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Reduce the Impact of the 3.8% Net Investment Income Tax

RogerRossmeisl

High-income taxpayers face a regular income tax rate of 35% or 37%. net investment income tax (NIIT) that’s imposed in addition to regular income tax. Net investment income includes interest, dividend, annuity, royalty. Net Investment Income Tax appeared first on Roger Rossmeisl, CPA.

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Is Your Income Tax Withholding Adequate?

RogerRossmeisl

When you filed your federal tax return this year, were you surprised to find you owed money? Receiving a tax refund essentially means you’re giving the government an interest-free loan. Adjust if necessary Taxpayers should periodically review their tax situations and adjust withholding, if appropriate.

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Your Estate Plan: Don’t Forget About Income Tax Planning

RogerRossmeisl

As a result of the current estate tax exemption amount ($12.06 million in 2022), many people no longer need to be concerned with federal estate tax. Now, because many estates won’t be subject to estate tax, more planning can be devoted to saving income taxes for your heirs.

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Plan Ahead for the 3.8% Net Investment Income Tax

RogerRossmeisl

High-income taxpayers face a 3.8% net investment income tax (NIIT) that’s imposed in addition to regular income tax. The amount subject to the tax is the lesser of your net investment income or the amount by which your MAGI exceeds the threshold ($250,000, $200,000, or $125,000) that applies to you.

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Projected 2024 Income Tax Brackets

CPA Practice

Bloomberg Tax & Accounting released its 2024 Projected U.S. Tax Rates, which indicates inflation adjusted amounts in the tax code will increase 5.4% See projected tax bracket tables below.] Bloomberg Tax’s annual Projected U.S. Act that affect tax planning for corporate taxpayers in certain industries.

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Tax Consequences of Employer-Provided Life Insurance

RogerRossmeisl

However, if group term life insurance is part of your benefits package, and the coverage is higher than $50,000, there may be undesirable income tax implications. But the employer-paid cost of group term coverage in excess of $50,000 is taxable income to you. In other words, it’s “phantom income.”

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Senate Democrats propose billionaire income tax

Accounting Today

A group of Senate Democrats and independents introduced legislation Thursday to curb tax breaks for billionaires.