Saturday, April 10, 2021

The 2021 Estimated Tax Dilemma: What Tax-Return Pros Are Doing And Telling Clients

DILEMMA: How can you know your April 15 estimated tax payment for 2021 if you haven't yet done your ... [+] 2020 tax return due in May?

Federal tax law requires all of us to pay at least 90% of our income tax liability through either withholding and/or quarterly estimated tax payments. For those whose income is not subject to withholding, or if you're a W-2 employee who does not pay enough in taxes during the year via payroll withholding, you pay quarterly estimated taxes on April 15, June 15, September 15, and January 15 of the following year (dates may vary slightly for weekends or holidays).

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Publisher: Forbes
Date: 2021-04-10
Author: Bruce Brumberg JD
Twitter: @forbes
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What's in Biden's Tax Plan? - The New York Times

WASHINGTON — The Biden administration unveiled a tax plan on Wednesday that would increase the corporate tax rate in the U.S. and limit the ability of American firms to avoid taxes by shifting profits overseas.

Much of the plan is aimed at reversing a deep reduction in corporate taxes under President Donald J. Trump . A 2017 tax bill slashed the corporate rate to 21 percent from 35 percent and enacted a series of other provisions that the Biden administration says have encouraged firms to shift profits to lower-tax jurisdictions, like Ireland.

Date: 2021-04-07T22:14:42.000Z
Twitter: @nytimes
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Homeowners are facing the biggest property-tax hikes in 4 years — here's where they pay the most

State and local governments have faced a cash crunch as a result of the COVID-19 pandemic. And they're passing the pain on to homeowners in the form of higher property taxes, according to a new report.

A new analysis from real-estate data company Attom Data Solutions found that Americans who owned single-family homes paid $323 billion in property taxes in 2020, up more than 5% from 2019. The average property tax nationwide was $3,719 for a single-family home in 2020, up 4.4% from the year prior.

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Publisher: MarketWatch
Date: 2021-04-08T12:34:00-04:00
Author: Jacob Passy
Twitter: @marketwatch
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Tax time can be a great time to assess state of your household finances - StarTribune.com

In "A History of Taxation and Expenditure in the Western World," authors Carolyn Webber and Aaron Wildavsky contend that the income tax is "a paradigm of responsive democracy at work." I like that idea.

In a somewhat similar vein, preparing your taxes is a paradigm of the household budget at work. It's an opportune moment to take stock of household finances, to think about your household budget and to look closely at longer-term goals. After all, you have gathered much of the financial information you will need for a detailed household income-and-spending review.

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Publisher: Star Tribune
Twitter: @StarTribune
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Corporate Taxes Are Wealth Taxes - The New York Times

The main cause of the radical decline in tax rates for very wealthy Americans over the past 75 years isn't the one that many people would guess. It's not about lower income taxes (though they certainly play a role), and it's not about lower estate taxes (though they matter too).

In the 1950s, '60s and '70s, many corporations paid about half of their profits to the federal government. The money helped pay for the U.S. military and for investments in roads, bridges, schools, scientific research and more. "A dirty little secret," Richard Clarida, an economist who's now the vice chairman of the Federal Reserve, once said , "is that the corporate income tax used to raise a fair amount of revenue."

Date: 2021-04-08T10:43:12.000Z
Twitter: @nytimes
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More Retirement Savers May Be Able to Claim a $1,000 Tax Credit This Year |

Retirement savers whose income took a hit during the pandemic may be able to get money to keep on saving thanks to a little-known tax credit.

The Saver's Credit gives people up to $1,000 to save in 401(k)s and individual retirement accounts if their income is low enough, but few people know about it or use it because of a tricky combination of qualifications. To claim the credit a person must not only have scant income, but also owe some taxes while having cash to save for retirement.

Date: 2021-04-10T13:00:00.000Z
Author: Gail MarksJarvis
Twitter: @BarronsOnline
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What tax cuts don't do | Column

Between 1945 to 1963 the highest marginal tax rate in the United States was 91 percent, for incomes above $400,000, which in current dollars would be between $3 million to $6 million, depending upon the start date.

These high rates might be the reason why CEOs were not paid ungodly sums as compensation because amounts above $140,000 were taxed at 81 percent, and above $400,000 at 91 percent. Why get paid a lot if most of the money went to Uncle Sam? The highest rate was reduced to 77 percent in 1964 and to 70 percent in 1965.

Publisher: Tampa Bay Times
Date: 2021-04-10 12:11:00
Author: Tampa Publishing Company
Twitter: @TB_Times
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Tax day 2021: COVID-19, stimulus effects on California taxes - Los Angeles Times
Publisher: Los Angeles Times
Twitter: @latimes
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Mezzanine, Equity Financing, Pied-à-Terre Taxes Not in NY Bill

Proposed taxes on mezzanine and preferred equity financing, and a tax on high-value second homes in New York City (commonly known as a "pied-à-terre" tax), were not included among the revenue-raising measures adopted by the New York State lawmakers in the final budget bill adopted on Wednesday, April 7.

This is not the first time these taxes have been proposed and then failed in the New York State legislature, and their proponents are likely to pursue efforts to revive them again.

Publisher: The National Law Review
Date: 5493B547C0AB527FF4CF8C4D0127302A
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