The Treasury Department announced Monday that it would not be moving the tax-filing deadline for a second time, despite some pressure to do so because of the coronavirus pandemic.
After considering an additional postponement, the agency said the evening that it is sticking with the current July 15 deadline and that people who need more time can ask for a normal extension that would give them until mid-October to complete their returns.
An extension would give taxpayers until Oct. 15 to file their returns, though they would still have to pay what they owe by July 15 to avoid interest and penalties.
Social Security recipients who don’t usually file tax returns will automatically get $1,200 payments, Treasury says in reversal.
The Treasury announced late Wednesday that Social Security beneficiaries who typically do not file a tax return will automatically get the $1,200 payment.
The announcement is a reversal from earlier in the week when the Internal Revenue Service said everyone would need to file some sort of tax return in order to qualify for the payments. Democrats and some Republicans criticized the IRS for requiring so many extra hurdles for this vulnerable population to get aid when the government already has their information on file.
The reversal came as the Trump administration tries to rapidly get stimulus payments out to Americans in the face of the quickest economic decline in modern history.
House and Senate pass $2 trillion coronavirus bill as problems for households and businesses continue to mount
Stimulus For Households:
More than 150 million households would receive checks under the legislation, which will send payments of $1,200 to many individual Americans plus $500 for children. People with incomes above $99,000 are not eligible, and the total benefit is phased out for people earning between $75,000 and $99,000.
The direct payments would fluctuate depending on the income a person reported on their 2018 taxes, according to a copy of the bill.
Here's how much you'll get based on income:
When I graduated from college, I quickly realized one fact. I wanted to retire by the age of 50. I thought at the time I should save and have a million dollars in the bank for my dream to become a reality. But realized the second fact quickly. Working a 9-5 alone would not yield my desired results. Thus my love for investing started.
Striving to be a millionaire sounds good, but if you do the mat,h it's not that impressive any more thanks to inflation. If you retired today at 65 with $1 million and no Social Security, you’d only be able to spend $40,000 – $50,000 a year for 25 years until you’d likely run out of money. Goodness forbids you don’t face any exorbitant medical expenses, either.
The minimum wage in America is now between $8 – $15 an hour, and gas is anywhere from $3.3 – $4.2 a gallon depending on where and what type you get. I think it’s interesting that the minimum wage...
Get out your pencils and calculators: The IRS has released a breakdown of what's ahead for the 2020 tax year.
Taxpayers who've been paying close attention will notice that the Tax Cuts and Jobs Act overhauled the tax code.
Those sweeping changes include a higher standard deduction — it's now $12,400 for singles and $24,800 for married joint filers in 2020. Following the overhaul, individual income tax rates also went down, and personal exemptions were eliminated.
For the 2020 tax year, the IRS tweaked the individual income tax brackets, adjusting them for inflation.
See below for your new bracket.
Your retirement savings
The taxman is also allowing you to save a few more dollars in 2020.
The IRS has raised the employee contribution limit for 401(k), 403(b) and most 457 plans to $19,500, up from $19,000 in 2019.
If you're 50 or older, you can sock away another $6,500 in that workplace retirement plan. That's up from $6,000 in 2019.
The contribution limit for individual...
Tax refunds are lower this year. Here's what to do.
There’s some good news for anyone worried about owing Uncle Sam this year: You still have time to lower your 2018 taxable income before the April 15 filing deadline. Certain tax deductions are retroactive and there are a few tricks that can maximize your refund.
Here are five ways to lower your 2018 taxable income (or reduce what you owe) before you file your tax returns this year.
1. Make an IRA contribution
Your ability to make tax-deductible contributions to individual retirement accounts for tax year 2018 didn’t expire on Dec. 31. Instead, you can make retroactive contributions to a traditional IRA up until April 15, 2019.
You can make deductible prior-year contributions up until the tax filing deadline, as long as your total contributions aren’t over $5,500. The catch-up contribution limit for taxpayers over 50 is $6,500. If you have a SEP IRA, your contributions can’t exceed $55,000 or 25% of...
You don't have to own a small island or a luxury jet to take a (legal) hint from how millionaires and billionaires protect their money from taxes. Here are three ways you can navigate your own taxes like the wealthy do:
Assess your taxable income
Your first step is to know how you are being taxed, especially because the new tax laws are in effect for 2018. Taxable income is whatever money you made during the year, minus deductions or exemptions. It includes your salary, wages, bonuses, tips, and investment and unearned income.
Close to dropping a bracket? The big breaks in the new tax bill for married taxpayers filing jointly is below $77,400 (12% vs. 22%) and below $315,000 (24% vs. 32%).
If you do find yourself on the edge of a bracket (or not), look for opportunities to reduce your taxable income this year. Here are some ways to leverage different accounts you may have available to you.
Now that the standard deduction has increased from $12,700 for people...
Millions of Americans are benefiting from lower federal income tax rates, yet an unusual number of them may be surprised to find they owe taxes when they file their 2018 returns.
To prevent this from causing you too much financial distress, it helps to know what's coming and how to prepare for it. (See TAX-R-US 2018 Tax Reform Review).
Why you might owe money - despite lower taxes
When federal income tax rates were lowered for this year, millions of workers started seeing more money in their weekly paychecks. They may also associate a tax cut with the probability of getting a tax refund next year. Instead though, changes in how paycheck withholding is being handled may result in more Americans owing money next tax season than in past years.
The sources of the problem include both how withholding instructions are given and the new tax laws themselves. Responsibility for providing withholding tables to employers was transferred from the Internal Revenue Service to the Treasury...
How to manage your career and investments so you will never have to work again.
Implementing these Basic Seven (7) Habits will insure You Reach Financial Independence.
When your assets generate enough income to cover your expenses you have achieved financial independence.
Financial independence typically means having enough income to pay your living expenses for the rest of your life without having to work full time. Some people achieve this through saving and investing over many years, while others build successful businesses that can generate income without daily supervision. There are many ways to reach financial independence, and it’s not just for the wealthy, it’s for you. Here are some wealth generating habits that can make financial independence a part of your future: