Taxes

David Madison | Photodisc | Getty ImagesA federal tax break that's available to car buyers for going electric may work differently starting next year.Under the Inflation Reduction Act — which received Senate approval on Sunday and is expected to clear the House this week — a tax credit worth up to $7,500 for buyers of new all-electric cars and hybrid plug-ins would be extended through 2032. The bill would also create a separate tax credit worth a maximum $4,000 for used versions of these vehicles.Yet the measure also…

Jeffrey Coolidge | Photodisc | Getty ImagesAs the Democrats' spending plan moves closer to a House vote, one of the more controversial provisions — nearly $80 billion in IRS funding, with $45.6 billion for "enforcement" — has raised questions about who the agency may target for audits.IRS Commissioner Charles Rettig said these resources are "absolutely not about increasing audit scrutiny on small businesses or middle-income Americans," in a recent letter to the Senate.However, with the investment projected to bring in…

Anti-abortion activists demonstrate outside the Supreme Court of the United States in Washington, June 13, 2022.Evelyn Hockstein | ReutersResidents of Georgia may now claim embryos as dependents on their state income tax returns.Any "unborn child with a detectable human heartbeat," may qualify for a $3,000 state income tax deduction for 2022, effective July 20, according to guidance released by the state's Department of Revenue.The announcement follows the U.S. Supreme Court's decision to overturn Roe v. Wade, ending the…

Erik McGregor | LightRocket | Getty ImagesAs Democrats plow forward with a slimmed-down reconciliation package, House lawmakers are separately pushing another piece of President Joe Biden's agenda: taxing the ultra-wealthy. Reps. Don Beyer, D-Va., and Steve Cohen, D-Tenn., have introduced the Billionaire Minimum Income Tax Act, calling for a 20% levy on households worth more than $100 million, affecting roughly 0.01% of U.S. families, a congressional fact sheet outlined. The 20% tax applies to "total income," including…

A Spanish prosecutor is seeking an eight-year prison term for the Colombian superstar Shakira over a €14.5m (£3.8m) tax fraud case, a prosecutor’s office document has revealed.The singer, who has sold more than 80m records worldwide with hits such as Hips Don’t Lie, earlier this week rejected a settlement offer from the prosecutor’s office to close the case.She is accused of failing to pay taxes between 2012 and 2014, a period in which Shakira says she did not live in Spain.The prosecutor’s document, seen by Reuters,…

Scott Olson | Getty ImagesIf you manage to beat the odds and land the next Mega Millions jackpot, don't forget that Uncle Sam will snatch a slice of the windfall.The top prize has surged to $790 million for Tuesday night's drawing after no ticket matched all six numbers pulled Friday night. If won at that amount, it would mark the fourth-largest lottery prize ever awarded.And, it would come with a sizable tax bill. Whether the prize is taken as an annuity of 30 payments over 29 years or as an immediate, reduced cash lump…

If your family has significant wealth, it's now easier to avoid federal estate taxes, thanks to recent changes from the IRS.The IRS improved a strategy known as "portability," used by high-net-worth married couples expecting to owe federal estate taxes when the second spouse dies.Here's how it works: While a spouse may inherit all of their partner's assets tax-free, estate taxes may be owed after the surviving spouse passes, depending on the total value.More from Personal Finance:Before you 'chase dividends,' here's what…

Companies are racking up hundreds of millions of dollars in income taxes on pay for top executives, a growing bill that in some cases makes up a sizable chunk of their annual tax expense. Tesla Inc. booked $447 million in taxes on executive pay over three years. Pay for officers generated nearly 20% of all tax costs booked by defense contractor Howmet Aerospace Inc. in the same period. At cosmetics retailer Ulta Beauty Inc.,…

seksan Mongkhonkhamsao | Moment | Getty Images1. Review tax withholdingsWhen starting a new job, you fill out Form W-4, covering how much your employer withholds from your paychecks for federal taxes. But you need to revisit those withholdings, especially for major life changes such as marriage, having children or starting a side business.Top reasons to adjust your withholding:1. Tax law changes2. Lifestyle changes like marriage, divorce or children3. New jobs, side gigs or unemployment4. Tax deductions and credits…

Credit: CC0 Public Domain Sugar-sweetened beverages are a known contributor to several health issues, including poor diet quality, weight gain and diabetes. While several studies have shown that taxing sweetened beverages significantly reduces purchasing, questions have been raised about whether the taxes place a greater economic burden on lower-income households.…