Stimulus payments, relaxed rules for tapping into retirement accounts and other coronavirus-relief measures are helping to keep millions of Americans afloat financially, but they could bring tax surprises, including unpleasant ones, down the road.
Here's a quick look at some of the tax red flags to beware — ramifications that could affect how much money you owe or receive in a refund and possibly affect Social Security or other benefits.
However, unemployment benefits are taxable at the federal level and by most states, including Arizona, so it's a good idea to plan ahead by electing to have taxes withheld and, possibly, making estimated quarterly tax payments. Those actions aren't easy to stomach, especially if a job loss has crimped your budget, but doing so could avoid a nasty tax bill next year.
While you're here, how about this:
Elon Musk could save billions in taxes if Tesla moves its headquarters
Elon Musk could save billions of dollars in taxes over time if he moves his company and his home to Nevada or Texas, according to tax accountants.
Musk, who is embroiled in a battle with the state of California and Alameda County over his efforts to reopen Tesla 's factory, tweeted threats over the weekend to move the company to Nevada or Texas .
"This is the final straw," Musk tweeted. "Tesla will move its HQ and future programs to Texas/Nevada immediately."
California the Latest to Propose Higher Vapor Taxes | Tax Foundation
When Governor Gavin Newsom (D) submits his revised budget proposal on Thursday , it will include a vapor tax increase. California currently taxes vapor products at 59.27 percent of wholesale value, but the proposal would impose an additional tax at a rate of $2 for each 40 milligrams of nicotine in the product. The tax would take effect January 1, 2021 and is forecasted to raise $32 million in FY 2021.
The impetus for this proposal is increased youth vaping in the state. A nationwide survey of high schoolers, published in the fall of 2019, found that 27.5 percent of students had vaped at least once in the prior 30 days, though only 10 percent of students were considered regular users (defined as vaping 20 days out the prior 30).
Guest commentary: If Legislature wants to freeze property taxes, it must fund mandates | Opinion
Some members of the Pennsylvania legislature are suggesting that now is the time to freeze property taxes. This is absolutely possible, but first lawmakers must fund their mandates.
Public schools have been defunded by a slow, steady move by state legislators to take away funds by forcing districts to spend the money on programs other than education.
First, transportation. Public school districts are forced to pay to transport private school and charter school students 10 miles beyond the district borders. Why? We do not allow our public school students to be bused out of their districts. Why are taxpayers funding this trip for private school students?
Were you following this:
Property tax reprieve picks up Springfield steam
4 P.M. UPDATE: Gov. Pritzker today opened the door to some form of property tax relief to help struggling homeowners and others amid the COVID-19 pandemic.
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But how much and in what form is a work in progress that depends on several factors, not least among them when lawmakers will end their weeks-long COVID-related hiatus and reassemble in Springfield to conduct business. And lawmakers would have to persuade Gov. J.B. Pritzker to drop his apparent opposition to statewide action.
Receiving extra coronavirus unemployment benefits? How to avoid a big tax hit | Fox Business
FOX Business' Cheryl Casone breaks down the latest jobless claims report, which came in at 3.17 million.
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More than 33 million American workers are currently collecting unemployment benefits as a result of the coronavirus -induced lockdown throughout the nation — but that money , including the extra $600 weekly payment, is not tax-free.
US supreme court tackles politics' most tantalising mystery: Trump's tax returns | US news | The
Trump's lawyers contend that the president is not required to release such information, that he is immune from criminal prosecution while in office, and that Congress is trying to limit his power.
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"Think of the logic: Not only does the president enjoy a personal constitutional immunity – his businesses do, too."
Rossford pushes TARTA sales tax measure | Toledo Blade
Happening on Twitter
Great credit being given for our Coronavirus response, except in the Fake News. They are a disgrace to America! realDonaldTrump (from Washington, DC) Mon May 11 13:45:17 +0000 2020
Coronavirus numbers are looking MUCH better, going down almost everywhere. Big progress being made! realDonaldTrump (from Washington, DC) Mon May 11 13:56:57 +0000 2020
I have a better idea: give people coronavirus economic relief and don't hold their hard-earned benefits hostage. https://t.co/b8cT22xGfd JoeBiden (from Wilmington, DE) Mon May 11 14:40:14 +0000 2020
A reminder that before the coronavirus outbreak, Lindsey Graham promised to take away your health care. Remember th… https://t.co/URMuRFNk82 harrisonjaime (from South Carolina) Mon May 11 19:54:30 +0000 2020
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