How to save above 401(k) deferral limits with after-tax contributions

If you’ve already maxed out 401(k) plan contributions for 2022 and you’re eager to save more for retirement, some plans have an under-the-radar option, experts say. For 2022, you can defer...

What investors need to know about the latest crypto tax reporting rules

Jose Luis Pelaez | Getty Images The IRS is sharing more details on how to report digital assets for the 2022 tax filing year, according to draft instructions. Since 2019, there’s been a yes or n...

Investors can contribute up to $22,500 in a 401(k) and $6,500 in IRAs in 2023

If you’re eager to save more for retirement in 2023, there’s good news from the IRS: higher limits for your annual 401(k) plan and individual retirement account contributions. The employee...

How much income you can have for 0% capital gains taxes in 2023

If you’re planning to sell investments or rebalance your taxable portfolio, you may be less likely to trigger a tax bill in 2023, experts say. This week, the IRS released dozens of inflation adj...

Here are the new income tax brackets for 2023

Andersen Ross | Blend Images | Getty Images Amid soaring inflation, the IRS this week announced higher federal income tax brackets and standard deductions for 2023. The agency has boosted the income t...

Here’s how to pay 0% capital gains taxes with a six-figure income

Luminola | E+ | Getty Images It’s natural to fixate on portfolio losses, especially with the S&P 500 down more than 20% for the year. But you may still have gains after years of growth, and ...

How to use your required minimum distributions for unpaid taxes

Portra | E+ | Getty Images If you’re retired and haven’t made the necessary quarterly estimated tax payments for 2022, there may still be time to avoid late penalties, experts say. Retiree...

Here’s how advisors are helping clients reduce their 2022 tax bill

Hero Images | Hero Images | Getty Images Weigh Roth IRA conversions With the S&P 500 Index down more than 20% in 2022, many investors are eyeing Roth individual retirement account conversions, whi...

Here’s how to pick the best charitable giving strategy

Catherine Mcqueen | Moment | Getty Images It’s easy to transfer cash when a charity pulls at your heartstrings. But other giving strategies may provide a bigger tax break, financial experts say....

The extended tax deadline is Oct. 17. Here’s what filers need to know

Cecilie Arcurs | Getty Images There’s about one month until the Oct. 17 tax deadline extension, and experts say filers need to prepare, especially for more complicated returns. An estimated all-...

How to avoid a penalty by making quarterly tax payments by Sept. 15

If you haven’t been sending part of your income to the IRS in recent months, this week is the last chance to avoid a tax penalty. The deadline for third-quarter estimated taxes is Sept. 15, appl...

13 states may hit borrowers with state tax liability on forgiven student loans

President Joe Biden‘s student loan forgiveness plan will soon cancel debt for millions of Americans — and the relief is tax-free on federal returns. However, experts say the cancellation may sti...

IRS refunding $1.2 billion in late-filing fees for nearly 1.6 million

Ekaterina Goncharova | Moment | Getty Images The IRS on Wednesday announced it will waive penalties for many Americans who late-filed tax returns during the pandemic. Nearly 1.6 million filers will au...

IRS interest jumps on Oct. 1. How much you’ll get for a missing refund

How to calculate your interest The interest is an annual rate compounded daily, meaning you divide the 6% rate by 365, explained Tommy Lucas, a certified financial planner and enrolled agent at Moisan...

With 87,000 new agents, here’s who the IRS may target for audits

Jeffrey Coolidge | Photodisc | Getty Images As the Democrats’ spending plan moves closer to a House vote, one of the more controversial provisions — nearly $80 billion in IRS funding, with $45.6...

House Democrats push for Biden’s billionaire minimum income tax

Erik McGregor | LightRocket | Getty Images As Democrats plow forward with a slimmed-down reconciliation package, House lawmakers are separately pushing another piece of President Joe Biden‘s age...

