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		<title>Where&#8217;s my IRS refund? Paper returns taking months to process</title>
		<link>https://cincylink.com/2023/07/07/wheres-my-irs-refund-paper-returns-taking-months-to-process/</link>
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		<pubDate>Fri, 07 Jul 2023 04:26:31 +0000</pubDate>
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					<description><![CDATA[Are you still wondering where your tax refund is several months after you filed? You're not alone and people's patience is wearing thin.The IRS is further behind in processing returns in 2022 than it was this same time last year.The IRS shut down its offices for several months back in 2020 and ever since has &#8230;]]></description>
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<p>
					Are you still wondering where your tax refund is several months after you filed? You're not alone and people's patience is wearing thin.The IRS is further behind in processing returns in 2022 than it was this same time last year.The IRS shut down its offices for several months back in 2020 and ever since has struggled to recover, which means incredible delays in processing tax refunds, especially for people who filed paper returns.The taxpayer advocate says at the end of May, which is the most recent number available,  the IRS had 21.3 million unprocessed returns, including 8.2 million personal returns.Last year, at the same time, that number was less than 20 million, with just 6 million personal returns.Before the pandemic, the taxpayer advocate said the IRS typically paid refunds on paper returns in 4 to 6 weeks.Now, it's generally 6 months or more, so all you can really do is keep waiting.The IRS director promised to finally crush the pandemic backlog this year, but it hasn't happened so far.Phone service is also a mess because many of the people who answer the phones are still helping process paper returns.Watch the video above for the full story.
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<div>
<p>Are you still wondering where your tax refund is several months after you filed? </p>
<p><!-- article/blocks/side-floater --></p>
<p><!-- article/blocks/side-floater --></p>
<p>You're not alone and people's patience is wearing thin.</p>
<p>The IRS is further behind in processing returns in 2022 than it was this same time last year.</p>
<p>The IRS shut down its offices for several months back in 2020 and ever since has struggled to recover, which means incredible delays in processing tax refunds, especially for people who filed paper returns.</p>
<p>The taxpayer advocate says at the end of May, which is the most recent number available,  the IRS had 21.3 million unprocessed returns, including 8.2 million personal returns.</p>
<p>Last year, at the same time, that number was less than 20 million, with just 6 million personal returns.</p>
<p>Before the pandemic, the taxpayer advocate said the IRS typically paid refunds on paper returns in 4 to 6 weeks.</p>
<p>Now, it's generally 6 months or more, so all you can really do is keep waiting.</p>
<p>The IRS director promised to finally crush the pandemic backlog this year, but it hasn't happened so far.</p>
<p>Phone service is also a mess because many of the people who answer the phones are still helping process paper returns.<strong><em><br /></em></strong></p>
<p><strong><em>Watch the video above for the full story.</em></strong></p>
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		<title>Pregnant Georgians can list unborn children as dependent on tax returns</title>
		<link>https://cincylink.com/2023/07/06/pregnant-georgians-can-list-unborn-children-as-dependent-on-tax-returns/</link>
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		<dc:creator><![CDATA[cincylink]]></dc:creator>
		<pubDate>Fri, 07 Jul 2023 00:07:12 +0000</pubDate>
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		<guid isPermaLink="false">https://cincylink.com/?p=167452</guid>

					<description><![CDATA[If you're pregnant in Georgia, you can now list your unborn child as a dependent on tax returns. On Monday, the Georgia Department of Revenue released new guidance related to its Living Infants and Fairness Equality (LIFE) Act, which prevents doctors from performing abortions beyond six weeks, with some exceptions. "In light of the June &#8230;]]></description>
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<p>If you're pregnant in Georgia, you can now list your unborn child as a dependent on tax returns.</p>
<p>On Monday, the Georgia Department of Revenue released new guidance related to its Living Infants and Fairness Equality (LIFE) Act, which prevents doctors from performing abortions beyond six weeks, with some exceptions.</p>
<p>"In light of the June 24, 2022, U.S. Supreme Court ruling in Dobbs v. Jackson Women’s Health Organization and the July 20, 2022, 11th Circuit Court of Appeals ruling in Sistersong v. Kemp, the Department will recognize any unborn child with a detectable human heartbeat... as eligible for the Georgia individual income tax dependent exemption," the agency said in a press release.</p>
<p>According to the department, a Georgian taxpayer at least six weeks pregnant on or after July 20 through Dec. 31, 2022 can list the embryo as a dependent on next year's taxes.</p>
<p>Those who claim an exemption will receive $3,000 for "each unborn child," the agency said.</p>
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		<title>IRS mandatory presidential audit policy goes under spotlight</title>
		<link>https://cincylink.com/2023/06/12/irs-mandatory-presidential-audit-policy-goes-under-spotlight/</link>
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		<dc:creator><![CDATA[cincylink]]></dc:creator>
		<pubDate>Mon, 12 Jun 2023 04:28:55 +0000</pubDate>
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		<guid isPermaLink="false">https://cincylink.com/?p=184347</guid>

					<description><![CDATA[An IRS policy governing the audits of tax returns filed by U.S. presidents is under new scrutiny after a report published by a congressional panel found the agency failed to perform the mandatory inspection of Donald Trump's returns until Congress pressed for information about the process. The three-point policy states that individual returns for the &#8230;]]></description>
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<p>An IRS policy governing the audits of tax returns filed by U.S. presidents is under new scrutiny after a report published by a congressional panel found the agency <a class="Link" href="https://apnews.com/article/business-donald-trump-richard-neal-c697c4e300948a9e2638d0d9fbbe2f96">failed to perform the mandatory inspection</a> of Donald Trump's returns until Congress pressed for information about the process.</p>
<p>The <a class="Link" href="https://www.irs.gov/irm/part4/irm_04-008-004#idm139994953458320">three-point policy</a> states that individual returns for the president and the vice president are subject to mandatory review, “should always be kept in an orange folder,” should be kept from the eyes of IRS employees and “should be locked in a secure drawer or cabinet when the examiner or reviewer is away from the work area.”</p>
<p>The report released Tuesday by the Democratic majority on the House Ways and Means Committee said the process, which dates to 1977, was “dormant, at best” during the early years of the Trump administration. Democrats in Congress are responding by introducing legislation that would codify the IRS policy into law with more stringent requirements.</p>
<p>Tax experts say the failure to launch the audit earlier is emblematic of a larger problem regarding the IRS’ capacity to examine high-income taxpayers’ returns — and a reminder of Trump as a norm-defying president.</p>
<p>John Koskinen, who served as IRS commissioner during both the Obama and Trump administrations, said the policy has been out of the public eye because presidents have traditionally released their tax-return summaries to the public.</p>
<p>“It only became an issue with a president who refused to release his tax returns,” Koskinen said. “If Trump had been releasing his returns, nobody would have raised this issue.”</p>
<p>Trump’s tax returns being <a class="Link" href="https://apnews.com/article/us-supreme-court-business-donald-trump-personal-taxes-congress-7cc1a1a0d10de7bdfc1252603f53ab69">handed over to Congress</a> recently is the culmination of a yearslong legal fight between Trump and Democratic lawmakers.</p>
<p>Steve Rosenthal, senior fellow at the Urban-Brookings Tax Policy Center, said the IRS’ failure to audit Trump is a showing that “the mandatory auditing program is broken, we cannot rely on the current system to fairly audit the president, and there’s a general problem of the IRS auditing sophisticated taxpayers.”</p>
<p>Rosenthal added: “This is a much larger problem than Donald Trump — yes, he makes bad things worse, but the situation was bad to begin with.”</p>
<p>A new $80 billion infusion of funds through the so-called Inflation Reduction Act is supposed to remedy the beleaguered agency's low staffing levels, outdated technology and host of other issues. Republicans who are poised to take control of the House in less than two weeks, however, <a class="Link" href="https://apnews.com/article/2022-midterm-elections-congress-business-government-and-politics-0f645387cac1ebbe1551f95524cf3ce1">have said they want to cut that funding</a>.</p>
<p>Tuesday's committee report revealed that the IRS only began to audit Trump’s 2016 tax filings on April 3, 2019, more than two years into Trump’s presidency and just months after Democrats took control of the House. That date coincides with Rep. Richard Neal, D-Mass., the panel chairman, asking the IRS for information related to Trump’s tax returns.</p>
<p>The report's findings prompted lawmakers to recommend a statutory requirement for the mandatory examination of the president's taxes, with “disclosure of certain audit information and related returns in a timely manner.”</p>
<p>Senate Finance Committee Chair Ron Wyden, D-Ore., said he will work to pass the bill through the Senate. House Speaker Nancy Pelosi said the chamber would “move swiftly” to advance the legislation.</p>
<p>The issue highlights frustration with the so-called tax gap, which is the difference between how much money is owed to the federal government and how much is paid. <a class="Link" href="https://apnews.com/article/business-government-and-politics-ba556299145218216d60790457482c3f">IRS data released</a> in October projects that for 2017 to 2019, the estimated average gross tax gap will be $540 billion per year.</p>
<p>Treasury Secretary Janet Yellen <a class="Link" href="https://apnews.com/article/biden-technology-personal-taxes-janet-yellen-26165108b1fe1907f216ed0357d8f0bf">said in August</a>, and has repeated at various speaking engagements, that the new funds allocated by Congress would be used to increase audits on high-wealth individuals, firms and complex pass-throughs.</p>
<p>“This is challenging work that requires a team of sophisticated revenue agents in place to spend thousands of hours poring over complicated returns, and it is also work that has huge revenue potential,” she told former IRS Commissioner Chuck Rettig in August.</p>
<p>In an application of the IRS policy on mandatory presidential audits, well-trained agents, forensic experts, tax attorneys and others would be required to oversee a presidential audit as complicated as Trump's, which included hundreds of businesses, properties and complex business interests.</p>
<p>The <a class="Link" href="https://waysandmeans.house.gov/sites/democrats.waysandmeans.house.gov/files/documents/2022.12.20%20Final%20Report%20House%20Ways%20and%20Means.pdf">congressional report</a> highlighted the lack of staffing and availability of experts to examine Trump's taxes. The report states that the IRS believed that accuracy of his filings was ensured because he had legal counsel and an accounting firm representing him.</p>
<p>The question of whether presidential tax documents should be disclosed is another matter of debate among tax experts and advocates.</p>
