits are taxed on a formula called combined income — the sum of adjusted gross income, nontaxable interest and half of Social Security benefits.

Persons: Joe Elsasser, Mary Johnson, Jim Blair, Brian Vosberg Organizations: Getty, Social Security Administration, Social Security, Medicare, Centers, Services, Social, Premier Social Security Consulting, Security, Vosberg Wealth Management Locations: Glendora , California

☆ Capital gains tax hikes 'entirely off the table' under President-elect Trump, Republican Congress, economist says
▼ + stars: | 2024-11-07 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Long-term capital gains rates apply to assets owned for more than one year. Higher capital gains tax rates, however, are "entirely off the table," under a Trump presidency and Republican-controlled Congress, said Erica York, senior economist and research manager with the Tax Foundation's Center for Federal Tax Policy. Even with partial Republican control, "it's most likely that capital gains tax policy just stays put where it is," York explained. For 2024, investors pay long-term capital gains rates of 0%, 15% or 20%, depending on taxable income. Combined with long-term capital gains taxes, higher earners currently pay up to 23.8% on investments.

Persons: Donald Trump, Jim Watson, Donald Trump's, Kamala Harris, Harris, Joe Biden's, Erica York, York, Howard Gleckman Organizations: U.S, Republican, Afp, Getty, Trump, Tax, Center, Federal Tax Policy, Republicans, Representatives, White, Urban, Brookings Tax Locations: Palm Beach

For 2025, the total contribution limit to Roth IRAs remains $7,000, unchanged from 2024, according to the IRS' announcement Friday. The IRS has unveiled the Roth individual retirement account contribution and income limits for 2025. Taxpayers using either of those filing statuses can make a full Roth contribution if their MAGI is under $150,000. For married couples filing jointly, the income phaseout range increased to between $236,000 and $246,000, up from between $230,000 and $240,000. Married couples filing jointly can make a full Roth contribution if their MAGI is under $236,000.

Persons: Roth Organizations: IRS, IRA

☆ 8 tax-reducing steps to take before 2024 ends, according to $2 trillion wealth manager BNY Mellon
▼ + stars: | 2024-09-29 | by ( Christine Ji | ) www.businessinsider.com time to read: +5 min

As 2024 draws to a close, now is the time for investors to review their tax strategy. AdvertisementWith October coming into view, it's a good time to sit down and review your tax strategy for 2024. On the other hand, high earners may want to defer investment income to minimize their net investment income tax (NIIT). Retirement considerationsBNY Mellon also said to consider maxing out your retirement accounts, such as a 401(k), traditional IRA, Roth IRA, and other plans. While this means you'll owe income tax on the money you convert, your assets will accumulate tax-free in the Roth IRA going forward, according to the note.

Persons: BNY Mellon, —, Mellon, Roth Organizations: BNY, Service, Mellon Wealth Management, Investors, Roth IRA

☆ Harris wants to raise the top capital gains tax rate to 28%. How that compares to recent history
▼ + stars: | 2024-09-10 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

As the election ramps up, many investors are focused on capital gains taxes and how proposals from both parties could impact their assets. Democratic presidential nominee Vice President Kamala Harris last week proposed a 28% tax on long-term capital gains, or profits from the sale of assets owned for more than one year, for those making more than $1 million annually. Her plan would also raise the net investment income tax, or NIIT, from 3.8% to 5%, The Wall Street Journal reported last week. If Harris proposes raising the NIIT to 5%, the combined rate would be 33% for top earners. Biden's plan would raise the combined rate to 44.6%.

Persons: Kamala Harris, Donald Trump, Sen, Bernie Sanders, NBC's, Harris, filers Harris, Joe Biden's Organizations: Democratic, Sunday, Finance, IRS, Street Locations: Milwaukee , Wisconsin, U.S, Bedminster , New Jersey

☆ Here are 3 smart crypto tax moves to consider — whether prices go up or down
▼ + stars: | 2024-07-30 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Weigh 'tax gain harvesting'Despite recent dips, many long-time crypto investors could have significant gains. Long-term capital gains rates apply to assets owned for more than one year. Of course, you'll need to weigh the tax consequences of boosting your adjusted gross income with crypto gains, which can impact other tax breaks. Consider the crypto wash sale 'loophole'If you're sitting on crypto losses, you could consider tax-loss harvesting, which allows you to offset other investing profits. Although tax-loss harvesting often happens at year-end, it's better to harvest crypto losses over time because "those losses may no longer exist" by year-end, Gordon explained.

