Violetastoimenova | E+ | Getty Images House lawmakers are weighing relief for a “marriage penalty” that impacts the federal deduction limit on state and local taxes, known as SALT. While the bill doesn’t have broad support, it could help shape future tax policy discussions, experts say. Enacted via the Republicans’ 2017 tax overhaul, there’s currently … Read more
Image Source | Image Source | Getty Images As Americans file returns this season, some worry about IRS audits amid agency efforts to ramp up service, technology and enforcement. Recent IRS enforcement has targeted high-income individuals, large corporations and complex partnerships. But everyday filers could still face an audit — and certain issues are more … Read more
Artistgndphotography | E+ | Getty Images With tax season in full swing, the IRS has issued more than 2.6 million refunds worth about $3.65 billion, as of Feb. 2, the agency reported last week. So far, the average refund is $1,395, compared with $1,963 one year ago, which is roughly 29% smaller. However, since the … Read more
Witthaya Prasongsin | Moment | Getty Images If your tax refund or bill is bigger than expected, it could be time to adjust your paycheck withholding — and a simple calculation could help, experts say. Typically, you get a refund when you overpay taxes throughout the year, and you owe money when you don’t pay … Read more
Valentinrussanov | E+ | Getty Images If you’re eager to save money filing your taxes this season, there’s a free option that’s used by only a fraction of eligible taxpayers. Established in 2002, the program, known as IRS Free File, is a public-private partnership between the agency and the Free File Alliance, a nonprofit coalition … Read more
Filing taxes is more expensive this year as the industry raises prices to combat a growing accountant shortage. The cost of tax preparation and accounting fees grew 8.3% in November 2023 compared to the previous year, according to the U.S. Bureau of Labor Statistics. Taxpayers typically spend an average of $140 to file taxes every … Read more
Laylabird | E+ | Getty Images Tens of millions of Americans file tax returns every year — and many are missing a “valuable credit,” according to the IRS. In 2022, roughly 23 million filers received $57 billion from the earned income tax credit, or EITC, a tax break for low- to moderate-income workers. But nearly … Read more
U.S. Treasury Secretary Janet Yellen speaks at the International Brotherhood of Electrical Workers 357 union hall in Las Vegas on Aug. 14, 2023. Ronda Churchill | Bloomberg | Getty Images With the opening of tax season only days away, the IRS has unveiled a plan to simplify the millions of complicated notices sent to taxpayers … Read more
Jgi/tom Grill | Tetra Images | Getty Images Does your year-end bonus look smaller than expected? Tax withholding is a likely culprit, but Uncle Sam may pay some back when you file an annual tax return, experts said. Bonuses are treated as taxable income, like wages in a typical paycheck. However, unlike wages, the IRS … Read more
Catherine Falls Commercial | Moment | Getty Images The page has almost turned on 2023 — and that means time is running out to make certain tax moves by year’s end, or else risk missing out on their benefits. Here are some tax strategies to consider before ringing in the new year, according to advisors … Read more
