taxes | Common News Update

Jan92021 by adminNo Comments

Mega Millions jackpot leaps to $600 million. Here’s how much the winner would pay in taxes

Finance

Drew Angerer | Getty Images News | Getty ImagesNo, you didn't hit the $ 520 million Mega Millions jackpot.The lottery game's top prize has climbed to a whopping $ 600 million for Tuesday night's drawing, following no ticket matching all six numbers drawn Friday night. The amount marks the 8th-largest jackpot in lottery history. And Powerball's jackpot, meanwhile, is an estimated $ 470 million for Saturday night's drawing.Of course, the advertised amounts are not what winners would end up with. Lottery officials are required to withhold 24% of big wins for federal taxes. And that's only the start of what you would pay to Uncle Sam and, typically, state coffers.More from Personal Finance:Some newlyweds face a marriage tax penaltyHere are three of my worst money mistakesAvoid mistakes when...

Nov272020 by adminNo Comments

Working remotely from different states? You could face additional state taxes next year

Finance

Westend61 | Westend61 | Getty ImagesRemote workers — especially those who have been hopping to different states — could be on the hook for additional taxes when they file their returns next spring.It's been nine months since the coronavirus pandemic first gripped the U.S. and led to many workers punching in each day remotely. The longer you've been away from your home base, the greater the odds are that you could have new state tax obligations.The situation becomes even more complicated if you've been waiting out the pandemic from your vacation home in a different state from where you're primarily domiciled.More from Smart Tax Planning:Five steps business owners can take to trim their taxesYou have just a few weeks to spend down these tax-advantaged dollarsBusiness owners expecting PPP for...

Oct302020 by adminNo Comments

Here’s what you should know about Trump, Biden and your taxes

Finance

People line up for early voting at the Jackson Heights branch of the Queens Public Library in New York on Oct. 24, 2020.Stephanie Keith | Getty ImagesBefore you head into the voting booth next Tuesday, get to know where the presidential candidates stand on your taxes.Democrat Joe Biden is calling for tax hikes on wealthy households with income exceeding $ 400,000, proposing increases in payroll and income taxes for those families.President Donald Trump has proposed further tax cuts to increase take-home pay, plus an expansion of opportunity zones — a tax incentive to reward investing in economically distressed areas, according to the Trump campaign.More from Smart Tax Planning:3 smart tax moves, no matter who wins the Nov. 3 electionThese are the income tax brackets for 2021Four ways weal...

Oct282020 by adminNo Comments

4 ways wealthy families are trying to head off heftier estate taxes under a Biden administration

Finance

Tom Merton | OJO Images | Getty ImagesWith the election less than a week away, the phones are ringing off the hook for estate planning attorneys and accountants.That's because wealthy families fear that an overhaul of the estate and gift tax exemption — the amount of assets they can transfer without a 40% levy — is just around the corner."For tax nerds, it's like our Super Bowl," said Alison Hutchinson, managing director at Brown Brothers Harriman in New York. "There are lots of conversations with people who are interested in getting everything set up and ready to go."In 2018, the Tax Cuts and Jobs Act roughly doubled the amount wealthy individuals could transfer either over their lifetime or in a bequest without being subject to the 40% estate or gift tax. In 2020, it's sitting at $ 11....

Oct242020 by adminNo Comments

Trump says he ‘prepaid’ his taxes. So do millions of other Americans. Here’s what that may mean

Finance

President Donald Trump and Democratic presidential candidate Joe Biden during the final presidential debate at Belmont University in Nashville, Tennessee, on Oct. 22.Jim Watson and Brendan Smialowski | AFP | Getty ImagesPresident Donald Trump isn't the only one who's "prepaid" his taxes. Millions of other Americans have, as well.At least that's the case if he meant paying quarterly estimated taxes, according tax experts.Talk of the president's income tax returns — and the $ 750 he reportedly paid in 2016 and 2017, per The New York Times — made its way onto the stage Thursday night during his final debate against Democratic candidate Joe Biden."I asked them a week ago," Trump said, referring to his accountants. "I said, 'What did I pay?' They said, 'Sir, you prepaid tens of millions of dol...