<p>Rep. Kevin Brady of Texas, the top Republican on the Ways and Means Committee, said Congress would be setting a “dangerous new precedent” by releasing the presidential records. Koskinen said that “it's a significant serious precedent for a committee to seek returns and then release them."</p>
<p>“I see two big issues here — what is the IRS going to do to ensure presidents are audited regularly, and what's the rationale for releasing these returns," Koskinen said.</p>
<p>Rosenthal said he thinks presidential returns should be publicly disclosed to ensure proper oversight.</p>
<p>“When this information is made public, the president is going to be more wary about cheating on their taxes and making them public — the results would put both the IRS and president on their best behavior,” he said.</p>
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		<title>TurboTax customers to receive checks for $141 million settlement</title>
		<link>https://cincylink.com/2023/05/24/turbotax-customers-to-receive-checks-for-141-million-settlement/</link>
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		<dc:creator><![CDATA[cincylink]]></dc:creator>
		<pubDate>Wed, 24 May 2023 04:20:00 +0000</pubDate>
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		<guid isPermaLink="false">https://cincylink.com/?p=196208</guid>

					<description><![CDATA[Millions of Americans who qualified for free tax services — but were instead deceived into paying TurboTax for their returns — will soon get settlement checks in the mail.In a settlement last year, TurboTax's owner Intuit Inc. was ordered to pay $141 million to some 4.4 million people across the country. Those impacted were low-income &#8230;]]></description>
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<p>
					Millions of Americans who qualified for free tax services — but were instead deceived into paying TurboTax for their returns — will soon get settlement checks in the mail.In a settlement last year, TurboTax's owner Intuit Inc. was ordered to pay $141 million to some 4.4 million people across the country. Those impacted were low-income consumers eligible for free, federally-supported tax services — but paid TurboTax to file their federal returns across the 2016, 2017 and 2018 tax years due to “predatory and deceptive marketing,” New York Attorney General Letitia James said.All 50 states and the District of Columbia signed the May 2022 settlement, which was led by James.Consumers eligible for restitution payments do not need to file a claim, the New York Attorney's General Office said Thursday. They will be notified by an email from Rust Consulting, the settlement fund administrator, and receive a check automatically.Checks will be mailed starting this week, and continue through the month of May. The amount paid to each eligible consumer ranges from $29 to $85 — depending on the number of tax years they qualify for.“TurboTax’s predatory and deceptive marketing cheated millions of low-income Americans who were trying to fulfill their legal duties to file their taxes,” James said in a Thursday statement. “Today we are righting that wrong and putting money back into the pockets of hardworking taxpayers who should have never paid to file their taxes.”At the time of the May 2022 settlement, James said her investigation into Intuit was sparked by a 2019 ProPublica report that found the company was using deceptive tactics to steer low-income tax filers away from the free, federal services they qualified for — and toward its own commercial products instead.Under the terms of last year's settlement, Intuit Inc. agreed to suspend TurboTax’s “free, free, free” ad campaign. According to documents obtained by ProPublica, Intuit executives were aware of the impact of advertising free services that were actually not free for everyone.“The website lists Free, Free, Free and the customers are assuming their return will be free,” an internal company PowerPoint presentation said, per ProPublica. “Customers are getting upset.”When contacted by The Associated Press on Friday, Inuit pointed to the company's May 2022 statement following the settlement agreement.“Intuit is pleased to have reached a resolution with the state attorneys general that will ensure the company can return our focus to providing vital services to American taxpayers today and in the future,” Kerry McLean, Intuit’s executive vice president and general counsel, said at the time.
				</p>
<div>
<p>Millions of Americans who qualified for free tax services — but were instead deceived into paying TurboTax for their returns — will soon get settlement checks in the mail.</p>
<p>In a settlement last year, TurboTax's owner Intuit Inc. was <a href="https://apnews.com/article/technology-business-new-york-united-states-personal-taxes-2427cfbc220382ca89ac992f6dde8030" rel="nofollow">ordered to pay $141 million</a> to some 4.4 million people across the country. Those impacted were low-income consumers eligible for free, federally-supported tax services — but paid TurboTax to file their federal returns across the 2016, 2017 and 2018 tax years due to “predatory and deceptive marketing,” New York Attorney General Letitia James said.</p>
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<p>All 50 states and the District of Columbia signed the May 2022 settlement, which was led by James.</p>
<p>Consumers eligible for restitution payments do not need to file a claim, the New York Attorney's General Office said Thursday. They will be notified by an email from Rust Consulting, the settlement fund administrator, and receive a check automatically.</p>
<p>Checks will be mailed starting this week, and continue through the month of May. The amount paid to each eligible consumer ranges from $29 to $85 — depending on the number of tax years they qualify for.</p>
<p>“TurboTax’s predatory and deceptive marketing cheated millions of low-income Americans who were trying to fulfill their legal duties to file their taxes,” James said in a Thursday statement. “Today we are righting that wrong and putting money back into the pockets of hardworking taxpayers who should have never paid to file their taxes.”</p>
<p>At the time of the May 2022 settlement, James said her investigation into Intuit was sparked by a <a href="https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free" rel="nofollow">2019 ProPublica report</a> that found the company was using deceptive tactics to steer low-income tax filers away from the free, federal services they qualified for — and toward its own commercial products instead.</p>
<p>Under the terms of last year's settlement, Intuit Inc. agreed to suspend TurboTax’s “free, free, free” ad campaign. According to documents obtained by ProPublica, Intuit executives were aware of the impact of advertising free services that were actually not free for everyone.</p>
<p>“The website lists Free, Free, Free and the customers are assuming their return will be free,” an internal company PowerPoint presentation said, per ProPublica. “Customers are getting upset.”</p>
<p>When contacted by The Associated Press on Friday, Inuit pointed to the company's May 2022 statement following the settlement agreement.</p>
<p>“Intuit is pleased to have reached a resolution with the state attorneys general that will ensure the company can return our focus to providing vital services to American taxpayers today and in the future,” Kerry McLean, Intuit’s executive vice president and general counsel, said at the time.</p>
</p></div>
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		<title>Millions eligible for tax refund boost this year</title>
		<link>https://cincylink.com/2022/02/05/millions-eligible-for-tax-refund-boost-this-year/</link>
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		<pubDate>Sun, 06 Feb 2022 02:37:06 +0000</pubDate>
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					<description><![CDATA[NASHVILLE, Tenn. — If you haven’t already, it’s time to start preparing to file your taxes. This year, millions of low-income families are eligible for a one-time tax break that could save them big bucks. The Federal Earned Income Tax Credit, which is aimed at people in the lowest-paid jobs, is being tripled for a &#8230;]]></description>
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<p>NASHVILLE, Tenn. — If you haven’t already, it’s time to start preparing to file your taxes.</p>
<p>This year, millions of low-income families are eligible for a one-time tax break that could save them big bucks.</p>
<p>The Federal Earned Income Tax Credit, which is aimed at people in the lowest-paid jobs, is being tripled for a group of workers who typically don't benefit much from it: childless adults.</p>
<p>For the tax year that just ended, low-income workers without kids can receive a credit worth up to $1,500 — nearly triple what the credit was worth in 2020, thanks to the American Rescue Plan.</p>
<p>The plan allows anyone 19 and older, who's not a full-time student and has earnings, to claim the expanded credit.</p>
<p>18-year-olds who are without a home or who have been in foster care are also eligible.</p>
<p>Previously, only workers ages 25 to 64 could claim it.</p>
<p>Taxpayers without children who earned up to $21,430 from a job, gigs or self-employment can claim the credit when they file their tax returns this season. </p>
<p>In most years, workers earning more than about $16,000 are ineligible for the EITC.</p>
<p>Taxpayers can also choose to use income from 2019 to qualify for the credit — useful for those who lost their jobs in 2020.</p>
<p>Policy experts estimate that between 17 and 20 million workers will benefit from the expanded credit.</p>
<p><i>This story was first reported by Aaron Cantrell at <a class="Link" href="https://www.newschannel5.com/news/millions-of-low-income-americans-eligible-for-tax-refund-boost-this-year">WTVF</a> in Nashville, Tenn. </i></p>
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		<title>Pandemic continues to influence taxes</title>
		<link>https://cincylink.com/2022/01/23/pandemic-continues-to-influence-taxes/</link>
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		<pubDate>Sun, 23 Jan 2022 13:07:17 +0000</pubDate>
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		<guid isPermaLink="false">https://cincylink.com/?p=139826</guid>

					<description><![CDATA[Tax season kicks off Monday, but the pandemic continues to impact filing.The big takeaway this year is to not rush. Accountants suggest taking a second look to make sure all documents are in order, particularly those regarding COVID-19 relief payments. “Typically, you’d want to wait until the early part of February unless you are 100% &#8230;]]></description>
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<p>
					Tax season kicks off Monday, but the pandemic continues to impact filing.The big takeaway this year is to not rush. Accountants suggest taking a second look to make sure all documents are in order, particularly those regarding COVID-19 relief payments.  “Typically, you’d want to wait until the early part of February unless you are 100% sure you have these items when you file,” said CPA Joshua Jenson, founder of Jenson and Companies in Oklahoma City. Jenson said the best way to avoid delays is to wait until you receive two letters from the IRS: documents for the third stimulus payment and the child tax credits. “On your 2021 tax return, if you didn’t get the full amount, this is where you get the rest of those dollars that are due to you,” he said. Experts also advise taxpayers to take advantage of a new deductible this season.“The new big deduction in 2021 that’s very exciting is that you can deduct up to $600 in charitable contributions directly on form 1040 even if you do not itemize your deductions,” he said. “Do not miss that. It’s right there on Form 1040.”Jenson said that while the pandemic may have caused some returns to be delayed last year, he doesn’t expect things to be the same this year.  “The IRS has done a phenomenal job, as well as the Oklahoma Tax Commission, at where it’s possible, having their agents either work remotely or in a safeguard situation that allows returns to continue to be processed,” he said. Another thing to keep in mind before filing is that employers had until Jan. 21 to send W-2s.