Persons: bitcoin, Andrew Gordon, Adam Markowitz, Gordon Organizations: Getty, Gordon Law Group, Luminary, IRS Locations: Windermere , Florida

Your adjusted gross income, or AGI, is your total income minus specific deductions. Adjusted gross income FAQsHow do I determine my adjusted gross income (AGI)? What's the difference between gross income and adjusted gross income? Adjusted gross income is your gross income minus certain deductions and adjustments that you qualify for. Gross income is the total income from a company that includes all revenue and sources of income.

Persons: It's, MAGI Organizations: IRS Locations: Chevron

☆ Google search boss warns employees of 'new operating reality,' urges them to move faster
▼ + stars: | 2024-04-23 | by ( Jennifer Elias | ) www.cnbc.com time to read: +9 min

"If there's a clear and present market reality, we need to twitch faster, like the athletes twitch faster," he said. The spokesperson highlighted the addition of generative AI to search and improvements in search quality, adding, "There's lots more to come." In March, Google named company veteran Elizabeth Reid to the role of vice president, leading search and reporting to Raghavan. "We're in a new cost reality," Raghavan said. Demis Hassabis, Google's AI leader, said in February after the tool was taken down that it would be re-released in weeks.

Persons: Prabhakar Raghavan, Julia Nikhinson, Raghavan, Sundar Pichai, TikTok, dory, Elizabeth Reid, Ruth Porat, We've, Jonathan Raa, we've, they've, Demis, Bard, Pichai, That's Organizations: Google, US, Bloomberg, Getty, CNBC, Mazda, Microsoft, Google Gemini, Nurphoto, Union's, European Commission, Gemini Locations: Washington , DC, Mountain View , California, Silicon Valley, India, Brazil, Brussels, Belgium

☆ Oh look at that! Now Google is using AI to answer search queries.
▼ + stars: | 2024-04-15 | by ( Peter Kafka | ) www.businessinsider.com time to read: +7 min

AdvertisementThe upshot: For now, Google is testing out self-generated "AI overviews" for some regular search queries where it thinks the answer might be complex (but answerable). A Google rep told me the AI answers have been deployed in a "very limited percentage of search traffic" in the US and the UK. Screenshot/GoogleBecause I am A Responsible Journalist, I also asked Google how Google Magi, which powers these results, does or doesn't interact with the tech powering Google Gemini, its much-maligned "woke AI" chatbot. Right now, Google tries to keep you on Google by surfacing text from a site that purports to answer your query. AdvertisementOn the one hand, maybe Google becomes even more valuable because you're no longer even pretending it's a "search engine" — it's just an answer machine.

Persons: —, you've, Microsoft's Bing, truman, OpenAI, Bing, It's, Google's, You've, Jason Kelce's, Taylor Organizations: Google, Service, National Locations: vietnam

☆ Check out some of the art masterpieces in the record $300 million gift to a US university
▼ + stars: | 2024-03-16 | by ( Rebecca Rommen | ) www.businessinsider.com time to read: +4 min

An art collector donated the largest art gift ever to a US university, Seattle University said. Property developer Richard Hedreen donated a $300 million collection to the university. AdvertisementAn art collector has made the largest-ever art donation to a US university, Seattle University said in a press release earlier this week. Richard Hedreen gifted the private Jesuit university more than 200 works worth a total of $300 million to create the Seattle University Museum of Art. "My wife, Betty, attended Seattle University, and I am giving the collection to the university in her honor," Hedreen said.

