Free Republic

The IRS on Thursday announced higher inflation adjustments for the 2024 tax year, potentially giving Americans a chance to increase their take-home pay next year. The higher limits for the federal income tax bracket and standard deductions are intended to avoid a phenomenon known as "bracket creep," which happens when taxpayers are pushed into higher-income brackets even though their purchasing power is essentially unchanged due to high inflation. The IRS makes such adjustments annually, but in times of inflation, the increases are more significant and impactful for taxpayers. This year, the tax brackets are shifting higher by about 5.4%. The...

Ever since the Tax Cuts and Jobs Act passed in late 2017, Democrats and a few Republicans have decried how the law’s $10,000 cap of the state and local tax deduction harms schools, local communities, home values, first responders, and middle-class families. Fast forward almost two years later and these false claims are not going away. House Democrats recently announced a hearing scheduled for Tuesday where many of the common myths are likely to be repeated. Here are a few of the most common misconceptions. Myth #1: The Cap Hurts Middle-Class Taxpayers Before the 2017 tax cut capped the state...

Key Points Normally you can’t take a tax break for your pet but, under select circumstances, you might be able to. The IRS once allowed an exotic dancer to deduct the cost of breast implants. Is your pet a social media influencer? You just might be considered a small business. ============================================================== You probably know by now that charitable deductions are tax-deductible. But how about the cost of caring for your pet? Or your kid’s clarinet lessons? In select cases, the IRS has permitted taxpayers to deduct off-beat expenses on their tax returns. Here’s the key: Those costs must meet certain...

A high school student in Louisiana was investigated and his home was searched after he allegedly made comments interpreted as possible terrorist threats that compared the square root math symbol to a gun. According to local news station KATC, an investigation Tuesday by the Allen Parish Sheriff’s Office revealed the incident began when a Oberlin High School student drew the square root symbol while completing a math problem in class. Another student then made a comment on the similarity of the mathematical sign to a gun, sparking opinions and comments from multiple students. Authorities then say the student being investigated...

Taxpayers are scrambling to get their taxes done, and sadly watching too much of their hard-earned cash being sucked by the behemoth that is the federal government. While trying to make ends meet for their families and searching around for every last deduction, many taxpayers may be shocked to find two things: That Planned Parenthood, the nation's largest abortion vendor, is still getting more than $500 million of government funds every year, even though they have been referred for criminal activity by committees in both the U.S. House and Senate; and, that abortion is tax-deductible. Taking the abortion tax deduction...

That trek to South Dakota on your Harley isn’t going to get you a tax deduction. Sorry. Maybe that seems obvious, but someone actually tried to write that off on their taxes, according to the Minnesota Society of Certified Public Accountants. In their defense, the person wore a company shirt and tried to call it an advertising expense. There’s plenty more where that came from. The Society of CPAs did a study on the ridiculous things people have tried to use as deductions – and it’s pretty funny. Business deduction fails: Someone tried to write off their pop-up camper, calling...

Bush wants to cancel the deduction for state and local taxes. As the presidential candidates roll out tax reforms, one test of seriousness is which tax deductions they’ll cut. One of the better ideas is Jeb Bush’s proposal to end the deduction for state taxes. While liberals decry tax cuts for the rich, they adore this particular subsidy for the rich, and especially for rich states and the political class in Sacramento, Albany and Trenton. Since the creation of the federal income tax in 1913, taxpayers who itemize have been allowed to deduct the income and property taxes paid to...

The first rule of extortion is, you don't call it extortion. When thugs come around to collect, they don't act like they're taking your money, they act like they're claiming theirs. They treat you as if you stole from them, and they've come to set things right. It's a psychological assault employed by all tyrants. What's yours is mine. You keep what I allow, and should thank me for the privilege.That same thuggish sentiment underlies our government budget debates. The Left has skillfully established the premise that the state owns all wealth, and lets us have some of it. Acceptance...

In effect since 1913 and long considered an untouchable provision of the tax code, the mortgage interest deduction as we know it may not be around to celebrate its 100th birthday. The National Commission on Fiscal Responsibility and Reform is recommending that the mortgage interest deduction no longer be an itemized deduction; instead, it would be transformed into a non-refundable tax credit equivalent to 12 percent of interest paid on mortgages up to $500,000. What this would mean for taxpaying homeowners is up for debate. According to the National Association of Realtors, progress has been made recently in bringing stability...

Get Rid of Tax Breaks for Homeowners? No Way!By Gerri Willis Published August 18, 2010 | FOXBusiness The administration's housing summit Tuesday looked at much more than just what to do with the floundering Fannie Mae and Freddie Mac. What they discussed could impact every aspect of a homeowner's life - from down-payment requirements to the all-important mortgage tax deductions. In fact - some experts now are saying deductions should be a thing of the past According to the USA Today, the government spent about $80 billion last year to back up the mortgage interest deductions. But one housing specialist...