				</p>
<div>
<p>Tax season kicks off Monday, but the pandemic continues to impact filing.</p>
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<p>The big takeaway this year is to not rush. Accountants suggest taking a second look to make sure all documents are in order, particularly those regarding COVID-19 relief payments.  </p>
<p>“Typically, you’d want to wait until the early part of February unless you are 100% sure you have these items when you file,” said CPA Joshua Jenson, founder of Jenson and Companies in Oklahoma City. </p>
<p>Jenson said the best way to avoid delays is to wait until you receive two letters from the IRS: documents for the third stimulus payment and the child tax credits. </p>
<p>“On your 2021 tax return, if you didn’t get the full amount, this is where you get the rest of those dollars that are due to you,” he said. </p>
<p>Experts also advise taxpayers to take advantage of a new deductible this season.</p>
<p>“The new big deduction in 2021 that’s very exciting is that you can deduct up to $600 in charitable contributions directly on form 1040 even if you do not itemize your deductions,” he said. “Do not miss that. It’s right there on Form 1040.”</p>
<p>Jenson said that while the pandemic may have caused some returns to be delayed last year, he doesn’t expect things to be the same this year.  </p>
<p>“The IRS has done a phenomenal job, as well as the Oklahoma Tax Commission, at where it’s possible, having their agents either work remotely or in a safeguard situation that allows returns to continue to be processed,” he said. </p>
<p>Another thing to keep in mind before filing is that employers had until Jan. 21 to send W-2s.</p>
</p></div>
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		<title>5 tax changes that can boost your refund this year</title>
		<link>https://cincylink.com/2022/01/14/5-tax-changes-that-can-boost-your-refund-this-year/</link>
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		<pubDate>Fri, 14 Jan 2022 18:57:07 +0000</pubDate>
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		<guid isPermaLink="false">https://cincylink.com/?p=137298</guid>

					<description><![CDATA[Many U.S. tax filers get refunds when they file their federal income taxes. But this year, thanks to several temporarily expanded tax breaks, you could get back more — or in some cases, less — than you might expect.This is particularly the case if you were eligible to receive any of the tax relief measures &#8230;]]></description>
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<p>
					Many U.S. tax filers get refunds when they file their federal income taxes. But this year, thanks to several temporarily expanded tax breaks, you could get back more — or in some cases, less — than you might expect.This is particularly the case if you were eligible to receive any of the tax relief measures included in the American Rescue Plan, which was signed into law last March.In many instances, the tax breaks will also benefit low-income earners who ordinarily do not have to file a return.Here are several key breaks you should keep in mind as you gather documents to prepare your 1040.1. More generous child and dependent care tax creditIf you were working or going to school and paying for the care of a child under 13 or another family member who is not mentally or physically able to care for themselves, you likely will benefit from the temporary increases made to the child and dependent care credit."This is a biggie. It was significantly expanded," said Kathy Pickering, Chief Tax Officer, The Tax Institute at H&amp;R Block.The credit is based on your income and calculated as a percentage of the qualifying expenses you incurred — which this year is 50%, up from 35% in the years prior, although that percentage is reduced for those making more than $125,000.Qualifying expenses are minus any employer-provided dependent care benefits (e.g., money you put into a tax-advantaged flexible spending account).All in, the credit this year could reduce your tax bill — or increase your refund — by up to $4,000 for one dependent or $8,000 for two or more. Prior to 2021, the credit would only have done so by $1,050 or $2,100, respectively.2. A temporary expansion of the child tax creditThe maximum value of the child tax credit is temporarily $3,000 per child ages 6 through 17 and $3,600 per child ages 5 and under.Unlike in prior years, the credit is fully refundable for 2021, meaning you can get the maximum amount of the credit even if it exceeds your federal income tax liability for the year.Except for the wealthiest households, "anyone with children ages 17 and below is likely eligible to claim the child tax credit," Pickering said.And for the first time, the IRS made advanced monthly payments on that credit, from July through December. So you may already have received about half of your credit and can claim the other half on your return. To help with that calculation, the IRS will send you a letter (Letter 6419) detailing the amount you've already received, which you should use to reconcile how much more you are due. The amount may be different than you expect.Here's why: The advanced payments were calculated based on your 2020 or 2019 income and family situation. But the final calculation will be based on your 2021 information, which may change how much you're eligible for.For instance, if you had another child in 2021 you may be entitled to more than your advanced payments reflect.Or you may have gotten paid too much if, for example, you're divorced and changed which parent could claim a child on their tax return. The same might be true if you made more money in 2021 or one of your children turned 18. Whether you have to "repay" the excess you got — which most likely means you just claim less of a credit for the first half of last year — depends on your income.Those making less than $40,000 ($60,000 if married) get full repayment protection. But if you're making more than $80,000 (or $120,000 if married) you may have to repay. (Here is the IRS's FAQ on the issue.)3. Claim a recovery rebate creditSince the pandemic began, the IRS has sent out three rounds of Economic Impact Payments to eligible Americans, the last of which went out in 2021.If you got that third payment, the IRS will send you a letter (Letter 6475) detailing how much you were paid. You should report that information on your return.But if you didn't get the third payment — or perhaps now qualify for more than you were paid because your income or family situation changed — you should review whether to claim the refundable recovery rebate credit."Individuals who didn't qualify for a third Economic Impact Payment or got less than the full amount, may be eligible to claim the 2021 recovery rebate credit based on their 2021 tax year information," the IRS noted.If you got a stimulus payment but your 2021 income would have disqualified you, there's good news. "You do not need to repay the third stimulus payment — which was based on your 2019 or 2020 income — if your 2021 income would have disqualified you from all or part of the payment," said Mark Luscombe, principal analyst at Wolters Kluwer Tax &amp; Accounting.4. Expansion of the Earned Income Tax CreditFor 2021 only, low- and moderate-income wage earners who do not have qualifying children may be eligible for a larger Earned Income Tax Credit than before.The American Rescue Plan nearly tripled the maximum credit available to $1,502.To qualify, your earned income for 2021 must be below $21,430 ($27,380 if married filing jointly). And on a permanent basis for all EITC recipients, the amount of investment income you may have on top of your wages and still claim the credit increased to $10,000.The credit is also available for the first time to childless workers as young as 19 and workers 65 and older.For people who do have qualifying children, if they earn $57,414 or less, they may qualify for the EITC. And depending how many kids they have, they could get a maximum credit of $6,728.5. Special charitable tax deductionNormally, only tax filers who itemize deductions can deduct their charitable contributions. But the IRS once again is allowing those who take the standard deduction — which is the majority of tax filers — to deduct up to $300 in cash to qualifying charities. And this year, married couples filing jointly may deduct up to $600.
