Taxes

If you engaged in crypto trading in 2022, it’s possible you could receive Form 1099-K this year. But what is this form telling you, and what should you do with it? Let’s break it down together. To make virtual currency trading more user-friendly, crypto exchanges (like Coinbase, Gemini, Kraken, etc.) have enabled their users to

Start a side gig in 2022? Whether you lost your traditional job or you simply wanted to earn some extra cash, side gigs tend to complicate your tax filing a bit. Over the years, the IRS refined its rules for gig workers. But obviously, the IRS still wants you to pay taxes on any income,

Newly published data from the Congressional Budget Office (CBO) indicates in 2019, before the onset of the pandemic, American incomes continued to rise as part of a broad economic expansion. It also shows that, contrary to common perceptions, the federal tax system is progressive. The data on household incomes and tax burdens also comes two years

Americans were on the move in 2022 and chose low-tax states over high-tax ones. That’s the finding of recent U.S. Census Bureau population data and commercial datasets released this week by U-Haul and United Van Lines. The U.S. population grew 0.4 percent between July 2021 and July 2022, an increase from the previous year’s historically low rate of 0.1 percent. While

Updated for tax year 2022. Campaign contributions total hundreds of millions of dollars, and they continue to rise. With this level of fundraising, one question is sure to come to mind: Are political contributions tax deductible? The short answer? No. Most political contributions, whether local, regional, or national, are not tax-deductible and haven’t been for years.

Updated for tax year 2022. No matter what self-employment looks like for you, you’re responsible for ensuring the taxes on your net earnings are paid to the Internal Revenue Service (IRS). And the self-employment tax (SE tax) is part of that. Officially known as the Self-Employment Contributions Act tax, the SE tax is the self-employed community’s version of

Are you filing your taxes for the first time this year? Filing an income tax return may sound daunting, but the good news is that most teen tax returns are simple to do — you just need to familiarize yourself with some tax basics. Is a teenager required to file taxes? As a taxpayer, you

We get it; filing your taxes is a chore you’d rather not do. That’s why TaxAct® makes the tax prep process as seamless and easy as possible — and did we mention you can also file your basic federal return with us for free1? Is TaxAct’s offering actually free? With TaxAct, you have different filing

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The IRS announced on Dec. 23, 2022, that it would delay the $600 reporting threshold for Form 1099-K that was set to go into effect during the 2022 tax year. Instead, these requirements have been pushed back one year to allow taxpayers more time to prepare for the change. Form 1099-K  is an informational tax

The tax treatment of charitable giving over the past few years has been influenced by two major tax events: the 2017 Tax Cuts and Jobs Act (TCJA) and the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act. These changes provide a case study of how changes in tax policy can influence taxpayer behavior in

Key Findings Cost recovery refers to how businesses deduct their investments over time. The Tax Cuts and Jobs Act of 2017 reintroduced 100 percent bonus depreciation for short-lived investments, such as machinery and equipment, allowing full cost recovery for qualifying investments. Bonus depreciation will begin phasing down at the beginning of 2023. In 2018, the

Since 2018, the tax world has seen multiple rounds of proposals to change how digital companies are taxed. The most common, the Digital Services Tax (DST), popped up as a European Commission directive and then made its way into the national laws of multiple countries across the globe. Ongoing international tax negotiations were partially motivated

It’s Christmas time, and for millions of families around the country, that means revisiting some classic holiday movies. For some, that includes It’s a Wonderful Life and Home Alone. For others, that includes Die Hard. In this analyst’s view, Die Hard is a Christmas movie, though this is not an institutional position of Tax Foundation.

Most state tax changes take effect at the beginning of the calendar year (January 1) or at the beginning of the fiscal year (July 1 for most states). On January 1, 2023, thirty-eight states have noteworthy tax changes taking effect. Most of these changes represent net tax reductions, the result of an unprecedented wave of

This week, Congress forged an agreement to fund the federal government through an omnibus spending package that runs through September 2023. This package will include legislation that improves the tax treatment of saving, building on previous proposals introduced in the Senate and the House that change incentives to save and simplify the tax treatment of

Last week, the European Union approved the world’s first Carbon Border Adjustment Mechanism (CBAM). Well, in name anyway. The mechanism is a key aspect of the EU’s broader Fit for 55 package which aims to cut 55 percent of net greenhouse gas (GHG) emissions in the EU by 2030. It’s also a foundational aspect of

Key Findings A typical American household with four phones on a “family share” plan, paying $100 per month for taxable wireless service, would pay nearly $305 per year in taxes, fees, and government surcharges—up slightly from $300 in 2021. Nationally, taxes, fees, and government surcharges make up a record-high 25.4 percent tax on taxable voice

Research and development (R&D) is a crucial part of technological change, as R&D takes initial scientific discoveries and translates them into useful products that improve lives. Both the public and private sectors play important roles in R&D, but in recent years, private sector investment has become increasingly important. In 2019, businesses performed 75 percent of

Underlying every fiscal policy discussion in Washington is the question of progressivity: how much should tax and spending policy redistribute from high-income households to low-income households? This debate is often more rhetorical than substantive, but a recent study by the Congressional Budget Office (CBO) fills this void by presenting data showing that the current fiscal