Budget 2023: Centre Likely To Introduce New Income Tax Slab

The Centre is anticipated to introduce a new system of personal income taxation without exclusions in the forthcoming budget. According to a report by a leading media house, adding more slabs to make the income range in each slab narrower is one of the numerous suggestions being looked at. It has been the subject of numerous rounds of debates at the Center. The publication was informed by a source with knowledge of the situation that “extensive conversations have been held” and “you must wait for the Budget for the updated…

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After ‘misery’ for tax filers in 2022, IRS to start 2023 tax season stronger, taxpayer advocate says

Mykhailo Polenok / Eyeem | Eyeem | Getty Images After another challenging year for the IRS in 2022, the agency may be primed for a better 2023 tax season — but improvements may take time. The National Taxpayer Advocate on Wednesday released its annual report to Congress covering last year’s biggest issues at the IRS, which includes recommendations to fix these problems.  “The bad news is that taxpayers and tax professionals experienced more misery in 2022,” wrote National Taxpayer Advocate Erin Collins. “The good news is that since the close…

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Disrupt and Innovate: The National Budget

The National budget for 2023 – 2024 will be presented in the Parliament next month. Since this will be the last full budget before National elections are held, what could sway the voters to BJP irrevocably? What could be the undeniable X factor for winning elections in 2024 and beyond? Can the entire middle class turn saffron with some innovatively disrupted ideas?  “A fine is a tax for doing something wrong. A tax is a fine for doing something right”, is an old adage. Can this budget completely abolish income…

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What the pro-business tax agenda is chasing in a changing Congress 

Sunrise hits the U.S. Capitol dome on September 30, 2021 in Washington, DC. Chip Somodevilla | Getty Images News | Getty Images Main Street could find itself stuck in gridlock next year in terms of advancing pro-business tax objectives. For House Republicans, legislative priorities are likely to include extending business-friendly provisions of The Tax Cuts and Jobs Act, passed by the Trump Administration in 2017. Even so, a divided Congress means that major pro-business legislative changes will be difficult to enact. This is true despite Raphael Warnock’s recent victory that…

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Business owners have an IRS payment coming due well before April federal income tax deadline

New business formation has boomed, and that means more new business owners than ever are dealing with tax season and potential tax nightmares.  While there aren’t that many tax changes that will affect small businesses in the upcoming tax season, what is new — coupled with evergreen tax issues that tend to trip up small businesses — could cause headaches if owners aren’t careful. For starters, there’s a big tax bill coming due for many business owners related to the pandemic, well ahead of the April 2023 federal income tax…

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5 key personal finance issues this midterm election season — and what they mean for your wallet

As Americans head to the polls, several key personal finance issues are weighing on voters’ minds and wallets. This week, the Federal Reserve enacted its fourth consecutive 0.75 percentage point interest rate increase to fight inflation, triggering further stock market losses. Meanwhile, recession fears are growing, with 84% of Americans worrying how a prolonged economic downturn may affect their finances, according to a MassMutual report released Thursday.   More from Personal Finance:What the Fed’s 0.75 percentage point interest rate hike means for youDemocrats warn that Social Security, Medicare are at stakeWhat…

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How Congress and corporations can help stop inflation

Americans look to the country’s most powerful bank, the Federal Reserve, to combat inflation. “I think our biggest problem, at least for the foreseeable future, is high inflation,” Mark Zandi, chief economist at Moody’s Analytics, told CNBC. The Fed can raise interest rates to slow inflation, which ultimately makes the cost of borrowing higher for everyday Americans, and that can be just as painful as inflation. “The big question mark is how quickly will inflation come under control?” Julia Pollak, chief economist at ZipRecruiter, told CNBC. The central bank already…

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IRS ‘fully committed’ to better customer service as agency hires 4,000 new workers

Charles Rettig, IRS Commissioner, testifies during the Senate Finance Committee hearing in Washington, D.C., June 8, 2021. Tom Williams | Pool | Reuters The IRS said it has passed a milestone of hiring 4,000 new customer service workers as the agency prepares for the 2023 tax filing season. Hired over the past several months, these workers have been trained to assist taxpayers, including phone support, which has struggled with high call volumes during the pandemic. “The IRS is fully committed to providing the best service possible, and we are moving…

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Here’s how much you can earn and still pay 0% capital gains taxes in 2023

If you’re planning to sell investments or rebalance your taxable portfolio, you may be less likely to trigger a tax bill in 2023, experts say. This week, the IRS released dozens of inflation adjustments for 2023, including higher income tax brackets, increased standard deductions, bigger estate tax exclusions and more.  The agency also bumped up income thresholds for the 0%, 15% and 20% long-term capital gains brackets for 2023, levied on profitable assets held for more than one year. More from Personal Finance:IRS bumps up estate tax exclusion to $12.92…

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IRS bumps up estate-tax exclusion to $12.92 million for 2023. Here’s what that means for wealthy Americans

Bernd Vogel | Getty Images Ultra-wealthy Americans can soon protect more assets from federal estate taxes, the IRS announced this week.  Starting in 2023, individuals can transfer up to $12.92 million to heirs, during life or at death, without triggering a federal estate-tax bill, up from $12.06 million in 2022.  Since married couples may share exclusions by electing portability, their combined limits are double, allowing transfers of up to nearly $26 million for 2023, compared to just over $24 million in 2022.  More from Personal Finance:IRS: Here are the new…

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