Persons: Richard Hedreen, Roy Lichtenstein, —, Betty, Hedreen, Elizabeth, Seattle University Hedreen, Rashid Johnson seascape, Andy Warhol, Willem de Kooning, Lucien Freud, Dick, Betty Hedreen, Patrick J, Callans, Eduardo Peñalver, Giovanni TOSCANI, Amy Sherald, Pablo Picasso's, Gustav Klimt's, Fächer Organizations: Seattle University, Service, Jesuit, Seattle University Museum of Art, Roy Lichtenstein Seattle University, Trustees, Giovanni TOSCANI Seattle, Seattle University's Jesuit, Financial Times, Amy Sherald Seattle University Locations: Seattle

☆ These are the proposed changes to the child tax credit — and how much you could get
▼ + stars: | 2024-01-24 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Kate_sept2004 | E+ | Getty ImagesHouse lawmakers on Friday advanced a $78 billion bipartisan tax package, which includes temporary child tax credit changes that could affect millions of families this filing season. The plan temporarily expands access to the child tax credit with retroactive changes. Here's what to know about the proposed changes to the child tax credit as the opening of tax season, on Jan. 29, quickly approaches. How the child tax credit worksCurrently, the child tax credit is worth up to $2,000 per qualifying child under age 17 for 2023 and reduces your taxes on a dollar-for-dollar basis. How much the child tax credit could increaseIf enacted, the bipartisan tax bill would make several temporary changes to the child tax credit that could benefit the lowest-earning Americans, according to the Urban-Brookings Tax Policy Center.

Persons: Tommy Lucas, Moisand Fitzgerald Tamayo, Lucas, Chuck Marr Organizations: Getty Images, Urban, Brookings Tax, Center, Budget Locations: Orlando , Florida

☆ Watch for this 'phantom tax' before taking Affordable Care Act insurance subsidies, advisor says
▼ + stars: | 2023-11-16 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

d3sign | Moment | Getty ImagesAs millions of Americans compare health plans on the Affordable Care Act insurance marketplaces, experts say it's critical to run projections and rethink popular tax moves before enrolling in subsidies. The average enrollee is paying premiums of $124 per month after the subsidies, which were boosted through 2025 via the Inflation Reduction Act. If your actual income exceeds your estimates, you might be required to repay some or all of the subsidy. "If your actual income exceeds your estimates, you might be required to repay some or all of the subsidy." The subsidy eligibility calculation also considers your location, family size and whether you spouse has available coverage.

Persons: Tommy Lucas, Moisand Fitzgerald Tamayo, Lucas, Sean Lovison Organizations: Affordable, American, Center of Budget, Security, Philadelphia Locations: Orlando , Florida

☆ It's Not Guantanamo, Italy's Tajani Says, Defending Albania Migrant Camps
▼ + stars: | 2023-11-09 | by ( Nov. | At A.M. | ) www.usnews.com time to read: +1 min

PARIS (Reuters) - A deal that allows Italy to build migrant reception and detention camps in Albania respects European Union rules, Italy's foreign minister said on Thursday, dismissing suggestions they were an Italian Guantanamo Bay. Italian opposition parties have denounced Meloni's plans as a deportation, with Riccardo Magi, a lawmaker with the centrist +Europa group, evoking the notorious Guantanamo Bay extrajudicial camps used by the U.S. in Cuba to detain Islamist terrorism suspects. It's a normal humanitarian accord," Tajani said. The German government agreed to look into whether asylum procedures could be carried out outside the European Union, though Chancellor Olaf Scholz expressed scepticism on whether that was constitutionally possible and if countries would agree to it. (Reporting by John Irish; additional reporting by Alvise Armellini; editing by Nick Macfie)

Persons: Giorgia Meloni, Meloni's, Riccardo Magi, Antonio Tajani, It's, Tajani, Chancellor Olaf Scholz, John Irish, Alvise, Nick Macfie Organizations: PARIS, European, of Human Rights, Court, Justice, European Union Locations: Italy, Albania, Italian Guantanamo, U.S, Cuba, Guantanamo, Germany

Our experts answer readers' tax questions and write unbiased product reviews (here's how we assess tax products). Think about your taxes before the end of the year so you don't miss the opportunity to save come April. Here are three tax mistakes you don't want to make by the end of the year:1. As a result, you could end up owing additional tax plus interest and penalties. Not missing out on these tax moves can help with a smoother tax experience and may also save you money.

