All posts tagged: taxes

Are Your Taxes Too High? Most Say Yes | U.S. News Decision Points

Are Your Taxes Too High? Most Say Yes | U.S. News Decision Points

Published by Sam Flores

It’s tax season. And you’re not happy about it. If a new survey from the nonpartisan Pew Research Center is correct, then about 60% of you say the feeling that some wealthy people and corporations don’t pay their fair share bothers you “a lot.” At the other end of the spectrum, 12% say the same about the feeling some poor people don’t pay their fair share. The proportion of Americans who say they pay more than they should, given what they get from the government, has risen to 60%. That’s up from 56% in 2023, 49% in 2021, and 51% in 2019. Sign Up for U.S. News Decision Points Your trusted source for breaking down the latest news from Washington and beyond, delivered weekdays. By clicking “Sign Up”, you will receive the latest updates, including emails, from U.S. News & World Report and our trusted partners and sponsors, and you agree to our Terms and Conditions & Privacy Policy. (I’m not sure what was going on in 2021, but Pew’s numbers show that was a …

Nobody Knows How to File Taxes on Prediction Market Wins

Nobody Knows How to File Taxes on Prediction Market Wins

Published by skeptic

How do you file taxes on prediction market profits? It seems like the type of straightforward question any halfway decent bookkeeper should be able to answer. Right now, though, it’s a conundrum for tax experts across the country. “You have a vacuum of guidance,” says Patrick Camuso, an accountant who specializes in digital assets. “It puts the taxpayer in a bad position.” Prediction markets have been around for decades, so this isn’t a new issue. But platforms like Kalshi and Polymarket have exploded in popularity since last year, which means the question of how to properly account for prediction market gains has shifted from a niche concern to something far more urgent for many people. While only a small sliver of the population actually uses the markets—around 3 percent, according to a recent poll—that still means millions of US residents are obligated to report their wins and losses to the Internal Revenue Service. There’s big money in play here. Kalshi, which has a predominantly American user base, saw over $12 billion in monthly trade volume …

High Taxes, Power Bill Crisis Send Maryland Gov. Moore’s Poll Numbers To Record Low

High Taxes, Power Bill Crisis Send Maryland Gov. Moore’s Poll Numbers To Record Low

Published by Jenni Sidey

Left-wing Maryland Gov. Wes Moore’s approval rating has slid to a new record low as the Democrat darling, seen as Soros-friendly and as having aspirations to become the Democratic Party’s 2028 nominee, increasingly looks dimmer by the month. Moore and Alex Soros.  Moore’s approval rating tumbled to 48% for the first time since he took office two years ago, as the Democratic Party is likely freaking out that even in one of the bluest states in America, ruled by the kings and queens of the progressive party in a one-party fashion, their rising star (now sinking star) is seeing mounting voter backlash as the state descends into multiple crises, from a fisical mess to power bills to crime and even a massive exodus of residents.  High taxes breaking the pocketbooks of working poor, horrible leadership, dishonesty, terrible fiscal management by the state, and the power bill crisis are the top reasons for the growing resentment captured in the new UMBC poll, which surveyed 804 Marylanders in mid-March, 731 of whom indicated they were registered voters. …

Democrats See Georgia’s Failure to Curb Data Centers as an Electoral Gift

Democrats See Georgia’s Failure to Curb Data Centers as an Electoral Gift

Published by Sam Flores

ATLANTA (AP) — Georgia state lawmakers spent months debating ideas to curb the impact of data centers. But as their annual legislative session ended Thursday, they did nothing. Now with election season upon them, lawmakers are returning home to find local communities up in arms against the warehouses full of computers that power artificial intelligence. “I think they failed us, that’s what I think” said Judy Mullis, an activist fighting plans for a data center near Newnan, southwest of Atlanta. “I think they had the opportunity to do the right thing, and they didn’t. I’m so tired of them prioritizing big money.” Georgia has become one of the country’s top sites for new data centers, thanks to utilities eager to sell electricity and tax breaks estimated to cost state and local governments nearly $3 billion in the year beginning July 1. That gold rush has inflamed opposition, even where business-friendly Republicans dominate local politics. Democrats hope to harness that anger to gain ground in the battleground state, a potential model as the party plots a …

