Posted on 01/22/2024 4:31:11 PM PST by Libloather
America's tax debts are spiraling after the IRS put a halt to chasing payments during the pandemic.
Some 18.6 million taxpayers owed the IRS $316 billion in overdue taxes at the end of 2022, up from 16.8 million owing $308 billion in September 2019. And the figures are only set to grow this year.
Experts are warning that workers who have been used to getting refunds in the last few years can swing into money owed for 2024.
The trend has been fueled by the end of pandemic tax relief and also a booming stock market which puts more investors at risk of hefty Capital Gains Tax bills. The S&P 500 is currently up 22.1 percent while Bitcoin grew 155 percent in 2023.
Florida financial advisor Paxton Driscoll told DailyMail.com: 'People should definitely be aware their tax return is not going to be as great this year as they don't have the advantage of the Covid relief programs.
'But also their investments could land them with a bigger bill. A lot of millennials use investment apps like Robinhood and own tech stocks such as Google and Amazon which had a really great year.
'It means a lot of people could be liable for Capital Gains Tax they had no idea about.'
Capital Gains Tax is the levy investors pay on the profit they make from an investment after selling it. But for the 2023 tax year, it only applies to those whose profits exceed $44,625.
Many taxpayers benefited from temporary relief measures brought in during the pandemic. For example, the child tax credit was raised to $3,600 per child in 2021 before dropping back down to $2,000 last year.
As most initiatives have since expired, those that are used to getting refunds may in fact find they have balances due.
(Excerpt) Read more at dailymail.co.uk ...
You should keep a spreadsheet updated during the year, and know what your tax position is.
87,000 IRS brownshirts…compliments of the RINOS funding FJB 1 trillion money bill the last time around! I despise our anti American base RINOS!!! Eff them!!! SPINELESS CORRUPT POS all of them!!!!
I second that motion.
Utter foolishness to not be aware of your tax burden over the year, no sympathy.
I am careful to never get involved in any of these tax delay or benefit schemes. I have no worries about my taxes.
Yeah I stay honest with the IRS. Not just the penalties but the hassle they will put you through.
I prefer to break even or owe a slight amount.
Why give the government a free loan?
I also don't use all of my deductions, keep around $1000 aside to cover any mistakes found in an audit.
I hate taxes too. But if you owe them, pay them.
I do my best to avoid giving the government an interest free loan.
I always owe money, as I’m retired and I only pay on or about 15APR as they pick the date.
The extra charge for underpaying during the year is so little, they don’t usually bother to bill me.
I have a budget and I make monthly contributions towards the projected tax bill, to my savings account, not theirs.
I actually keep the money in T-bills so I get a fair amount of my tax money back.
If I get a refund this year, I will certainly be shocked.
Refund = Giving the government an interest-free loan.
flooding the country with 10m+ illegals that i’m supposed to pay for to be used to supplant my vote and replace me and my family in this country.
kinda feeling like i’m not being represented here.
why are we paying taxes again?
That’s my goal every year. As close to zero as possible. I hate giving the government free loans out of my paycheck.
Problem is that you need to keep updated on tax laws and regulations as well.
The bad part about that is while you may read the new laws how it is enforced may change.
Mrs Con and I strive to get close the the penalty limit.. I earn interest on the money all year long. Between that and inflation, JoBama is getting less value from me.
It’s still way too much to be considered my fair share when most pay nothing or get extra back.
EC
Hire an accountant. He knows how to be worried about the IRS and tax law so you don’t have to.
Agreed.
One reason we use a tax accountant is in case there are issues after the fact—it is nice to know you have a friend.
:-)
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