Mega Millions jackpot is $790 million. If it’s won, here’s tax bill

Scott Olson | Getty Images If you manage to beat the odds and land the next Mega Millions jackpot, don’t forget that Uncle Sam will snatch a slice of the windfall. The top prize has surged to $7...

The wealthy now have more time to avoid estate taxes

If your family has significant wealth, it’s now easier to avoid federal estate taxes, thanks to recent changes from the IRS. The IRS improved a strategy known as “portability,” used ...

These 4 mid-year tax strategies can trim next year’s bill from the IRS

seksan Mongkhonkhamsao | Moment | Getty Images 1. Review tax withholdings When starting a new job, you fill out Form W-4, covering how much your employer withholds from your paychecks for federal taxe...

IRS boosts mileage rate deductions as gas prices soar to $5 a gallon

Guy Benhamou sends a picture of gas prices to friends while pumping gas at an Exxon Mobil gas station on June 9, 2022 in Houston. Brandon Bell | Getty Images If you’re self-employed or own a sma...

Tax-loss harvesting turns losses into gains. Here’s when to skip it

When the stock market dips, a strategy known as tax-loss harvesting can be a silver lining. But it doesn’t make sense for all portfolios, financial experts say.   Here’s how tax-loss harve...

IRS working to boost audit rates for higher earners

Jeffrey Coolidge | Photodisc | Getty Images The IRS is working to boost its audit rates for the wealthiest Americans, according to a statement recently released with the agency’s annual Data Boo...

Still missing your tax refund? You’ll soon receive 5% interest

Bill Oxford | E+ | Getty Images If you’re still waiting for a tax refund, there’s a silver lining: it may be accruing interest, and the rate jumps to 5% from 4% on July 1, according to the...

Tax breaks aren’t prime reason for high-net-worth philanthropy

Maria Teijeiro | OJO Images | Getty Images Tax breaks aren’t the primary incentive for philanthropy among the ultra-wealthy, according to BNY Mellon Wealth Management’s inaugural Charitabl...

IRS insists destruction of taxpayer data won’t affect payers

alfexe | iStock | Getty Images Filers won’t be affected by the IRS decision to destroy data for millions of taxpayers, the agency said in a statement Thursday. The IRS tossed an estimated 30 mil...

Tax pros ‘horrified’ by IRS decision to destroy data on 30 million filers

courtneyk | E+ | Getty Images An audit by the Treasury Inspector General for Tax Administration revealed the IRS has tossed data for millions of payers, sparking anger from the tax community. The mate...

Over 60 million tax returns could be completed automatically, study says

Tom Werner | DigitalVision | Getty Images The IRS may have the ability to automate nearly half of tax returns, according to a working paper from the National Bureau of Economic Research. The agency co...

Here’s what to do if you missed the April 18 tax filing deadline

Sergey Mironov | Moment | Getty Images If you missed the April 18 tax deadline, you may cut back on penalties by filing your return promptly, according to the IRS.  While it’s too late to reques...

What we learned from Biden, Harris tax returns, according to experts

President Joe Biden and Vice President Kamala Harris after Biden signed H.R. 55, the “Emmett Till Antilynching Act,” in Washingtonon March 29, 2022. Samuel Corum | Bloomberg | Getty Images...

How companies like Amazon, Nike and FedEx avoid paying federal taxes

The current United States tax code allows some of the biggest company names in the country to not pay any federal corporate income tax. In fact, at least 55 of the largest corporations in America paid...

There’s a growing interest in wealth taxes on the super-rich

Sen. Ron Wyden, D-Ore., speaks during a Senate Finance Committee nomination hearing on Feb. 23, 2021. Greg Nash | Pool | Reuters Americans increasingly favor a wealth tax on the ultra-rich. But despit...

Many Americans face big tax bills on 2021 unemployment benefits

A Miami-Dade County job fair in Miami on Dec. 16, 2021. Eva Marie Uzcategui/Bloomberg via Getty Images Many Americans who collected unemployment benefits in 2021 may be on the hook for big bills this ...