Tax changes

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November 17th, 2022 at 2:32:49 AM permalink
odiousgambit
Member since: Oct 28, 2012
Threads: 154
Posts: 5283
When you do your taxes for 2022 tax year, you will find that though you suffered from having your income devalued during the year, you will not have this reflected in your tax bill, which goes under the same rules as 2021 tax year. That's another way inflation robs you even though, these days, eventually anti-bracket creep rules will finally kick in.

2023 Standard deduction changes

"For married couples filing jointly, the standard deduction will rise to $27,700, up from $25,900 in the current tax year. That's an increase of $1,800, or a 7% bump.
For single taxpayers and married individuals filing separately, the standard deduction will rise to $13,850 in 2023 from $12,950 currently. That's an increase of about 6.9%.
Heads of households will see their standard deduction in 2023 jump to $20,800 from $19,400 this year. That's an increase of 7.2%. "

2023 Tax brackets changing too

"The IRS is boosting tax brackets by about 7% for each type of tax filer, such as those filing separately or as married couples."

https://www.cbsnews.com/news/tax-bracket-irs-inflation-adjustment-tax-brackets-for-2023/
I'm Still Standing, Yeah, Yeah, Yeah [it's an old guy chant for me]
November 17th, 2022 at 6:36:11 AM permalink
DRich
Member since: Oct 24, 2012
Threads: 52
Posts: 5067
Quote: odiousgambit
When you do your taxes for 2022 tax year, you will find that though you suffered from having your income devalued during the year, you will not have this reflected in your tax bill, which goes under the same rules as 2021 tax year. That's another way inflation robs you even though, these days, eventually anti-bracket creep rules will finally kick in.

2023 Standard deduction changes

"For married couples filing jointly, the standard deduction will rise to $27,700, up from $25,900 in the current tax year. That's an increase of $1,800, or a 7% bump.
For single taxpayers and married individuals filing separately, the standard deduction will rise to $13,850 in 2023 from $12,950 currently. That's an increase of about 6.9%.
Heads of households will see their standard deduction in 2023 jump to $20,800 from $19,400 this year. That's an increase of 7.2%. "

2023 Tax brackets changing too

"The IRS is boosting tax brackets by about 7% for each type of tax filer, such as those filing separately or as married couples."

https://www.cbsnews.com/news/tax-bracket-irs-inflation-adjustment-tax-brackets-for-2023/


The good news is that the money I am using to pay my tax bill is now worth about 7% less than last year. Most likely they will raise the tax rates again to compensate next year.
At my age a Life In Prison sentence is not much of a detrrent.
November 28th, 2023 at 10:55:39 AM permalink
rxwine
Member since: Oct 24, 2012
Threads: 190
Posts: 19117
First thread I saw about taxes so putting this here.

Iíve decided to become a conservative. Ha ha, not really.

But I have decided I might be for zero taxes on investing with certain conditions.
Ď
1. Taxes still have to be made up somewhere else.

And/or

2. If there has to be a tax on investing it will be so simplified, you wouldnít need to hire a tax consultant. Nor file anything on a tax return about it, if possible. So, basically, interest, dividends, capital gains, and tax advantage accounts would either get a simple flat rate or nothing.

Reason. One reason really. IT WOULD OPEN UP INVESTING TO MANY MORE PEOPLE. Much like a straight up bet, you calculate whether you won or lost, and little more is required.

AS you see, Iím not really worried about the well-off or astute investor. They already do fine. Itís all the rest.
You believe in an invisible god, and dismiss people who say they are trans? Really?
November 28th, 2023 at 3:31:03 PM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 135
Posts: 18404
Quote: rxwine
First thread I saw about taxes so putting this here.

Iíve decided to become a conservative. Ha ha, not really.

But I have decided I might be for zero taxes on investing with certain conditions.
Ď
1. Taxes still have to be made up somewhere else.

And/or

2. If there has to be a tax on investing it will be so simplified, you wouldnít need to hire a tax consultant. Nor file anything on a tax return about it, if possible. So, basically, interest, dividends, capital gains, and tax advantage accounts would either get a simple flat rate or nothing.

Reason. One reason really. IT WOULD OPEN UP INVESTING TO MANY MORE PEOPLE. Much like a straight up bet, you calculate whether you won or lost, and little more is required.

AS you see, Iím not really worried about the well-off or astute investor. They already do fine. Itís all the rest.


Dividends should always be 100% tax free. The tax on that income was already paid.
The President is a fink.
November 28th, 2023 at 4:26:26 PM permalink
Gandler
Member since: Aug 15, 2019
Threads: 27
Posts: 4317
Quote: AZDuffman
Dividends should always be 100% tax free. The tax on that income was already paid.


That makes no sense, that is like saying income from rental properties should be tax free because they were purchased with money that was already taxed.....

If you want tax free dividends, only buy dividend stocks in your retirement accounts....
November 28th, 2023 at 5:04:04 PM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 135
Posts: 18404
Quote: Gandler
That makes no sense, that is like saying income from rental properties should be tax free because they were purchased with money that was already taxed.....


No, it makes perfect sense. The tax was paid at the corporate level. Taxing the dividend is taxing it twice.

Your example makes no sense. The income from a rental property is income. It is profit after expenses.

Do you understand what a corporation actually is?
The President is a fink.
November 28th, 2023 at 6:08:51 PM permalink
ams288
Member since: Apr 21, 2016
Threads: 29
Posts: 12748
Quote: AZDuffman
Do you understand what a corporation actually is?


People!

/s
ďA straight man will not go for kids.Ē - AZDuffman
November 28th, 2023 at 7:35:57 PM permalink
Gandler
Member since: Aug 15, 2019
Threads: 27
Posts: 4317
Quote: AZDuffman
No, it makes perfect sense. The tax was paid at the corporate level. Taxing the dividend is taxing it twice.

Your example makes no sense. The income from a rental property is income. It is profit after expenses.

Do you understand what a corporation actually is?


It does not matter what organization pays the dividend, it is being paid as regular income to an individual. (Almost) every income source is taxed at some source before it gets paid out to an individual (where it is taxed as income.) When you receive a (monthly or whatever the structure) dividend personally it is personal income.
November 29th, 2023 at 3:59:29 AM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 135
Posts: 18404
Quote: Gandler
It does not matter what organization pays the dividend, it is being paid as regular income to an individual. (Almost) every income source is taxed at some source before it gets paid out to an individual (where it is taxed as income.) When you receive a (monthly or whatever the structure) dividend personally it is personal income.


It is NOT personal income. It is corporate income from a corporation you own. The tax on the income was paid at the corporate level. You are just then getting some for personal use.

To tax dividends is no different than taxing your direct deposit paycheck then taxing it again when you take money out at the ATM.

YOU ARE THE ORGANIZATION!
The President is a fink.
November 29th, 2023 at 9:28:59 AM permalink
Mission146
Administrator
Member since: Oct 24, 2012
Threads: 23
Posts: 4147
Quote: AZDuffman
Dividends should always be 100% tax free. The tax on that income was already paid.


"The tax on that income was already..."

Income/x = Investment Into Dividend-yielding stock

Dividend Yielding Stock Yields Dividends = Income

Income from Dividends = Tax Already Paid

How?
"War is the remedy that our enemies have chosen..let us give them all they want." William T. Sherman
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