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Tag: taxes

Here’s how to reduce the taxes on your Social Security benefits

Here’s how to reduce the taxes on your Social Security benefits

Finance
Taxes are a certainty of life, including when it comes to your Social Security benefits.If you receive monthly benefit checks, it is very likely that income is taxed. In fact, a majority of people receiving Social Security benefits pay income tax on some of those earnings.But if you are not using strategies to manage your income, you could be increasing that tax bill. And that could mean less retirement income down the road.William Meyer, founder of Social Security Solutions, a provider of benefits-claiming software, estimates that, on average, you can find up to seven years' worth of more money by creating tax-efficient withdrawal strategies that coordinate Social Security benefits.And those savings can be as much as hundreds of thousands of dollars, according to Meyer."It adds up to...
Sanders proposal to raise these taxes could hit start-up workers

Sanders proposal to raise these taxes could hit start-up workers

Finance
Democratic presidential hopeful Vermont Senator Bernie Sanders participates in the tenth Democratic primary debate of the 2020 presidential campaign season co-hosted by CBS News and the Congressional Black Caucus Institute at the Gaillard Center in Charleston, South Carolina, on February 25, 2020.Jim Watson | AFP | Getty ImagesA bill introduced by Sen. Bernie Sanders, I-Vt., that would raise taxes on executive retirement plans could hit an unintended target: employees at start-ups.The presidential candidate, along with Sen. Chris Van Hollen, D-Md., proposed the CEO and Worker Pension Act on Thursday.While the bill likely won't go too far amid a divided Congress, it offers a clue into Sanders' thinking as he campaigns for office.The legislation takes aim at so-called nonqualified deferred c...
If you hit the $211 million Mega Millions jackpot, here’s what you’ll pay in taxes

If you hit the $211 million Mega Millions jackpot, here’s what you’ll pay in taxes

Finance
Before you start counting all the ways you'd use the $ 211 million Mega Millions jackpot if you're lucky enough to win, remember that a hefty chunk of the bonanza goes to Uncle Sam.The game's top prize has been climbing since late July, when a single ticket sold in New Hampshire matched all six numbers to win $ 168 million. And while the odds are stacked against players hitting the jackpot — your chance is about 1 in 302 million — the IRS is always a guaranteed eventual winner.Whether you take the prize as an annuity spread out over three decades or as an immediate, reduced lump sum, 24% is withheld for federal taxes. However, the top marginal tax rate of 37% means owing a lot more to the IRS at tax time. State taxes typically are due, as well.For Friday night's drawing, the cash option —
The IRS is going after some cryptocurrency holders for back taxes

The IRS is going after some cryptocurrency holders for back taxes

Finance
The Internal Revenue Services offices in Washington, D.C.Adam Jeffery | CNBCIf you've been trading or mining cryptocurrency, the Internal Revenue Service is about to come knocking.The IRS on Friday announced that it's sending letters to more than 10,000 taxpayers with virtual currency transactions who have potentially failed to report income and pay taxes owed.Filers who did not properly report their crypto transactions to the IRS can also expect a letter. "Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and penalties," said IRS commissioner Charles Rettig in a statement.Here's the lowdown on the tax implications of cryptocurrency.Different tax treatmentsIf you sold your cryptocurrency, ...
Here are the top 10 places to own a home and pay less in taxes

Here are the top 10 places to own a home and pay less in taxes

Finance
Homeownership comes with a lot of extra expenses, mostly thanks to the taxman.Due to increasing demand and limited inventory, the nationwide median sale price has reached $ 226,800, according to Zillow. Values have gone up 5.4% over the past year and are expected to rise another 2.5% in the next year.On top of that, state and local income taxes, property tax and sales tax can drastically increase the tab, depending on where you live.To help would-be homeowners keep their budgets in check, personal finance website GoBankingRates determined the best places in which to buy or own a home by looking at median home values as well as state and local tax rates, including income, sales and use tax rates (where applicable) and property taxes as a percentage of market value. The study of the 200 larg...