ST. PAUL, Minn.—As Minnesota governor, Independence Party candidate Tom Horner says he would "take a hard look" at tax exemptions and deductions, including mortgage interest for homeowners. Horner said Thursday he favors capping the deduction homeowners can claim, although he didn't set an amount. "I don't think we ought to eliminate the mortgage deduction. I don't think that we ought to exclude second homes," Horner said. "But I do think it is reasonable to say that at a certain level Minnesotans shouldn't be subsidizing total investment in mortgages." There are some limits in place now: State law lets Minnesota taxpayers...

Want a tax hike that will really hit home … literally? The Hill reported yesterday afternoon that momentum has picked up for capping the mortgage-interest deduction that has incentivized real-estate purchases. It comes as the National Commission on Fiscal Responsibility and Reform looks at means-testing a number of programs, including Social Security and Medicare: The popular tax break for mortgage interest, once considered untouchable, is falling under the scrutiny of policymakers and economic experts seeking ways to close huge deficits.Although Congress last year rejected the White House’s proposed cut to the amount wealthier taxpayers can deduct for home mortgage interest...

Nancy Pelosi’s and Barack Obama’s words are ringing true: We will learn what is in the bill once it is passed. New long term care deduction on everyone's paycheck-$150-250 a month, unless you opt out. This would be in addition to your health insurance premiums, and taxes you already pay. See the video for details.

The battered house on Sherwin Road was put to good use before the fire department burned it to the ground. SWAT teams barged through the front door in an exercise on dealing with domestic violence. Rescue crews scattered mannequins around the house and blew smoke through the halls to simulate a meth lab explosion. Firefighters set fires in one room after another and practiced putting them out. Then, in one last drill, they torched the whole place. Five years later, though, a dispute still smolders over the homeowner's attempt to claim a $287,000 charitable tax deduction for donating the house...

...arlier this month the nonpartisan Congressional Budget Office delivered its latest revenue-raising options for Senate and House consideration as they write this fall's tax and budget legislation. Tucked away in the report are several incendiary plans that could — if adopted — cost homeowners billions of dollars. Though not formal legislative proposals, the CBO's options represent a handy fiscal menu for legislators to pick and choose from to reduce the deficit — now at unprecedented levels — or to pay for new programs they might want to advance. Tops on the CBO's hit list for housing: Slash deductions for homeowner...

The state budget that Gov. Jon Corzine unveiled yesterday calls for the elimination of property tax deductions on state income taxes next year, raising about $420 million to help offset spending. For middle-class New Jerseyans, however, the missing deduction could pack an extra punch: They also would lose their property tax rebates under the governor's proposal for the fiscal year beginning July 1. The $29.8 billion proposal represents "tough choices to do the right thing," Corzine told a joint session of the Legislature. As he promised to protect children, the elderly and the working poor, the governor asked others to...

February 26, 2009 - President Obama released his budget proposal this morning. A small section of the sweeping budget plan has the potential to become a major impediment to a recovery in real estate markets across the nation. NAR is 100% opposed to the provision that modifies the Mortgage Interest Deduction and is prepared to use its formidable array of resources against its enactment. As currently drafted, the plan changes the Mortgage Interest Deduction by reducing the amount of mortgage deductibility on families earning over $250,000. This proposed change in the Mortgage Interest Deduction will result in further erosion of...

One advantage of having a subscription to The Atlantic is finding out what the Democrats propose to do next. Clive Crook in under the rubric of "The Agenda" wrote a recent article on homeownership called Housebound. After agreeing with some benefits of homeownership he then lists the reasons why this is a bad idea. Among his complaints are: Homeowners are less mobile. Homeowners act as cartels interfere with zoning changes, suppress new developments, etc. And, not the least is that they have an unfair advantage in mortage-interest deductions. The last of these, interest deduction for mortgage interest, seems to be...

SAN FRANCISCO (MarketWatch) -- These days, many of us leave the myriad, line-by-line tax decisions to our professional preparer or the mystery men behind our tax software. But given the increasing complexity and ever-changing nature of the U.S. tax code, it makes sense to keep abreast of some of the most valuable perks yourself. After all, it doesn't hurt to make sure your software program is steering you in the right direction or to check in with your preparer to see whether you qualify for a tax break. "I'm blown away by all the changes," said Michelle Maton, an enrolled...

Before I look for a CPA to give me the law, I just thought I'd ask here for a quick, general response: Can you apply a deduction to this year's return that you did not take on last year's return? My specific case is this: Just found out that you can choose to deduct EITHER the total sales tax you paid OR the amount of state income tax you paid. I built a house in 2005 and paid an enormous amount in sales tax (I built in the state of washington where everything is slapped with a sales tax, but...