Billionaire philanthropist Bill Gates says there’s a “misfocus” in the way America’s wealthiest residents are taxed. He said if you focus on raising the ordinary income tax rate for America’s superrich, “you’re missing the picture.” The highest earners often have wealth tied to company stock, which isn’t taxed as “ordinary income.” Gates said “we can be more progressive without really threatening income generation – what you have left to decide [is] how to spread [it] around.” There’s been a lot of talk lately of upping taxes for America’s highest earners. But Bill Gates believes there’s a “misfocus” on how the government currently taxes America’s wealthiest residents, he said during a recent podcast interview with The Verge’s Nilay Patel. “In terms of revenue collection, you wouldn’t want to just focus on the ordinary income rate, because … [Read more...] about Bill Gates says the politicians proposing 70% income tax rates for the superrich are ‘missing the picture’
2018 social security tax limit
Tina Orem, NerdWallet Published 8:25 am CST, Wednesday, February 6, 2019 This article was first published on NerdWallet.com. Picking up a side hustle or becoming your own boss full-time can change a lot in your life, including your taxes. If you did any freelance or independent contract work last year, here are a few ways things might shift this tax-filing season. 1. You may get 1099s in the mail How it works: Your clients may send you a Form 1099-MISC showing how much they paid you during the year. You’ll need these forms to tally and report your income. What it means: “If they get a 1099-MISC with box 7 filled out, which is nonemployee compensation, that’s de facto self-employment income,” says Micah Fraim, a certified public accountant in Roanoke, Virginia. If you receive a 1099, don’t shove it in a drawer — whoever sent it to you also sent a copy to the IRS, so it wouldn’t be a good idea to leave that information off your … [Read more...] about 6 Things That Side Gig Will Probably Do to Your Taxes
provided by Published 3:00 pm CST, Monday, February 4, 2019 MoneyTips Every direct employee of a company should receive a W-2 form in January. The W-2 is the base document that defines your tax obligations, so it is important that you review and understand yours. However, some people are confused by some of the form's numbers — for example, why the wage listed on a W-2 form does not always match their salary — and simply fill in the information from each box into their tax forms without giving it a thorough review to verify that the information is correct. Employers can and do make mistakes on W-2s, and these errors can cost you money as well as time and effort to correct downstream tax ramifications. Let's take a look at the W-2 form in a bit more detail. Understanding Your W-2 Tax Forms First, verify the pertinent baseline information in the spaces labeled with letters, namely your Social Security number and both addresses (yours and your employer's). … [Read more...] about Is Your W-2 Tax Form Less Than Your Salary?
By Chris Heerlein Published January 29, 2019 Opinion FOXBusiness Facebook Twitter Comments Print video The five states where $1M in retirement savings will last the longest FBN's Susan Li on the best and worst states to live off of $1 million in retirement savings. You’ve heard and read it many times. Continue Reading Below If at all possible, put off claiming Social Security until your full retirement age so you can reap that full benefit amount. Even better, wait until you’re 70 because your benefit can grow an extra 8 percent for every year you put off the day you begin drawing those checks. And, unless there are dire circumstances, absolutely don’t take Social Security when you are 62 because when you claim it at that earliest-allowed age you’ll receive a much smaller check. Great advice. Except when it’s not. MORE FROM FOXBUSINESS.COM... WHAT WOMEN CANNOT IGNORE ABOUT RETIREMENT 3 SMART … [Read more...] about When taking Social Security at 62 could be wise
Jan 20, 7:55 PM EST Newsletter Signup BusinessTechnologyWorldNationalMedia & CultureOpinionSportsLuxury Business By Dan Caplinger 01/20/19 AT 7:30 PM Tax season is about to start, and many taxpayers hope that new tax reform laws will help them pay less in tax this year than in the past. In particular, retirees who rely on Social Security to supplement their savings and provide them with a regular source of income are looking forward to any break they can get from the IRS.However, one thing that Social Security recipients need to understand as they prepare their returns for the 2018 tax year is that they may have to include some of their benefits as income on their tax returns. Even though the laws governing taxation of Social Security benefits have been on the books for decades, that fact comes as a shock to retirees each and every year, and the structure of the tax seems to snare more and more people every year.Who has to include Social Security on their tax … [Read more...] about Do I Have To Put Social Security On My Tax Return?