Upcoming Changes to Your Taxes

-

 How Will the New Administration Affect My Taxes?


    Many Americans are wondering how the Biden-Harris administration will be affecting their taxes in the coming years. According to multiple media outlets, the following alterations can be expected:

Income Tax
The most significant difference for income tax will be for individuals making over $400,000 annually; the tax rate will be increased from 37% to 39.6%, and these incomes may be subject to a 12.4% Social Security tax - to be split evenly between employees and employers. 

Corporate Tax
The Tax Cuts and Jobs Act reduced corporate tax from 35% to 21%, while Biden does not intend on raising it to its prior level, it is set to increase to 28%.

Capital Gains Tax
It is also expected that tax capital gains will be taxed at the same rate as households for those earning over $1 million. The current system allows for long-term capital gains to be taxed at a lower rate - 23.8%.

401(k)
There is a proposal to change the way retirement savings are treated in the tax code, as a method of giving lower-earners a tax break upfront. The specifics of this proposal have not been shared yet.


While these are the current plans and proposals, it is important to stay up to date and ensure that your                                                                       CPA does the same. 



Comments

Post a Comment

Popular posts from this blog

How to Manage Your 2021 Finances - From an Attorney

-
Image
  The Best Way to Manage Your 2021 Finances From a Bankruptcy Attorney After being a Bankruptcy Attorney for over 22 years, I have seen countless financial situations, each unique in their own way. Still, I have been able to advise my clients well using the following general "rules": Be honest with yourself Most people aren't aware of how they are doing financially until they sit down and evaluate them impartially. This often involves looking at your bank statements to see how much money you have coming in, and exactly where it goes. If you see large amounts of spending at fancy restaurants, shopping plazas, or the like - it's time to evaluate if this is sustainable for you and your goals in the long-run.  Work Smarter, Not Harder Most of the time, it's better to have 2 lines of credit at 25% or less of their limits, rather than 1 line at 50%. This is not advisement to open a lot of credit accounts, but rather a way to view your finances and/or debts from a differ...
Read more

The Reality of Covid-19 is Setting In

-
Image
The Full Effect of Covid-19 is Beginning to Hit For the past year, many Floridians have either shifted to work-from-home positions or have lost their jobs completely. While these jobs have not made a full comeback, evictions and repossessions have. This has created an unbalanced scale for many; and masses of households are starting to feel the full effect of what the pandemic has done to our local and national economies.  While some households have managed to survive on a mixture unemployment and credit card debt, many are finding that the debt is starting to add up. Based on my consumer law experience, it becomes more difficult to deal with creditors once people get so far behind; the higher the mountain grows, the harder it is to climb.  We, and many other firms, are predicting a wave of bankruptcies once the reality fully sets in. It is important to remember that filing for bankruptcy is not free. Our firm keeps the process as affordable as we can, however there is no way t...
Read more

Regain Your Driving Privileges: Navigating Florida Law After an Uninsured Vehicle Accident

-
                If you’ve been involved in a vehicle accident in Florida and don't have insurance, the consequences can be severe. If a judgment has been entered against you as a result of the accident, you may be facing the suspension of your driver's license. Under Florida Statutes § 324.121, the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) is required to suspend your driving privileges if you fail to satisfy the judgment. This suspension can severely impact your daily life, from commuting to work to fulfilling family responsibilities.                                           However, you have options to regain your driving privileges.   Option 1: Proposing a Payment Plan with the Judgment Creditor               One potential solution is to negotiate a pa...
Read more