				</p>
<div>
<p>Many U.S. tax filers get refunds when they file their federal income taxes. But this year, thanks to several temporarily expanded tax breaks, you could get back more — or in some cases, less — than you might expect.</p>
<p>This is particularly the case if you were eligible to receive any of the tax relief measures included in the American Rescue Plan, which was signed into law last March.</p>
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<p>In many instances, the tax breaks will also benefit low-income earners who ordinarily do not have to file a return.</p>
<p>Here are several key breaks you should keep in mind as you gather documents to prepare your 1040.</p>
<h3>1. More generous child and dependent care tax credit</h3>
<p>If you were working or going to school and paying for the care of a child under 13 or another family member who is not mentally or physically able to care for themselves, you likely will benefit from the temporary increases made to the <a href="https://www.irs.gov/newsroom/child-and-dependent-care-credit-faqs" target="_blank" rel="nofollow noopener">child and dependent care credit</a>.</p>
<p>"This is a biggie. It was significantly expanded," said Kathy Pickering, Chief Tax Officer, The Tax Institute at H&amp;R Block.</p>
<p>The credit is based on your income and calculated as a percentage of the qualifying expenses you incurred — which this year is 50%, up from 35% in the years prior, although that percentage is reduced for those making more than $125,000.</p>
<p>Qualifying expenses are minus any employer-provided dependent care benefits (e.g., money you put into a tax-advantaged flexible spending account).</p>
<p>All in, <a href="https://www.irs.gov/newsroom/looking-ahead-how-the-american-rescue-plan-affects-2021-taxes-part-1#:~:text=The%20maximum%20credit%20in%202021,two%20or%20more%20qualifying%20individuals.&amp;text=This%20means%20an%20eligible%20taxpayer,owe%20no%20federal%20income%20tax." target="_blank" rel="nofollow noopener">the credit this year</a> could reduce your tax bill — or increase your refund — by up to $4,000 for one dependent or $8,000 for two or more. Prior to 2021, the credit would only have done so by $1,050 or $2,100, respectively.</p>
<h3>2. A temporary expansion of the child tax credit</h3>
<p>The maximum value of the <a href="https://www.irs.gov/newsroom/looking-ahead-how-the-american-rescue-plan-affects-2021-taxes-part-2" target="_blank" rel="nofollow noopener">child tax credit</a> is temporarily $3,000 per child ages 6 through 17 and $3,600 per child ages 5 and under.</p>
<p>Unlike in prior years, the credit is fully refundable for 2021, meaning you can get the maximum amount of the credit even if it exceeds your federal income tax liability for the year.</p>
<p>Except for the wealthiest households, "anyone with children ages 17 and below is likely eligible to claim the child tax credit," Pickering said.</p>
<p>And for the first time, the IRS made advanced monthly payments on that credit, from July through December. So you may already have received about half of your credit and can claim the other half on your return. To help with that calculation, the <a href="https://www.irs.gov/newsroom/irs-sending-information-letters-to-recipients-of-advance-child-tax-credit-payments-and-third-economic-impact-payments" target="_blank" rel="nofollow noopener">IRS will send you a letter (Letter 6419)</a> detailing the amount you've already received, which you should use to reconcile how much more you are due. The amount may be different than you expect.</p>
<p>Here's why: The advanced payments were calculated based on your 2020 or 2019 income and family situation. But the final calculation will be based on your 2021 information, which may change how much you're eligible for.</p>
<p>For instance, if you had another child in 2021 you may be entitled to more than your advanced payments reflect.</p>
<p>Or you may have gotten paid too much if, for example, you're divorced and changed which parent could claim a child on their tax return. The same might be true if you made more money in 2021 or one of your children turned 18. Whether you have to "repay" the excess you got — which most likely means you just claim less of a credit for the first half of last year — depends on your income.</p>
<p>Those making less than $40,000 ($60,000 if married) get full repayment protection. But if you're making more than $80,000 (or $120,000 if married) you may have to repay. (Here is the <a href="https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-topic-h-reconciling-your-advance-child-tax-credit-payments-on-your-2021-tax-return" target="_blank" rel="nofollow noopener">IRS's FAQ</a> on the issue.)</p>
<h3>3. Claim a recovery rebate credit</h3>
<p>Since the pandemic began, the IRS has sent out three rounds of Economic Impact Payments to eligible Americans, the last of which went out in 2021.</p>
<p>If you got that third payment, the <a href="https://www.irs.gov/newsroom/irs-sending-information-letters-to-recipients-of-advance-child-tax-credit-payments-and-third-economic-impact-payments" target="_blank" rel="nofollow noopener">IRS will send you a letter (Letter 6475)</a> detailing how much you were paid. You should report that information on your return.</p>
<p>But if you didn't get the third payment — or perhaps now qualify for more than you were paid because your income or family situation changed — you should review whether to claim the refundable <a href="https://www.irs.gov/newsroom/recovery-rebate-credit" target="_blank" rel="nofollow noopener">recovery rebate credit</a>.</p>
<p>"Individuals who didn't qualify for a third Economic Impact Payment or got less than the full amount, may be eligible to claim the 2021 recovery rebate credit based on their 2021 tax year information," the IRS noted.</p>
<p>If you got a stimulus payment but your 2021 income would have disqualified you, there's good news. "You do not need to repay the third stimulus payment — which was based on your 2019 or 2020 income — if your 2021 income would have disqualified you from all or part of the payment," said Mark Luscombe, principal analyst at Wolters Kluwer Tax &amp; Accounting.</p>
<h3>4. Expansion of the Earned Income Tax Credit</h3>
<p>For 2021 only, low- and moderate-income wage earners who <a href="https://crsreports.congress.gov/product/pdf/IN/IN11610#:~:text=Prior%20to%20ARPA%2C%20for%202021,unmarried%20or%20%2414%2C820%20if%20married." target="_blank" rel="nofollow noopener">do not have qualifying children</a> may be eligible for a larger <a href="https://www.irs.gov/pub/irs-pdf/p596.pdf" target="_blank" rel="nofollow noopener">Earned Income Tax Credit</a> than before.</p>
<p>The American Rescue Plan nearly tripled the maximum credit available to $1,502.</p>
<p>To qualify, your earned income for 2021 must be below $21,430 ($27,380 if married filing jointly). And on a permanent basis for all EITC recipients, the amount of <a href="https://www.irs.gov/newsroom/looking-ahead-how-the-american-rescue-plan-affects-2021-taxes-part-2" target="_blank" rel="nofollow noopener">investment income</a> you may have on top of your wages and still claim the credit increased to $10,000.</p>
<p>The credit is also available for the first time to childless workers as young as 19 and workers 65 and older.</p>
<p>For people who do have qualifying children, if they earn $57,414 or less, they may qualify for the EITC. And depending how many kids they have, they could get a maximum credit of $6,728.</p>
<h3>5. Special charitable tax deduction</h3>
<p>Normally, only tax filers who itemize deductions can deduct their charitable contributions. But the IRS once again is allowing those who take the standard deduction — which is the majority of tax filers — to deduct up to $300 in cash to qualifying charities. And this year, married couples filing jointly may deduct up to $600.</p>
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		<title>IRS says tax brackets will be higher in 2022 due to surging inflation</title>
		<link>https://cincylink.com/2021/11/15/irs-says-tax-brackets-will-be-higher-in-2022-due-to-surging-inflation/</link>
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		<pubDate>Mon, 15 Nov 2021 05:29:30 +0000</pubDate>
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					<description><![CDATA[MICHELLE: BECAUSE OF SURGING CONSUMER PRICES, THE IRS JUST ANNOUNCED ADJUSTMENTS TO FEDERAL INCOME BRACKETS. WESH 2’S KELSI THORUD SPOKE WITH A FINANCIAL PLANNER ABOUT WHAT YOU NEED TO BE AWA ORE KELSI: 2022’S INCOME TAX BRKEACTS WILL BE HIGHER. THE IRS MAKING THE ANNOUNCEMENT THIS WEEK. THEY MOVED IT BY 6.2 %.HEY MOVED IT &#8230;]]></description>
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											MICHELLE: BECAUSE OF SURGING CONSUMER PRICES, THE IRS JUST ANNOUNCED ADJUSTMENTS TO FEDERAL INCOME BRACKETS. WESH 2’S KELSI THORUD SPOKE WITH A FINANCIAL PLANNER ABOUT WHAT YOU NEED TO BE AWA ORE KELSI: 2022’S INCOME TAX BRKEACTS WILL BE HIGHER. THE IRS MAKING THE ANNOUNCEMENT THIS WEEK.  THEY MOVED IT BY 6.2 %.HEY MOVED IT BY 6.2
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<p>IRS says tax brackets will be higher in 2022 due to surging inflation</p>
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					Updated: 11:10 PM EST Nov 13, 2021
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					The IRS announced this week that 2022's income tax brackets will be higher."They moved it by 6.2%," Joe Bert, a Central Florida certified financial planner, said.Bert noted that 6.2% is a significant jump."Generally, the tax bracket adjustments are only one maybe 2% per year," Bert said.The reason behind the larger adjustment is the recent spike in inflation, he said."With the increase we've had in inflation, Social Security's adjusted and the tax brackets adjusted. There's supposed to be an index for inflation and that's what happened,” Bert said.Bert said it could save some money in 2023."If your income hasn't changed much, you're probably going to pay a little less in taxes,” Bert said.The IRS is also increasing the standard deduction. It will increase to $25,900 for married couples filing together, $12,950 for single taxpayers and $19,400 for heads of household.The changes will apply to 2022 tax returns which are not filed until 2023.
				</p>
<div class="article-content--body-text">
					<strong class="dateline">ORLANDO, Fla. —</strong> 											</p>
<p>The IRS announced this week that 2022's income tax brackets will be higher.</p>
<p><!-- article/blocks/side-floater --></p>
<p><!-- article/blocks/side-floater --></p>
<p>"They moved it by 6.2%," Joe Bert, a Central Florida certified financial planner, said.</p>
<p>Bert noted that 6.2% is a significant jump.</p>
<p>"Generally, the tax bracket adjustments are only one maybe 2% per year," Bert said.</p>
<p>The reason behind the larger adjustment is the recent spike in inflation, he said.</p>
<p>"With the increase we've had in inflation, Social Security's adjusted and the tax brackets adjusted. There's supposed to be an index for inflation and that's what happened,” Bert said.</p>
<p>Bert said it could save some money in 2023.</p>
<p>"If your income hasn't changed much, you're probably going to pay a little less in taxes,” Bert said.</p>
<p>The IRS is also increasing the standard deduction. It will increase to $25,900 for married couples filing together, $12,950 for single taxpayers and $19,400 for heads of household.</p>
<p>The changes will apply to 2022 tax returns which are not filed until 2023.</p>
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		<title>What&#8217;s a &#8216;wealth tax&#8217; and how would it work?</title>
		<link>https://cincylink.com/2021/10/27/whats-a-wealth-tax-and-how-would-it-work/</link>
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		<dc:creator><![CDATA[cincylink]]></dc:creator>
		<pubDate>Wed, 27 Oct 2021 04:49:55 +0000</pubDate>
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					<description><![CDATA[Video above: President Biden pushes for budget dealTo help pay for his big economic and social agenda, President Joe Biden is looking to go where the big money is: billionaires.Biden never endorsed an outright “wealth tax” when campaigning last year. But his more conventional proposed rate hikes on the income of large corporations and the &#8230;]]></description>
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<p>