Persons: —, It's, Roth, you'll Organizations: Service, NEC, IRS

☆ What Is a Roth IRA and How Does It Work?
▼ + stars: | 2023-08-16 | by ( Tanza Loudenback | ) www.wsj.com time to read: +13 min

How does a Roth IRA work? “A Roth IRA offers investors a lot of flexibility which, in my opinion, is its biggest benefit,” says Eric Presogna, a financial planner in Erie, Pa.How is a Roth IRA different from a traditional IRA and from a 401(k)? The annual limits apply to traditional and Roth IRAs, in aggregate—meaning you can’t add more than the allowed amount to your traditional and Roth IRAs combined. High-income workers can use the “backdoor Roth” strategy to get money into a Roth IRA. How to fund a Roth IRAA Roth IRA typically needs to be funded before you can start choosing investments.

Persons: Roth, “ Roth, ”, David Edmisten, Internal Revenue Service doesn’t, you’re, Roth IRAs, we’ll, “, Eric Presogna, Nick Cantrell, don’t, posttax Roth, Cantrell, Zach Teutsch, brokerages, IRA —, ” Teutsch Organizations: IRA, Internal Revenue Service, Roth IRA, Washington , D.C, Fidelity, Vanguard, IRS, Financial Locations: Prescott, Ariz, Erie, Pa, Massachusetts, Washington ,

☆ 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

May 10 (Reuters) - Alphabet Inc's (GOOGL.O) Google on Wednesday began unveiling more artificial intelligence in its products to answer the latest competition from Microsoft Corp (MSFT.O), which has threatened its perch atop the nearly $300 billion search advertising market. He said Google is integrating generative AI into search. For years the top portal to the internet, Google has found its position in question since rivals began exploiting generative AI as an alternative way to present content from the web. That has represented a technological affront and a business one: Microsoft said every percentage point of share it gained in search advertising could draw another $2 billion in revenue. Pichai said earlier this year that generative AI to distill complex queries would come to Google Search, as would more perspectives, "like blogs from people who play both piano and guitar."

May 10 (Reuters) - Alphabet Inc's (GOOGL.O) Google on Wednesday is expected to unveil more artificial intelligence in its products to answer the latest competition from Microsoft Corp (MSFT.O), which has threatened its perch atop the nearly $300-billion search advertising market. For years the top portal to the internet, Google has found its position in question since rivals began exploiting generative AI as an alternative way to present content from the web. That has represented a technological affront and a business one: Microsoft said every percentage point of share it gained in search advertising could draw another $2 billion in revenue. Sundar Pichai, Alphabet's chief executive, this year said generative AI to distill complex queries would come to Google Search, as would more perspectives, "like blogs from people who play both piano and guitar." At Wednesday's conference, it is expected to announce a more powerful AI model known as PaLM 2, CNBC reported.

☆ Google plans to upgrade search with AI chat, video clips- WSJ
▼ + stars: | 2023-05-06 | by ( ) www.reuters.com time to read: +1 min

May 6 (Reuters) - Google is planning to make its search engine more "visual, snackable, personal, and human," with a focus on serving young people globally, the Wall Street Journal reported on Saturday, citing documents. The move comes as artificial intelligence (AI) applications such as ChatGPT are rapidly gaining in popularity, highlighting a technology that could upend the way businesses and society operate. At its annual I/O developer conference in the coming week, Google is expected to debut new features that allow users to carry out conversations with an AI program, a project code-named "Magi," WSJ added, citing people familiar with the matter. Google, part of Alphabet Inc., did not immediately respond to Reuters' request for comment. Reporting by Shivani Tanna in Bengaluru; Editing by Kim CoghillOur Standards: The Thomson Reuters Trust Principles.

