- New Tax Rules for Retirees
- If you are at or approaching the age of 70, you need to be aware of some changes that Congress made to the tax laws, effective starting in 2020. These changes will have direct impacts on you and the decisions you make related to your retirement accounts. Not only will they affect your federal taxes, but depending upon your state’s income tax laws, they may impact your state tax status as well.
- Video Tip: Big Tax News if Your Child has Income
- As part of the 2017 tax reform, Congress modified the kiddie tax structure so that the children’s investment income in excess of the small allowance ($2,200 for 2019) is taxed at the fiduciary tax rates.
- Congress Green-Lights Some Alternative Vehicle Credits
- To encourage U.S. taxpayers to move away from gasoline-powered motor vehicles, over the years, Congress has provided various tax credits for purchasing electric or alternative fuel vehicles. These credits generally come with an expiration date or a sales limitation. For example, from 2006 through 2010, a credit was available to taxpayers who were purchasing a hybrid vehicle – this was when hybrids such as the Toyota Prius were beginning to take off in the U.S. auto market. Since then, the tax credit that has drawn the most attention is the 4-Wheeled Plug-In Electric Drive Vehicle Credit, created by Congress in 2009.
- Video Quick Tips: Good IRA News for Retirees
- Good IRA news for retirees.
- Congress Does Away with the Stretch IRA
- Some members of Congress have, for some time, expressed their displeasure with the so-called stretch IRAs that have permitted some beneficiaries, such as a young child or a grandchild, to extend the payout period from the IRAs they inherited for decades.
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