					Video above: President Biden pushes for budget dealTo help pay for his big economic and social agenda, President Joe Biden is looking to go where the big money is: billionaires.Biden never endorsed an outright “wealth tax” when campaigning last year. But his more conventional proposed rate hikes on the income of large corporations and the wealthiest Americans have hit a roadblock.That leaves a special tax on the assets, not the income, of billionaires being proposed by a Senate Democrat as a possible vehicle to help pay for child care, universal pre-kindergarten, child tax credits, family leave and environmental initiatives.Biden has vowed that his programs will not add a penny to the deficit, which means selling to Congress and voters a tax on the wealthiest .0005% of Americans. Some details on the proposed billionaires tax:HOW WOULD IT WORK?Essentially, billionaires earn the bulk of their money off their wealth. This might be from the stock market. It could include, once sold, beachfront mansions or the ownership of rare art and antiquities. A triceratops skeleton.This new tax would apply solely to people with at least $1 billion in assets or $100 million in income for three straight years. These standards mean that just 700 taxpayers would face the additional tax on increases to their wealth, according to a description obtained by The Associated Press of the proposal of Senate Finance Committee Chairman Ron Wyden of Oregon.On tradeable items such as stocks, billionaires would still pay a tax even if they held on to the asset. They would be taxed on any increases in value and take deductions on losses. Under current law, those assets get taxed only when they're sold.Billionaires would also face an additional tax on non-tradeable assets such as real estate and business interests once those assets are sold. During the first year of the proposed tax, the billionaires would also owe taxes on any built-in gains that predate the tax.HOW MUCH MONEY WOULD IT RAISE?House Speaker Nancy Pelosi estimated Sunday on CNN that the tax would raise $200 billion to $250 billion. This is a meaningful sum, but it's well shy of the nearly $2 trillion in proposed additional spending over 10 years being negotiated right now. This means that additional levies such as the global minimum tax and increased enforcement dollars for the IRS would still be needed to help close the gap.And the forecasts for revenue from the wealth tax are highly debatable.“It’s just impossible to implement,” said Allison Schrager, a senior fellow at the conservative Manhattan Institute. “There’s a lot of evidence that these things don’t work, and I’ve never heard an explanation of how this could be workable.”WHY WOULD BIDEN GO THIS ROUTE?The president would rather raise corporate tax rates and rates on wealthy individuals. That was his initial proposal, but he's got to appease West Virginia Sen. Joe Manchin and Arizona Sen. Kyrsten Sinema. Those are the two make-or-break Democratic votes in the evenly split Senate.Sinema objected to higher rates, which brought the wealth tax into play as an alternative.The idea gained steam after the publication of French economist Thomas Piketty's book “Capital in the Twenty-First Century.” Massachusetts Sen. Elizabeth Warren made a 2% wealth tax a trademark policy in the 2020 Democratic presidential primaries, and fellow candidate Bernie Sanders, the senator from Vermont, proposed his own wealth tax.Biden never jumped on that bandwagon. But he did make higher taxes on the wealthy a key promise, saying no one earning less than $400,000 would pay more.ARE BILLIONAIRES REALLY THAT RICH?Seems that way.There is a legitimate debate about the optimal forms of taxation. Is it better for the economy for the wealthy to keep their assets invested in new businesses? Or, is it better for some of their money to go to the government to help fund programs like child care, universal pre-K and shifts to renewable energy?What is clear is that the wealthy do have money to tax, should the government wish to do it.America's billionaires have seen their collected wealth surge 70% since the start of the pandemic to over $5 trillion, according to an analysis by the pro-wealth-tax Americans for Tax Fairness and the Institute for Policy Studies Program on Inequality. That gain from March 18, 2020, to this past month is equal in size to Biden's spending plans over 10 years.“Right now, billionaires are not paying a dime in taxes on their fabulous income gains from their stock holdings during the pandemic,” said Frank Clemente, executive director of Americans for Tax Fairness. “The billionaires income tax would tax the increase in the value of those assets each year just like workers’ wages are taxed."There were 614 U.S. billionaires at the start of the pandemic, a total that has now grown to 745.Part of what makes the coronavirus unique is that many poorer Americans also became wealthier, but they did so at a much slower pace than billionaires.Federal Reserve data indicate that the net worth of the bottom 90% of Americans — a group that includes the middle class — rose by roughly 22%. For many Americans, the wealth increase reflected a rising stock market, higher home values and unprecedented government aid in the form of direct checks and forgivable payroll loans to small businesses.CAN BILLIONAIRES ESCAPE TAXATION?They've found ways before.They can hire armadas of lawyers, accountants and others to minimize their tax burdens. The news outlet ProPublica revealed various tax shelters with IRS data earlier this year, and the recent Pandora Papers showed there is a global industry to shelter the assets of the politically powerful and extremely wealthy.The ProPublica investigation showed that Warren Buffett paid an average rate of 19%. Amazon founder Jeff Bezos paid 23%, while Tesla's Elon Musk was at roughly 30%. The top tax rate on income earned from labor is 37%, but the tax on capital gains is a lower 20% and that favors those with extreme wealth. The lower capital gains rate can also encourage more investment in new companies that help the economy grow.A White House analysis in September indicated the country's 400 wealthiest families paid an average federal income tax rate of 8.2% between 2010 and 2018. The administration's fundamental message is that a rate this low is unfair because middle class families often pay a greater share of their income in taxes.The bottom-line question for Democratic lawmakers is how to close or at least narrow the escape hatches for those with extreme wealth. It could require calculations such as the “deferral recapture amount” and other technicalities that are likely to baffle most of America. But the writing of the tax law and its enforcement will determine just how successful a wealth tax would be — and perhaps the fate of Biden's big agenda as well.___AP writer Will Weissert contributed to this report.
				</p>
<div>
					<strong class="dateline">WASHINGTON —</strong> 											</p>
<p><strong><em><strong>Video above: President </strong>Biden pushes for budget deal</em></strong></p>
<p><strong><em/></strong>To help pay for his big economic and social agenda, President Joe Biden is looking to go where the big money is: billionaires.</p>
<p><!-- article/blocks/side-floater --></p>
<p><!-- article/blocks/side-floater --></p>
<p>Biden never endorsed an outright “wealth tax” when campaigning last year. But his more conventional proposed rate hikes on the income of large corporations and the wealthiest Americans have hit a roadblock.</p>
<p>That leaves a special tax on the assets, not the income, of billionaires being proposed by a Senate Democrat as a possible vehicle to help pay for child care, universal pre-kindergarten, child tax credits, family leave and environmental initiatives.</p>
<p>Biden has vowed that his programs will not add a penny to the deficit, which means selling to Congress and voters a tax on the wealthiest .0005% of Americans. Some details on the proposed billionaires tax:</p>
<p>HOW WOULD IT WORK?</p>
<p>Essentially, billionaires earn the bulk of their money off their wealth. This might be from the stock market. It could include, once sold, beachfront mansions or the ownership of rare art and antiquities. A <a href="https://apnews.com/article/sports-lifestyle-europe-paris-skeleton-d265bbd0ed0f971388cecba8d2948e9d" rel="nofollow">triceratops skeleton.</a></p>
<p>This new tax would apply solely to people with at least $1 billion in assets or $100 million in income for three straight years. These standards mean that just 700 taxpayers would face the additional tax on increases to their wealth, according to a description obtained by The Associated Press of the proposal of Senate Finance Committee Chairman Ron Wyden of Oregon.</p>
<p>On tradeable items such as stocks, billionaires would still pay a tax even if they held on to the asset. They would be taxed on any increases in value and take deductions on losses. Under current law, those assets get taxed only when they're sold.</p>
<p>Billionaires would also face an additional tax on non-tradeable assets such as real estate and business interests once those assets are sold. During the first year of the proposed tax, the billionaires would also owe taxes on any built-in gains that predate the tax.</p>
<p>HOW MUCH MONEY WOULD IT RAISE?</p>
<p>House Speaker Nancy Pelosi estimated Sunday on CNN that the tax would raise $200 billion to $250 billion. This is a meaningful sum, but it's well shy of the nearly $2 trillion in proposed additional spending over 10 years being negotiated right now. This means that additional levies such as the global minimum tax and increased enforcement dollars for the IRS would still be needed to help close the gap.</p>
<p>And the forecasts for revenue from the wealth tax are highly debatable.</p>
<p>“It’s just impossible to implement,” said Allison Schrager, a senior fellow at the conservative Manhattan Institute. “There’s a lot of evidence that these things don’t work, and I’ve never heard an explanation of how this could be workable.”</p>
<p>WHY WOULD BIDEN GO THIS ROUTE?</p>
<p>The president would rather raise corporate tax rates and rates on wealthy individuals. That was his initial proposal, but he's got to appease West Virginia Sen. Joe Manchin and Arizona Sen. Kyrsten Sinema. Those are the two make-or-break Democratic votes in the evenly split Senate.</p>
<p>Sinema objected to higher rates, which brought the wealth tax into play as an alternative.</p>
<p>The idea gained steam after the publication of French economist Thomas Piketty's book “Capital in the Twenty-First Century.” Massachusetts Sen. Elizabeth Warren made a 2% wealth tax a trademark policy in the 2020 Democratic presidential primaries, and fellow candidate Bernie Sanders, the senator from Vermont, proposed his own wealth tax.</p>
<p>Biden never jumped on that bandwagon. But he did make higher taxes on the wealthy a key promise, saying no one earning less than $400,000 would pay more.</p>
<p>ARE BILLIONAIRES REALLY THAT RICH?</p>
<p>Seems that way.</p>
<p>There is a legitimate debate about the optimal forms of taxation. Is it better for the economy for the wealthy to keep their assets invested in new businesses? Or, is it better for some of their money to go to the government to help fund programs like child care, universal pre-K and shifts to renewable energy?</p>
<p>What is clear is that the wealthy do have money to tax, should the government wish to do it.</p>
<p>America's billionaires have seen their collected wealth surge 70% since the start of the pandemic to over $5 trillion, according to an analysis by the pro-wealth-tax Americans for Tax Fairness and the Institute for Policy Studies Program on Inequality. That gain from March 18, 2020, to this past month is equal in size to Biden's spending plans over 10 years.</p>
<p>“Right now, billionaires are not paying a dime in taxes on their fabulous income gains from their stock holdings during the pandemic,” said Frank Clemente, executive director of Americans for Tax Fairness. “The billionaires income tax would tax the increase in the value of those assets each year just like workers’ wages are taxed."</p>
<p>There were 614 U.S. billionaires at the start of the pandemic, a total that has now grown to 745.</p>
<p>Part of what makes the coronavirus unique is that many poorer Americans also became wealthier, but they did so at a much slower pace than billionaires.</p>
<p>Federal Reserve data indicate that the net worth of the bottom 90% of Americans — a group that includes the middle class — rose by roughly 22%. For many Americans, the wealth increase reflected a rising stock market, higher home values and unprecedented government aid in the form of direct checks and forgivable payroll loans to small businesses.</p>
<p>CAN BILLIONAIRES ESCAPE TAXATION?</p>
<p>They've found ways before.</p>