☆ Google-parent stock drops on fears it could lose search market share to AI-powered rivals
▼ + stars: | 2023-04-17 | by ( Samantha Kelly | ) edition.cnn.com time to read: +4 min

CNN —Shares of Google-parent Alphabet fell more than 3% in early trading Monday after a report sparked concerns that its core search engine could lose market share to AI-powered rivals, including Microsoft’s Bing. In an effort to address the heightened competition, Google is said to be developing a new AI-powered search engine called Project “Magi,” according to the Times. Google’s search engine has dominated the market for two decades. That’s particularly true when it comes to search engines, a product that many use to find accurate and reliable information. “This is going to impact every product across every company and so that’s, that’s why I think it’s a very, very profound technology,” he said.

☆ After internal 'panic', Google is rushing to unveil a new AI-powered search engine to compete with Microsoft Bing, report says
▼ + stars: | 2023-04-16 | by ( Bethany Biron | ) www.businessinsider.com time to read: +2 min

Google is planning a new AI-powered search engine to compete with ChatGPT and Bing, the NYT reported. The company has been in a state of widespread "panic," per an internal email reviewed by the Times. Google is scrambling to release a new search engine as the artificial intelligence arms race continues to heat up, according to a report Sunday from the New York Times. According to documents obtained by the Times, Google is updating its existing search engine as part of a project called Magi. Threats to Google's long-held search engine dominance deepened when Microsoft teamed up with OpenAI to relaunch Bing in February.

☆ What Is Adjusted Gross Income?
▼ + stars: | 2023-03-05 | by ( ) www.wsj.com time to read: +11 min

Your adjusted gross income, or AGI, is your gross income—the sum of all your income sources for the year—less certain above-the-line deductions allowed by the Internal Revenue Service. Your adjusted gross income acts as a guidepost for several aspects of your finances. For instance, if you earned $55,000 from your job, rental income of $10,000 and dividend income of $630, your annual gross income would be $65,630. Here’s a tip: Your AGI will never be more than your gross income, and some taxpayers may find their gross income and AGI are the same. No conversation about adjusted gross income is complete without discussing modified adjusted gross income, or MAGI.

How much you pay (or don't) in taxes has the potential to shift what's possible in your overall plan. When it comes to your taxes, making mistakes can mean losing money. Thankfully for my financial planning clients, I catch some common missteps before they are made — that's one of the benefits of working with a certified financial planner. Using tax software can be a great solution that saves money when your financial situation is very simple and straightforward. Using a CPA can help you avoid mistakes that would cost far more than the fee you pay to retain them.

☆ Roth IRA 'five-year rule' can trigger an unexpected tax bill: Here's what you need to know
▼ + stars: | 2023-02-06 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Taxes on investment earnings are at "ordinary income" tax rates, not the preferential tax rates for capital gains. Roth IRA owners must have their account for at least five years to avoid paying income tax on any withdrawn investment earnings. Here's a simple example: Let's say a 60-year-old contributed $6,000 to a Roth IRA in January 2020. It's the saver's only Roth IRA and the first time they've contributed money to such an account. Who will 'never need to know the 5-year rule'Of course, not everyone is eligible to contribute to a Roth IRA.

☆ As a record 8.7% Social Security cost-of-living increase starts in 2023, here's what beneficiaries should look for in annual statements
▼ + stars: | 2022-12-11 | by ( Lorie Konish | ) www.cnbc.com time to read: +4 min

Kathrin Ziegler | Digitalvision | Getty ImagesMonthly Part B premium payments are often deducted directly from Social Security checks. Due to the lower 2023 premiums, beneficiaries are poised to see more of the 8.7% increase in their monthly Social Security checks. "Of course, the economy is inflated at a frightful rate, but this represents the value of cost-of-living adjusted benefits from Social Security," Freitag said. What to look for in your Social Security statementJustin Paget | Digitalvision | Getty ImagesIf you're wondering how much more you stand to see in your checks, the personalized letter from the Social Security Administration will give you a breakdown of what to expect. Of note, you do not necessarily have to be receiving Social Security checks now to benefit from the record 2023 increase, Blair noted.

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