Three giant legislative packages extended different types of coronavirus-related relief, including two rounds of stimulus checks, expanded unemployment benefits and a series of tax breaks. The latest, a $1.9 trillion stimulus package signed into law on Thursday, will provide many people with yet another check.
Not surprisingly, taxpayers are confused: Can I qualify for a larger stimulus check? Would it be, um, wrong to pay myself the unspent money in my dependent care spending account because I did all of the caregiving while also working? (It feels right, but you probably know the legal answer to that one already.)
Not to change the topic here:
Some Changes That May Affect Next Year's Tax Return - The New York Times
This past year may have been one of the most complicated tax seasons ever, but there are also recent updates that may affect your taxes when you file your return next year.
Here are a few of the earlier updates to keep in mind as you think about taxes you'll pay when you file your tax return in 2022.
Charitable contributions. The December legislation continued, just for 2021, a $300 charitable deduction for filers who don't itemize deductions on their tax returns. The measure also increased the maximum amount that married couples can deduct to $600. (The limit for 2020 was $300 per return, not per person.)
TaxDown banks ~$3M for tech that helps people get their taxes done – TechCrunch
Madrid-based TaxDown , which automates income tax filing by calculating regional deductions due to users so they don’t have to navigate complex tax rules themselves, has raised €2.4 million (~$3M) in seed funding.
US-based FJ Labs has joined TaxDown’s investment board as it closes the seed round. It says all its previous investors participated in the round, including James Argalas (Presidio Union); Abac Nest, Abac's venture capital business; Baldomero Falcones, the former Chairman at Mastercard; and the founders of Jobandtalent , Juan Urdiales and Felipe Navío (another Madrid-based startup).
Higher taxes won't help New York City's economy recover
While the sentiment for raising taxes on the rich is understandable, this is not the way to restore jobs or retain talent. The tax proposals under discussion are more likely to drive away very large taxpayers rather than bring in sustainable revenues. Here is why:
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New York state is not a sovereign nation. We are in competition with states where governors are begging our financial and tech professionals, entrepreneurs and investors to relocate permanently. If they go, their companies will follow. Taxes are not the prime motivator for an exodus of talent from New York, but they may be the proverbial straw that breaks the camel’s back.
Quite a lot has been going on:
A Buyout Fund C.E.O. Got in Tax Evasion Trouble. Here's Why Investors Shrugged.
Last fall, Robert F. Smith, the billionaire founder of Vista Equity Partners, a private equity firm, paid $139 million to federal authorities to settle one of the biggest tax evasion cases in American history.
The cultural institutions and colleges that benefited from Mr. Smith's philanthropy, including Carnegie Hall and Morehouse College, have also stood by him, and he remains at the helm of his company.
The muted public reaction from the public pension plans, sovereign wealth funds and endowments that invest in Vista's funds highlights an unflattering reality of the financial world: Investors are often willing to overlook the misdeeds of money managers if they're posting solid returns. And in a prolonged era of low interest rates, private equity is one of the few places where big investors can expect better returns than the bond market.
It May Be Time to Start Worrying About the Estate Tax - The New York Times
Under current rules, the federal estate tax won't ever affect you unless you're quite wealthy. But that could change rapidly, even if you are far from rich.
Proposals under consideration by President Biden could extend the tax to millions of people . That could happen in two ways: by raising rates and lowering qualifying thresholds on estates, and by increasing the liability of people who inherit and sell any assets.
Together, these changes could raise money from the truly wealthy while also imposing a levy on vast numbers of people who inherit assets like a modest family home.
American Rescue Plan Act of 2021 | COVID Relief | Tax Foundation
While several of the provisions in the American Rescue Plan are targeted toward the pandemic , like the extended unemployment insurance benefits, other aspects, like the expanded Child Tax Credit, are unrelated and not well targeted toward the pandemic. Overall, about $850 billion is directed to individuals while about $65 billion is directed to businesses.
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Below we provide more detail on the three major tax-related benefits in the American Rescue Plan: a third round of direct payments, extended unemployment insurance (UI) benefits and a $10,200 unemployment insurance income exemption for 2020, and an expansion of the Child Tax Credit.
Stimulus checks, taxes and timing: All you need to know | Fox Business
Rep. Kevin McCarthy, R- Calif., weighs in on the COVID-19 stimulus package, the border crisis and the HR1 bill.
It has been a whirlwind week for President Biden's $1.9 trillion coronavirus relief bill, which cleared the Senate on Saturday, the House on Wednesday and became law on Thursday.
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The measure includes $1,400 stimulus checks for many Americans, extended unemployment benefits at $300 a week through Sept. 6 and a generous one-year expansion of the child tax credit.
Happening on Twitter
➡️NEWS YOU CAN USE⬅️ Eligibility for #stimuluschecks is based on your last tax return. If you've a) had a kid, b)… https://t.co/CsX7uH3u2o Sites4Congress (from Lima, Ohio) Thu Mar 11 20:20:51 +0000 2021
Do you have questions about taxes? New rules, many of them temporary, give taxpayers breaks that can cut their bill… https://t.co/Zp12g3JTQc nytimes (from New York City) Fri Mar 12 21:30:44 +0000 2021
The pandemic touched so many aspects of our lives -- and it's probably going to affect your tax bill, too. From h… https://t.co/gu79CP2ng5 tarasbernard (from New York) Fri Mar 12 15:11:07 +0000 2021
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