<p>They can hire armadas of lawyers, accountants and others to minimize their tax burdens. The news outlet ProPublica revealed various tax shelters with IRS data earlier this year, and the recent Pandora Papers showed there is a global industry to shelter the assets of the politically powerful and extremely wealthy.</p>
<p>The ProPublica investigation showed that Warren Buffett paid an average rate of 19%. Amazon founder Jeff Bezos paid 23%, while Tesla's Elon Musk was at roughly 30%. The top tax rate on income earned from labor is 37%, but the tax on capital gains is a lower 20% and that favors those with extreme wealth. The lower capital gains rate can also encourage more investment in new companies that help the economy grow.</p>
<p>A <a href="https://www.whitehouse.gov/cea/blog/2021/09/23/what-is-the-average-federal-individual-income-tax-rate-on-the-wealthiest-americans/" rel="nofollow">White House analysis</a> in September indicated the country's 400 wealthiest families paid an average federal income tax rate of 8.2% between 2010 and 2018. The administration's fundamental message is that a rate this low is unfair because middle class families often pay a greater share of their income in taxes.</p>
<p>The bottom-line question for Democratic lawmakers is how to close or at least narrow the escape hatches for those with extreme wealth. It could require calculations such as the “deferral recapture amount” and other technicalities that are likely to baffle most of America. But the writing of the tax law and its enforcement will determine just how successful a wealth tax would be — and perhaps the fate of Biden's big agenda as well.</p>
<p>___</p>
<p>AP writer Will Weissert contributed to this report.</p>
</p></div>
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		<title>Some parents are missing the September child tax credit payment</title>
		<link>https://cincylink.com/2021/09/22/some-parents-are-missing-the-september-child-tax-credit-payment/</link>
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		<dc:creator><![CDATA[cincylink]]></dc:creator>
		<pubDate>Wed, 22 Sep 2021 04:08:15 +0000</pubDate>
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					<description><![CDATA[Though the Internal Revenue Service sent out the third monthly child tax credit payment last week, some families are still waiting for the funds.Angry parents have contacted CNN, taken to Twitter and posted to other online sites complaining that they did not receive the money on Sept. 15 as expected. Eligible families can get up &#8230;]]></description>
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<p>
					Though the Internal Revenue Service sent out the third monthly child tax credit payment last week, some families are still waiting for the funds.Angry parents have contacted CNN, taken to Twitter and posted to other online sites complaining that they did not receive the money on Sept. 15 as expected. Eligible families can get up to $300 for each child up to age 6 and up to $250 for each one ages 6 to 17.The agency, which distributed $15 billion in credits to about 35 million families last week, acknowledged Friday that "some individuals" had yet to receive their September payments, though they were sent ones for July and August. It also noted that these parents may not be able to see the status of the payment on the IRS' child tax credit portal. The August distribution, however, also didn't go that smoothly. The agency said last month that some families — fewer than 15% — who received direct deposit in July were mailed paper checks for August. But it expected to have the problem resolved in time for the September batch.The IRS, which acknowledged Friday that it was looking into the situation, did not immediately provide CNN with an update on Tuesday.John Belfiore, a father of two teen boys, is getting antsy. He lost his job as a telemarketer for a finance company in February after contracting COVID-19 and spending eight days on a ventilator. The monthly child tax credit payments of $500, along with the pandemic unemployment benefits, were helping keep his family of four afloat.But now that the enhanced unemployment benefits have ended, the child tax credit has become even more important for the Lake Forest, California, family. They received the funds for July and August via direct deposit, but the IRS portal says nothing about the September payment."I'm budgeting penny to penny," said Belfiore, who tried to call the agency but hung up after waiting on hold for an hour. "The $500 gives me gas money to get to interviews and keep the lights on."Here are more details about the expanded child tax credit:Who qualifies?Created by the Democrats' $1.9 trillion coronavirus relief package in March, the full enhanced credit is available for heads of households earning up to $112,500 a year and joint filers making up to $150,000, after which it begins to phase out.For many families, the credit then plateaus at $2,000 per child and starts to phase out for single parents earning more than $200,000 or for married couples with incomes above $400,000.More low-income parents are eligible for the child tax credit because the relief package made it fully refundable. It had been only partially refundable — leaving more than 26 million children unable to get the full credit because their families' incomes were too low, according to Treasury Department estimates.About half of Black and Latino children, as well as kids living in rural communities, received only a partial credit or no credit at all because their families' incomes were too low prior to the enhancement, said the left-leaning Center on Budget and Policy Priorities.The provision means that a single mother with a toddler and a second-grader who earns $12,000 a year would see her credit increase to $6,600 for 2021, up from about $1,425, according to the center.The Democrats' $3.5 trillion budget reconciliation bill seeks to make the credit fully refundable permanently. Parents who aren't citizens can receive the payments for their citizen children as long as they have individual taxpayer identification numbers (ITIN) and their children have Social Security numbers.Families can check their eligibility through this IRS website.How much will I get?That depends on your household income and family size.Eligible families can receive a total of up to $3,600 for each child under 6 and up to $3,000 for each one age 6 to 17 for 2021. That's an increase from the regular child tax credit of up to $2,000 for each child up to age 17. When will I see the money?Parents will receive half their credit on a monthly basis through the rest of the year. The payments will be made on the 15th of each month, unless that falls on a weekend or holiday.They can claim the other half when they file their 2021 taxes next year.Parents can check if they are enrolled to receive the advance payments at an IRS portal. They can also use it to provide or update their bank account information.Those who don't receive their monthly payments until later in the year will still get half the credit in 2021.Families who want to receive the payments as a lump sum can opt out of the monthly installments at the IRS portal.Some parents may not want to get the monthly payments, particularly if their incomes increase this year. The payments are credits toward families' tax liability for 2021, but are based on 2020 or 2019 income and household size. Some who get the advance credits could wind up receiving much smaller refunds — or even owing taxes — next spring when they complete their 2021 returns.The IRS advises parents whose incomes or circumstances change during the year to update their information through the agency's portal when it adds the functionality. The IRS can then adjust the monthly payments accordingly.Lawmakers, however, protected lower-income parents from potential overpayments. Heads of households making $50,000 or less and joint filers with incomes of $60,000 or less will not need to repay any excess payments.Do I have to do anything to get it?The vast majority of families get the credit automatically because they filed 2019 or 2020 returns claiming the credit.The IRS also sends the payments to Americans who previously used its non-filer portal to register for the stimulus checks. But families who haven't filed tax returns recently or used the non-filer tool must take action. They can use another IRS portal to register to receive the enhanced child tax credit. The sign-up tool allows users to provide the necessary information about their households and, if they choose, their bank accounts so the agency can directly deposit the funds.Parents can also go to GetCTC.org to file simplified returns and claim the enhanced credit. The site, which launched earlier this month, was developed by the non-profit Code for America, in collaboration with the White House and the Treasury Department. It is available in English and Spanish.The IRS portal has been criticized because the tool is only in English and does not work well on cell phones.
				</p>
<div>
<p>Though the Internal Revenue Service sent out the third monthly child tax credit payment last week, some families are still waiting for the funds.</p>
<p>Angry parents have contacted CNN, taken to Twitter and posted to other online sites complaining that they did not receive the money on Sept. 15 as expected. Eligible families can get up to $300 for each child up to age 6 and up to $250 for each one ages 6 to 17.</p>
<p>The agency, which distributed $15 billion in credits to about 35 million families last week, acknowledged Friday that "some individuals" had yet to receive their September payments, though they were sent ones for July and August. It also noted that these parents may not be able to see the status of the payment on the IRS' child tax credit portal. </p>
<p>The August distribution, however, also didn't go that smoothly. The agency said last month that some families — fewer than 15% — who received direct deposit in July were mailed paper checks for August. But it expected to have the problem resolved in time for the September batch.</p>
<p>The IRS, which acknowledged Friday that it was looking into the situation, did not immediately provide CNN with an update on Tuesday.</p>
<p>John Belfiore, a father of two teen boys, is getting antsy. He lost his job as a telemarketer for a finance company in February after contracting COVID-19 and spending eight days on a ventilator. The monthly child tax credit payments of $500, along with the pandemic unemployment benefits, were helping keep his family of four afloat.</p>
<p>But now that the enhanced unemployment benefits have ended, the child tax credit has become even more important for the Lake Forest, California, family. They received the funds for July and August via direct deposit, but the IRS portal says nothing about the September payment.</p>
<p>"I'm budgeting penny to penny," said Belfiore, who tried to call the agency but hung up after waiting on hold for an hour. "The $500 gives me gas money to get to interviews and keep the lights on."</p>
<h3>Here are more details about the expanded child tax credit:</h3>
<p><strong>Who qualifies?</strong></p>
<p>Created by the Democrats' $1.9 trillion coronavirus relief package in March, the full enhanced credit is available for heads of households earning up to $112,500 a year and joint filers making up to $150,000, after which it begins to phase out.</p>
<p>For many families, the credit then plateaus at $2,000 per child and starts to phase out for single parents earning more than $200,000 or for married couples with incomes above $400,000.</p>
<p>More low-income parents are eligible for the child tax credit because the relief package made it fully refundable. It had been only partially refundable — leaving more than 26 million children unable to get the full credit because their families' incomes were too low, according to Treasury Department estimates.</p>
<p>About half of Black and Latino children, as well as kids living in rural communities, received only a partial credit or no credit at all because their families' incomes were too low prior to the enhancement, said the left-leaning Center on Budget and Policy Priorities.</p>
<p>The provision means that a single mother with a toddler and a second-grader who earns $12,000 a year would see her credit increase to $6,600 for 2021, up from about $1,425, according to the center.</p>
<p>The Democrats' $3.5 trillion budget reconciliation bill seeks to make the credit fully refundable permanently. </p>
<p>Parents who aren't citizens can receive the payments for their citizen children as long as they have individual taxpayer identification numbers (ITIN) and their children have Social Security numbers.</p>
