The ongoing pandemic has weighed in heavily on economies of countries all over the world. The global supply chain and health sectors have suffered the most significant blows. To cushion its citizens, the U.S government has made changes to several tax policies. Amid the coronavirus (COVID-19) threat, the U.S federal state and most local governments have resulted in supporting their economies through the implementation of measures like tax reliefs. Small businesses will also benefit from tax reliefs after the government passed legislation to have several aspects of tax policies changed in favor of the businesses. To the relief of many affected Americans, tax deadlines have also been extended. Below are several covid-19 tax updates that you need to know.
Now that the Democratic presidential field has been narrowed down to two candidates, it’s worth taking a more direct look into the candidates’ proposals. Democratic presidential candidate Bernie Sanders, a self-described Democratic-Socialist, has proposed highly progressive tax reforms in order to alleviate income inequality and pay for his extensive social programs.
If you want to save your hard earned money, you’ll have to learn how to jump through legal hoops in the tax code. The latest of these is the SECURE Act signed by President Trump. Among the most efficient ways to make the greatest use of your money is fixed index annuities. The SECURE Act, for the first time, lets you roll up your 401(k) and other savings accounts into a tax-free annuity.
On Tuesday, The New York Times published an investigation detailing ten years worth of figures it had obtained from President Trump’s tax returns. The paper claimed the previously unrevealed numbers came from IRS tax transcripts, and someone who had legal access to them. The story provided the latest flare up in the political tug of war between the Democratic House and the GOP White House.
The Times claimed their report painted a far bleaker picture of Trump’s finances, between 1985 and 1994, than even he led on. Trump’s core businesses reported $1.17 billion in losses during the period.
America’s founding fathers were wise in many respects. They were revolutionary in setting up a republic, based on the separation of powers and a system of checks and balances. One even presciently warned against the mischief of factions. What they did not foresee was two nationalized factions paralyzing government, a viable means of resolving disputes between elections, and an answer to “or else what?” should one branch refuse to comply with the demands of the other.
Right now, as of today, a new poll has been released showing that only 17% of United States citizens trust the government to do what’s best for the people. This comes on the heals of months of needless bickering on subjects that simply have no place in our society right now. There’s too many needs of the people that should be addressed as opposed to worrying so much about digging up dirt on someone else. And, what’s good for the goose is good for the gander.
- State and Property tax deductions capped at $10,000. On this year’s tax forms, deductions for state and local taxes — known as SALT deductions — is the one that is going to impact middle class taxpayers the most. It will particularly affect those living in states like California and New York, which both have above-average state income tax and property tax rates.
- If you paid a lot of state and local taxes in 2018, buckle up this tax season — new laws cap how much of those payments you can deduct on your federal tax return. That means more of your income could be taxable this year.