The IRS Wants Smarter Audits. Palantir Could Help Decide Who Gets Flagged

The IRS Wants Smarter Audits. Palantir Could Help Decide Who Gets Flagged

Published by skeptic

The Internal Revenue Service paid Palantir $1.8 million last year to improve a custom tool designed to help the tax agency identify the “highest-value” cases for audits, collection of unpaid taxes, and potential criminal investigations, according to documents WIRED obtained via public record request. When the contract was signed, the IRS said it was using “more than 100 business systems and 700 methods,” built over the course of “decades” to select cases in which people may have incorrectly reported their taxes or owe the IRS money. As identifying potential tax discrepancies became more complex, the agency said its systems grew increasingly inefficient, and it needed to find a solution. “This fragmented landscape can lead to a number of undesirable outcomes including but not limited to duplication of effort and cost, poor understanding of gaps in the coverage, and suboptimal case selection,” the IRS wrote in a document obtained by WIRED outlining the scope of the contract. The custom tool that Palantir built to address the problem, dubbed the “Selection and Analytic Platform,” or SNAP, is …

NS&I warning as taxpayers set to be hit with £400m bill | Personal Finance | Finance

NS&I warning as taxpayers set to be hit with £400m bill | Personal Finance | Finance

Published by Sam Flores

Chancellor Rachel Reeves (Image: Getty) National Savings and Investments (NS&I) is preparing to hand back up to £400 million to around 37,000 savers whose money was misplaced in a major scandal that has left hard-working taxpayers facing the bill. The Government-backed savings giant, which holds £240 billion for more than 24 million customers, is in urgent talks with the Treasury over the payout, expected to be the largest in its 160-year history. The exact sum is still being finalised, but sources indicate it could reach £400m after years of systemic failings that saw life savings lost, bereaved families denied access to funds, and Premium Bond prizes withheld. Treasury officials are working through the “very complex issue”, with the bill likely to fall on the taxpayer. The Treasury provides 100% backing for NS&I deposits, meaning any shortfall comes directly from public funds. Read more: Higher petrol prices, mortgages and council tax as economy in crisis Read more: Rachel Reeves ‘will impose another tax raid or increase borrowing’ amid Iran war The scandal was first exposed by …

File Your Taxes With TurboTax Full Service Now Before Prices Go Up

File Your Taxes With TurboTax Full Service Now Before Prices Go Up

Published by skeptic

Tax Day is April 15 this year, meaning we have less than a month to file without penalty or needing to file for an extension. The cost of filing with a tax service increases the longer you wait, and if you’re anything like me—and have complicated taxes—you’ve procrastinated. Take this as your sign to file now. TurboTax currently has a deal running for federal and state filing combined for only $150 for Expert Full Service for new customers, but this deal is only good through March 18. TurboTax has three tiers of services for filers: DIY, where you file yourself with step-by-step instructions; Expert Assist, where you can get help from tax experts throughout the process and have the expert review it before submitting; and Expert Full Service, where you can get your taxes done completely by a local tax expert. Prices vary for each tier, but Expert Full Service is not inexpensive—federal starts at $89 to $129, and the final price varies based on the complexity of your taxes. Plus, state taxes are an …

For retirement savings, should I worry about saving taxes or boosting returns?

For retirement savings, should I worry about saving taxes or boosting returns?

Published by Sam Flores

Dear Liz: We are a retired couple in our late 70s. I worked as a carpenter and my wife worked as a nurse. We saved and invested for the long haul with a well-known discount brokerage. Last summer, we were wooed by another financial services firm with a “much better idea.” Our combined portfolio at the time was $1,985,000. We transferred our holdings, including $340,000 in a taxable account. The transfer triggered a capital gain of $184,000 as the new company sold the old funds and reinvested the money according to their plan. This caused us to owe about $50,000 in income tax this year rather than breaking even or receiving a refund. Our holdings have grown to $2,013,119 after our 2026 required minimum distributions have been taken. Was this a good move given the large tax bill? Our tax accountant is very critical of the sale of these funds. Answer: Your accountant may not be in the best position to evaluate whether this was the right move for you. Tax pros are typically focused …