<p>Families can check their eligibility through <a href="https://www.irs.gov/credits-deductions/advance-child-tax-credit-eligibility-assistant" target="_blank" rel="nofollow noopener">this IRS website</a>.</p>
<p><strong>How much will I get?</strong></p>
<p>That depends on your household income and family size.</p>
<p>Eligible families can receive a total of up to $3,600 for each child under 6 and up to $3,000 for each one age 6 to 17 for 2021. That's an increase from the regular child tax credit of up to $2,000 for each child up to age 17. </p>
<p><strong>When will I see the money?</strong></p>
<p>Parents will receive half their credit on a monthly basis through the rest of the year. The payments will be made on the 15th of each month, unless that falls on a weekend or holiday.</p>
<p>They can claim the other half when they file their 2021 taxes next year.</p>
<p>Parents can check if they are enrolled to receive the advance payments at <a href="https://www.irs.gov/credits-deductions/child-tax-credit-update-portal" target="_blank" rel="nofollow noopener">an IRS portal</a>. They can also use it to provide or update their bank account information.</p>
<p>Those who don't receive their monthly payments until later in the year will still get half the credit in 2021.</p>
<p>Families who want to receive the payments as a lump sum can opt out of the monthly installments at the IRS portal.</p>
<p>Some parents may not want to get the monthly payments, particularly if their incomes increase this year. The payments are credits toward families' tax liability for 2021, but are based on 2020 or 2019 income and household size. Some who get the advance credits could wind up receiving much smaller refunds — or even owing taxes — next spring when they complete their 2021 returns.</p>
<p>The IRS advises parents whose incomes or circumstances change during the year to update their information through the agency's portal when it adds the functionality. The IRS can then adjust the monthly payments accordingly.</p>
<p>Lawmakers, however, protected lower-income parents from potential overpayments. Heads of households making $50,000 or less and joint filers with incomes of $60,000 or less will not need to repay any excess payments.</p>
<p><strong>Do I have to do anything to get it?</strong></p>
<p>The vast majority of families get the credit automatically because they filed 2019 or 2020 returns claiming the credit.</p>
<p>The IRS also sends the payments to Americans who previously used its non-filer portal to register for the stimulus checks. </p>
<p>But families who haven't filed tax returns recently or used the non-filer tool must take action. They can use another<a href="https://www.irs.gov/credits-deductions/child-tax-credit-non-filer-sign-up-tool" target="_blank" rel="nofollow noopener"> IRS portal</a> to register to receive the enhanced child tax credit. The sign-up tool allows users to provide the necessary information about their households and, if they choose, their bank accounts so the agency can directly deposit the funds.</p>
<p>Parents can also go to <a href="https://www.getctc.org/en" target="_blank" rel="nofollow noopener">GetCTC.org</a> to file simplified returns and claim the enhanced credit. The site, which launched earlier this month, was developed by the non-profit Code for America, in collaboration with the White House and the Treasury Department. It is available in English and Spanish.</p>
<p>The IRS portal has been criticized because the tool is only in English and does not work well on cell phones.</p>
</p></div>
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		<title>Letter sent to thousands of Americans includes false information about stimulus payments</title>
		<link>https://cincylink.com/2021/08/20/letter-sent-to-thousands-of-americans-includes-false-information-about-stimulus-payments/</link>
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		<pubDate>Fri, 20 Aug 2021 05:37:32 +0000</pubDate>
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					<description><![CDATA[Thousands of Americans were accidentally sent mail from the IRS saying they wouldn't be receiving a stimulus check.In a Q&#38;A response on the agency's website, IRS officials said those letters were sent to people whose 2019 tax returns could not be processed in time to issue last year's initial $1,200 stimulus payment. IRS officials say &#8230;]]></description>
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<p>
					Thousands of Americans were accidentally sent mail from the IRS saying they wouldn't be receiving a stimulus check.In a Q&amp;A response on the agency's website, IRS officials said those letters were sent to people whose 2019 tax returns could not be processed in time to issue last year's initial $1,200 stimulus payment.  IRS officials say the notice was intended to notify people whose stimulus checks could not be issued by Dec. 31, 2020, the deadline required by law. Anyone who was eligible for stimulus payments but did not receive them can claim a recovery rebate credit on their 2020 tax return.In some cases, however, the agency said letters included the following false information: "We applied a credit to your 2007 tax account due to new legislation. We used (offset) all or part of your economic stimulus payment to pay your federal tax as the law allows." "This notice is not accurate for anyone who received it," the IRS website says. "Since no payment was issued, no offsets occurred. We apologize for the confusion this may have caused. You can disregard the notice."For those who owe federal debts, the IRS said the first stimulus checks were offset only when individuals owed past-due child support. The second stimulus payments were ot offset for federal or state tax debts for any reason.   For more information about claiming the recovery rebate credit on your 2020 taxes to receive stimulus payments, click here.
				</p>
<div>
<p>Thousands of Americans were accidentally sent mail from the IRS saying they wouldn't be receiving a stimulus check.</p>
<p>In a Q&amp;A response on the agency's website, IRS officials said those letters were sent to people whose 2019 tax returns could not be processed in time to issue last year's initial $1,200 stimulus payment.  </p>
<p>IRS officials say the notice was intended to notify people whose stimulus checks could not be issued by Dec. 31, 2020, the deadline required by law. Anyone who was eligible for stimulus payments but did not receive them can claim a recovery rebate credit on their 2020 tax return.</p>
<p>In some cases, however, the agency said letters included the following false information: "We applied a credit to your 2007 tax account due to new legislation. We used (offset) all or part of your economic stimulus payment to pay your federal tax as the law allows." </p>
<p>"This notice is not accurate for anyone who received it," the IRS website says. "Since no payment was issued, no offsets occurred. We apologize for the confusion this may have caused. You can disregard the notice."</p>
<p>For those who owe federal debts, the IRS said the first stimulus checks were offset only when individuals owed past-due child support. The second stimulus payments were ot offset for federal or state tax debts for any reason.   </p>
<p>For more information about claiming the recovery rebate credit on your 2020 taxes to receive stimulus payments, <a data-entity-substitution="canonical" data-entity-type="node" data-entity-uuid="faa235ee-cdcb-4448-8d20-493b497c9c9e" href="https://www.irs.gov/newsroom/recovery-rebate-credit" title="Recovery Rebate Credit" rel="nofollow">click here</a>. </p>
</p></div>
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		<title>The new stimulus plan could affect your 2020 taxes. Here&#8217;s how</title>
		<link>https://cincylink.com/2021/07/14/the-new-stimulus-plan-could-affect-your-2020-taxes-heres-how/</link>
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		<dc:creator><![CDATA[cincylink]]></dc:creator>
		<pubDate>Wed, 14 Jul 2021 05:08:05 +0000</pubDate>
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					<description><![CDATA[As welcome as the American Rescue Plan is for many people, the fact that it was signed into law in the middle of tax filing season raises a number of questions.That's because some provisions may affect how you should prepare your 2020 tax return, including calculating the size of your refund. And nearly 56 million &#8230;]]></description>
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<p>
					As welcome as the American Rescue Plan is for many people, the fact that it was signed into law  in the middle of tax filing season raises a number of questions.That's because some provisions may affect how you should prepare your 2020 tax return, including calculating the size of your refund. And nearly 56 million people have already filed as of March 5.Here's what we know so far.Tax free unemployment benefitsThe main provision in the latest Covid relief package that affects 2020 taxable income applies to those who received unemployment compensation last year.The American Rescue Plan retroactively excludes the first $10,200 in benefits from federal income tax for households with incomes below $150,000 a year.That change will either decrease how much you owe the IRS or increase your refund, with the latter being most likely.At H&amp;R Block, for instance, "90% of our clients who are filing with unemployment compensation are getting a refund," said Kathy Pickering, the firm's chief tax officer.Your federal refund may grow larger not only because the initial $10,200 in benefits is now tax free. The provision will reduce your adjusted gross income and taxable income, and that may make you newly eligible for some tax credits that require your income to be below a certain threshold, Pickering said.The provision may also affect your state income tax return, too, if you live in a state with an income tax. That's because states will often base their computation of taxable income using either your federal adjusted gross income or taxable income."Your starting point will be reduced by the  exclusion," Pickering said.The IRS has issued this guidance sheet to explain how the change should be calculated and reported on your 2020 tax return. And it has said it also will provide an update for tax preparation software providers that will let filers incorporate the unemployment compensation change into their 2020 calculations.For those who have already filed their 2020 tax returns, sit tight. "They should not file an amended return at this time, until the IRS issues additional guidance," the agency said.Economic impact paymentsThe American Rescue Plan authorizes a third round of economic impact payments to go to households making below $160,000 ($80,000 for single filers). The payments are worth up to $1,400 per tax filer and for each of a filer's dependents -- whether those dependents are children or adults.While the payments won't affect your 2020 taxes directly, they may affect how quickly or slowly you'll want to file your 2020 return if you haven't already.Here's why: If the IRS doesn't already have your 2020 return on file, it will base the size of the payment it sends to you on your 2019 income. So, for example, if your 2019 income was too high to qualify, but you believe your 2020 income makes you eligible, you'll need to file your tax return in order to receive your payment."You may want to file your 2020 return as quickly and accurately as you can to ensure you've done everything you can to get the most accurate payment," Pickering said.That said, if you can't file quickly and expect you'll be owed more money, you'll eventually get all the money that is due to you. When you file your 2020 return, the agency will automatically review your account to see if you're eligible for additional funds and, if so, it will send you a supplemental payment.To ensure the fastest payment, Treasury and IRS officials are urging people to file electronically and choose direct deposit for payment.Conversely, if your 2019 income would make you eligible for a larger economic impact payment than your 2020 income, you might want to hold off filing your 2020 return for a bit."If the taxpayer received more than that to which he or she is ultimately entitled, it does not have to be repaid," said Mark Luscombe, Principal Federal Tax Analyst at Wolters Kluwer Tax &amp; Accounting.The only exception, Luscombe said, would be if you were in a category of people who are not allowed to receive a stimulus payment in the first place, such as a nonresident alien, anyone who is claimed as a dependent on another person's tax return or someone who has died.
