Posted on 10/06/2023 3:24:01 PM PDT by Libloather
Americans should consider their tax strategies now ahead of potential changes at the end of 2025, experts warn.
Trump-era legislation brought in by the Tax Cuts and Jobs Act in 2017 made sweeping changes to the tax landscape.
This included lowering individual income tax rates, almost doubling the standard deduction and raising the federal estate tax exemption.
Unless these rules are extended, they will expire on January 1, 2026, sparking major changes for millions of taxpayers across the US.
Now is the time to plan ahead, experts warn, in order to be prepared for changes down the line - and to avoid being stung with a surprise bill.
Income tax brackets will revert to the higher pre-2017 levels when the current law expires at the end of 2025 - affecting most taxpayers.
'We're in a relatively favorable tax environment today for both high and low income earners, compared to historic income tax rates,' investment advisor Patrick Donnelly told DailyMail.com earlier this year.
'It means that we all need to be thinking very strategically about our tax strategy between now and 2026.
'I try to make sure clients aren't going to be kicking themselves in 2026 because they didn't take advantage of these incredibly favorable tax rates when they had the chance.'
A single-filer with $100,000 of taxable income in 2023 has an effective/average federal tax rate of 14.3 percent, he said.
They will pay $14,260 in federal income taxes this year - assuming the standard deduction.
In 2026 that same inflation-adjusted $100,000 in taxable income will create an effective tax rate of 15.7 percent - triggering a $16,916 tax bill.
'That is a 19 percent jump for single-filers earning $100,000,' Donnelly said.
A married couple filing jointly with $200,000 of taxable income in 2023 also has an effective/average federal tax...
(Excerpt) Read more at dailymail.co.uk ...
My financial plan includes winning the lottery. Looking good so far.
That’s also when the SALT tax cap expires, so get ready for high tax areas hogging all the tax money again.
I want to pay $1,000,000 in federal income tax in 2026.
Because it means my income will be 2.5 to 3.0 million.
My point is I do not begrudge paying big taxes if I am making big bucks.
So ridiculous to sunset working class taxes but let billionaires have their tax cuts permanent. What a stupid move.
“Trump-era legislation brought in by the Tax Cuts and Jobs Act in 2017 made sweeping changes to the tax landscape...This included lowering individual income tax rates, almost doubling the standard deduction and raising the federal estate tax exemption.”
Only took the Media SIX YEARS to admit that Trump cut taxes, but that is actually an improvement.
You just explained why the Republicans got their asses kicked in the 2018 midterms.
More theft by government.
I think the point is people are well off by not doing stupid things and being wise with their investments.
When tax rates change with wild swings, the rich simply close down their businesses or hire fewer people.
I have a company in mind coming on line around that time.
Am I going to hire lots of people....not a chance.
Yes you are right. These higher taxes will directly hurt the successful while also indirectly hurting people of all economic classes.
Thank you for this, totally nails it.
Problem with that is that taxes get raised on everyone else to make up the deficit, and the lefties have piles of money to use for all sorts of ideas that they will then try to inflict on the rest of us.
You mean letting the states hoard the money so that taxes get raised on everyone else, surely.
Every tax cut without cutting government is a future tax increase. Republicans love doing that, because they are can kickers and don't care about the future. The wealthy can always flee and give up citizenship, its the commons that are left with these debts.
Dude.
You seem to be forgetting about all the common people getting screwed over in all those other states. Why should they have to subsidize the blue states? That was the way things were decade in and decade out until Trump capped the SALT tax deduction.
The itsy bitsy paycheck deposited to my account.
Down came the bills taxes and wiped the money out.
Maybe so, but if the end result is turning red states purple or blue, what have we ultimately gained?
Well, it increases competition for a multitude of things, real estate for example. It also disrupts established funding pathways for all the crazy leftist b.s. schemes.
Sure, you have lefties moving to red and purple states, and sure they expect all the services provided by the unsustainable spending provided by ripping off the rest of the country for so long. It would be nice if our news contained actual numbers and data from economists and accountants, so that people understood these things that they ought to understand.
That is one good thing about Haley, she understands how money works. She isn’t some pretty boy attorney with a poly Sci degree, like so many of them.
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