2021 – 06/15 The Congressional Budget Office (CBO) has published a report describing various aspects of federal estate and gift taxes. The report describes the taxes in detail, looks at the people who pay them and examines the types of assets that comprise taxable estates. In 2021, estates face a 40% tax rate on their value above $11.7 million, although various deductions reduce the value subject to the tax. The same threshold and tax rate apply to gift taxes. According to the CBO, in 2020, revenues from federal estate and gift taxes totaled $17.6 billion (or 0.1% of gross domestic product). To read the report:
Similar Posts
Qualified Dependent Care
2021 – 02/24 Flexible Spending Accounts (FSAs) for dependent care are a tax-favored way to pay certain expenses, but rules apply. Employees may redeem these FSA funds only as reimbursements for qualified dependent care. The costs must be incurred within time limits, and unused funds must be forfeited. In light of COVID-19, some FSA rules…
Household Employer’s Tax Guide
2022 – 02/15 The IRS recently announced the release of its 2022 Household Employer’s Tax Guide, highlighting several changes. You need to withhold and pay Social Security and Medicare taxes if cash wages of $2,400 or more are paid in 2022 to any one household worker (up from $2,300 in 2021). You don’t count wages…
Changes to premium tax credit could increase penalty risk for some businesses
2021 – 04/14 The premium tax credit (PTC) is a refundable credit that helps individuals and families pay for insurance obtained from a Health Insurance Marketplace (commonly known as an “Exchange”). A provision of the Affordable Care Act (ACA) created the credit. The American Rescue Plan Act (ARPA), signed into law in March 2021, made…
The deductibility of corporate expenses covered by officers or shareholders
2021 – 07/26 Do you play a major role in a closely held corporation and sometimes spend money on corporate expenses personally? These costs may wind up being nondeductible both by an officer and the corporation unless proper steps are taken. This issue is more likely to arise in connection with a financially troubled corporation….
Employee vs Independent Contractor
2021 – 12/30 How do you determine if a worker is an employee or an independent contractor? The IRS Office of Federal, State, and Local Government recently held a webinar to answer that question. Worker classification is determined by the relationship between a worker and the business, and whether the business can control how tasks…
“Dirty Dozen” Tax Scams for 2021
2021 – 07/01 The IRS is revealing its “Dirty Dozen” Tax Scams for 2021. Here are some of them: Be on the lookout for scammers who set up fake charitable organizations to take advantage of the public’s generosity, especially after tragedies and disasters, such as the COVID-19 pandemic. Watch out for scammers targeting immigrants with…