				</p>
<div>
					<strong class="dateline">CNN —</strong> 											</p>
<p>As welcome as the American Rescue Plan is for many people, the fact that it was signed into law  in<strong> </strong>the middle of tax filing season raises a number of questions.</p>
<p>That's because some provisions may affect how you should prepare your 2020 tax return, including calculating the size of your refund. And nearly 56 million people have already filed as of March 5.</p>
<p>Here's what we know so far.</p>
<h3>Tax free unemployment benefits</h3>
<p>The main provision in the latest Covid relief package that affects 2020 taxable income applies to those who received unemployment compensation last year.</p>
<p>The American Rescue Plan retroactively <a href="https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemployment-compensation" target="_blank" rel="nofollow noopener">excludes the first $10,200</a> in benefits from federal income tax for households with incomes below $150,000 a year.</p>
<p>That change will either decrease how much you owe the IRS or increase your refund, with the latter being most likely.</p>
<p>At H&amp;R Block, for instance, "90% of our clients who are filing with unemployment compensation are getting a refund," said Kathy Pickering, the firm's chief tax officer.</p>
<p>Your federal refund may grow larger not only because the initial $10,200 in benefits is now tax free. The provision will reduce your adjusted gross income and taxable income, and that may make you newly eligible for some tax credits that require your income to be below a certain threshold, Pickering said.</p>
<p>The provision may also affect your state income tax return, too, if you live in a state with an income tax. That's because states will often base their computation of taxable income using either your federal adjusted gross income or taxable income.</p>
<p>"Your starting point will be reduced by the [unemployment compensation] exclusion," Pickering said.</p>
<p>The IRS has issued this <a href="https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemployment-compensation" target="_blank" rel="nofollow noopener">guidance sheet</a> to explain how the change should be calculated and reported on your 2020 tax return. And it has said it also will provide an update for tax preparation software providers that will let filers incorporate the unemployment compensation change into their 2020 calculations.</p>
<p>For those who have already filed their 2020 tax returns, sit tight. "They should not file an amended return at this time, until the IRS issues additional guidance," the agency said.</p>
<h3>Economic impact payments</h3>
<p>The American Rescue Plan authorizes a third round of economic impact payments to go to households making below $160,000 ($80,000 for single filers). The payments are worth up to $1,400 per tax filer and for each of a filer's dependents -- whether those dependents are children or adults.</p>
<p>While the payments won't affect your 2020 taxes directly, they may affect how quickly or slowly you'll want to file your 2020 return if you haven't already.</p>
<p>Here's why: If the IRS doesn't already have your 2020 return on file, it will base the size of the payment it sends to you on your 2019 income. So, for example, if your 2019 income was too high to qualify, but you believe your 2020 income makes you eligible, you'll need to file your tax return in order to receive your payment.</p>
<p>"You may want to file your 2020 return as quickly and accurately as you can to ensure you've done everything you can to get the most accurate payment," Pickering said.</p>
<p>That said, if you can't file quickly and expect you'll be owed more money, you'll eventually get all the money that is due to you. When you file your 2020 return, the agency will automatically review your account to see if you're eligible for additional funds and, if so, it will send you a supplemental payment.</p>
<p>To ensure the fastest payment, Treasury and IRS officials are urging people to file electronically and choose direct deposit for payment.</p>
<p>Conversely, if your 2019 income would make you eligible for a <em>larger</em> economic impact payment than your 2020 income, you might want to hold off filing your 2020 return for a bit.</p>
<p>"If the taxpayer received more than that to which he or she is ultimately entitled, it does not have to be repaid," said Mark Luscombe, Principal Federal Tax Analyst at Wolters Kluwer Tax &amp; Accounting.</p>
<p>The only exception, Luscombe said, would be if you were in a category of people who are not allowed to receive a stimulus payment in the first place, such as a nonresident alien, anyone who is claimed as a dependent on another person's tax return or someone who has died.</p>
</p></div>
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		<title>$1.3 billion in tax refunds remain unclaimed from 2017</title>
		<link>https://cincylink.com/2021/06/21/1-3-billion-in-tax-refunds-remain-unclaimed-from-2017/</link>
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		<dc:creator><![CDATA[cincylink]]></dc:creator>
		<pubDate>Mon, 21 Jun 2021 04:29:32 +0000</pubDate>
				<category><![CDATA[Cincy News]]></category>
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		<category><![CDATA[2017 tax refunds]]></category>
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					<description><![CDATA[Since 2017, the IRS owes -- that’s right, owes – Americans $1.3 billion in unclaimed tax returns, the agency said on Monday. The IRS said that in total, 1.3 million tax payers who did not file a 2017 Form 1040 federal income tax return are owed a refund. The IRS said the median refund would &#8230;]]></description>
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<p>Since 2017, the IRS owes -- that’s right, owes – Americans $1.3 billion in unclaimed tax returns, the agency said on Monday.</p>
<p>The IRS said that in total, 1.3 million tax payers who did not file a 2017 Form 1040 federal income tax return are owed a refund. The IRS said the median refund would be for $865.</p>
<p>The IRS says that the law provides most taxpayers a three-year window to claim the refund. If they do not file a return within three years and goes unclaimed, the money becomes the property of the US government. The deadline, the IRS says, is May 17.</p>
<p>“The IRS wants to help taxpayers who are due refunds but haven’t filed their 2017 tax returns yet,” said IRS Commissioner Chuck Rettig. “Time is quickly running out for these taxpayers. There’s only a three-year window to claim these refunds, and the window closes on May 17. We want to help people get these refunds, but they will need to quickly file a 2017 tax return.”</p>
<p>The IRS said that many low- and moderate-income workers lose out on the Earned Income Tax Credit by not filing a tax return. In 2017, the credit was worth up to $6,318. In 2020, that figure jumped to $6,660, depending on income and number of children. </p>
<p>To assist in finding out if you’re eligible, the IRS encourages Americans to obtain a tax transcript from 2017 by clicking <u><a class="Link" href="https://urldefense.proofpoint.com/v2/url?u=https-3A__lnks.gd_l_eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMjgsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMTA0MDUuMzgyNDc5NzEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L2luZGl2aWR1YWxzL2dldC10cmFuc2NyaXB0In0.C75W2YF8v4D4r-5FS9NwoXarEpeMjv-5F3tL4gKADh8GiDY_s_779162647_br_101476431258-2Dl&amp;d=DwMFAA&amp;c=aLv4kG3eFBuAUFgZFQ07JQ&amp;r=g-R9s1qMSMD8zsW8W0Vb5DzbFPjlK-UeslVsoWi5rx8&amp;m=jUavqWK43R3WOKk08e4OOC9IQr30PDJ5Ekq7uDdCRPo&amp;s=SxKKoJnKRDlQVhp6sq1NgUZOL3GM0vmZnc6aiZei_a0&amp;e=">here.</a></u></p>
<p>To see if you qualify for the Earned Income Tax Credit, click <u><a class="Link" href="https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant">here.</a></u></p>
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		<title>Can Cincinnati continue to tax the income of remote workers?</title>
		<link>https://cincylink.com/2021/06/05/can-cincinnati-continue-to-tax-the-income-of-remote-workers/</link>
					<comments>https://cincylink.com/2021/06/05/can-cincinnati-continue-to-tax-the-income-of-remote-workers/#respond</comments>
		
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		<pubDate>Sat, 05 Jun 2021 04:18:36 +0000</pubDate>
				<category><![CDATA[Cincy News]]></category>
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		<category><![CDATA[American Rescue Plan]]></category>
		<category><![CDATA[assistant city manager Chris Bingham]]></category>
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		<guid isPermaLink="false">https://cincylink.com/?p=56261</guid>

					<description><![CDATA[CINCINNATI — The city budget is finally balanced, but it took $67 million of American Rescue Plan funding to make it happen. On Thursday, at the first public hearing for Cincinnati’s 2022 budget, groups made their case to receive a portion of what’s left. But members of council are still uncertain about the city’s financial &#8230;]]></description>
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<p>CINCINNATI — The city budget is finally balanced, but it took $67 million of American Rescue Plan funding to make it happen. On Thursday, at the first public hearing for Cincinnati’s 2022 budget, groups made their case to receive a portion of what’s left.</p>
<p>But members of council are still uncertain about the city’s financial future. Decisions made in Columbus could radically change Cincinnati’s plans.</p>
<p>The issue: "There is significant uncertainty in the short term regarding the extent of income taxes,” said assistant city manager Chris Bingham.</p>
<p>Earnings tax, which funds a majority of Cincinnati’s city budget, can usually only be collected from people working within city limits.</p>
<p>During the pandemic, Gov. Mike DeWine signed an order allowing Ohio cities to collect the tax from people working remotely for local companies while living elsewhere.</p>
<p><b>RELATED: Remote workers want to stop paying city income taxes</b></p>
<p>That measure isn’t permanent, however. And if people don’t return to working in-person, inside city limits, the tax revenue they generated for local government will be lost.</p>
<p>Worst of all, from a local government’s point of view: The Ohio House and Senate are considering bills that would require cities to refund the remote workers who paid earnings tax during the pandemic.</p>
<p>“It would be absolutely devastating for a city like Cincinnati that is so dependent on the earnings tax,” said Councilmember David Mann, who chairs City Council’s budget and finance committee.</p>
<p>But Cincinnati would also have time to plan. Mann said he and his colleagues are ready to use American Rescue Plan money to fill the tax gap this year and next if necessary.</p>
<p>“It’s not like the money disappears the next day” if a new bill is passed, Mann said. “One of the things we did when we made estimates about how to use the stimulus money was to increase our contingency because of those issues.”</p>
<p>The city budget must be finalized and approved by the end of June.</p>
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