Latest news with #taxdeduction
Wall Street Journal
a day ago
- Business
- Wall Street Journal
Taxpayers Should Beware the Costly SALT Cap Phaseout Zone
Right now, people making more than $500,000 a year are sitting pretty. They are in the 32% federal tax bracket and probably loaded with mortgage interest. They pay an abundance of state and local taxes, and they might even make a few donations to charity. Excited to finally itemize $40,000 of their state and local taxes for a fat tax deduction, they fail to spot the trouble ahead. Trouble is coming, however, and it lies in the SALT Cap Phaseout Zone. The problem arises when the effective marginal tax rate on their next dollar of income increases from 32% to 41.6%, which they will discover next April. Here's how this happened. High-earning residents of New York, New Jersey, California and other high-tax locales are tempted to cheer now that Congress has raised the cap on state and local tax deductions. Ever since the Tax Cuts and Jobs Act capped these deductions at $10,000 during President Trump's first term, politicians from high-tax states have fought to undo it. They've now achieved a partial victory: The One Big Beautiful Bill Act raises the cap to $40,000—at least temporarily. But hold the champagne. This relief comes with a hidden tax hike.
Forbes
a day ago
- Business
- Forbes
Forbes Daily: Consumer Sentiment And Spending Defied Expectations In June
You might have to say goodbye to free snacks in the office thanks to the One Big Beautiful Bill Act. Food and drinks were some of the many perks companies have offered as they try to lure workers back to the office. But the just-signed legislative package would allow a tax deduction that employers previously used for providing meals and snacks to expire in most cases. Congress seems to think the savings are worth it: The Joint Committee on Taxation found that eliminating the deduction will raise $32.5 billion over the next decade. Even without the tax break, free food is a major draw. In a 2023 survey, 80% of workers said catered meals encourage them to come into the office. Transportation Secretary Sean P. Duffy speaks during a press conference at Los Angeles Union Station in February 2025. Allen J. Schaben / Los Angeles Times via Getty Images California is suing the Trump Administration over its claw back of $4 billion in federal funds awarded for a high-speed rail system in the works, the latest difficulty facing the country's costliest infrastructure project. Transportation Secretary Sean Duffy said a compliance review determined the California High-Speed Rail Authority 'cannot meet its obligations under the grant agreement,' but Governor Gavin Newsom claimed the decision was politically motivated. Microsoft released an emergency software patch Sunday in response to 'active attacks' on businesses, government agencies and universities using its SharePoint server. The vulnerability only impacts companies using Microsoft's software to host their own servers, and customers relying on Microsoft's 365 cloud services have not been affected. This is a published version of the Forbes Daily newsletter, you can sign-up to get Forbes Daily in your inbox here. Americans appear to be less worried about price hikes, as consumer sentiment reached a five-month high last month, according to the University of Michigan's monthly survey released Friday. Inflation was higher than economists expected in June, and those polled in the survey still see a 'substantial risk' of worsening inflation in the future. TECH + INNOVATION AI chatbot Grok has touted shifting viewpoints on disgraced financier Jeffrey Epstein in recent days, including apologizing for 'overly definitive or inflammatory posts' about Epstein's demise that preceded a system update. It's showing in real time how the flagship product of Musk's AI firm, which recently won a $200 million contract with the Pentagon and was last valued at $80 billion, is evolving and influencing discourse on X. MONEY + POLITICS Attorney General Pam Bondi during a Cabinet Meeting with President Trump at the White House in Washington, on July 8, 2025. Tom Brenner for The Washington Post via Getty Images At President Donald Trump's direction, Attorney General Pam Bondi vowed to ask the court to unseal grand jury documents related to Epstein—but it could take months for any documents to actually be released, if they're permitted to come out at all. Grand jury proceedings are typically secret, and files from them can only be released in limited circumstances. Over the weekend, Trump continued to blast 'troublemakers and radical left lunatics' who he predicted would still want 'more, more, more.' MORE: Senator Dick Durbin (D-Ill.) alleged in a series of letters that FBI agents were directed to 'flag' anything in the government's documents on Epstein that mentioned Trump. Democrats have urged the FBI and DOJ for more information about their refusal to publicly release more evidence, after Bondi previously said the public would see 'the full Epstein files.' Trump sued billionaire media magnate Rupert Murdoch and the Wall Street Journal's publisher Dow Jones & Co. on Friday, after it published a report alleging the president sent a suggestive letter to late sex offender Epstein on his 50th birthday. Trump filed the lawsuit in the Southern District of Florida alleging libel, assault and slander against Murdoch, Dow Jones and the two reporters behind the Journal's story. TRENDS + EXPLAINERS The recently-approved spending package changes controversial reporting requirements for gig workers and those who use payment apps like PayPal for business by changing the reporting thresholds for several tax forms. That should translate to fewer forms for taxpayers, as there are around 16.5 million self-employed individuals in the U.S., or 10.4% of the total workforce. But no matter the threshold, all taxable income must be reported on your tax return. DAILY COVER STORY The Best Places To Retire Abroad In 2025 Portugal, and its capital of Lisbon, encourages U.S. retirees who can show yearly income of $17,000 for a couple. MERTEN SNIJDERS/THE IMAGE BANK/GETTY IMAGES A growing number of Americans are interested in retiring abroad, in search of lower costs, a different lifestyle and less toxic politics. A record 712,000 Americans living abroad were receiving Social Security benefits at the end of 2024, up 21% in a dozen years. In many cases, the day-to-day living economics are compelling. And that's on top of a growing number of countries, including Greece, Portugal and Costa Rica, that have recently relaxed rules that used to keep retirees from bringing in extra income by working. New 'digital nomad' visas allow American expats to stay for an extended period, while working remotely for employers in other countries. To help you get started on research, Forbes offers its list of The Best Places to Retire Abroad in 2025, highlighting 96 places in 24 different countries in four continents, plus islands. Ten of the 24 are in Europe. In making our picks, we considered relative cost of living, healthcare quality and costs, ease of getting back to see relatives, crime and political instability and social isolation, especially if English isn't widely spoken. We also weighed the current ease or difficulty of getting permission to stay in a country. The list includes places like Malta, a five-island nation with terrific beaches, a temperate climate and low crime, and Belize, the only Central American country with English as its official language. WHY IT MATTERS 'Retiring abroad is certainly not for everybody,' says William P. Barrett, a Forbes senior contributor and veteran journalist who has been compiling these lists for more than a decade (and who has lived abroad). 'But when you look at what's going on in the U.S. today—everything from rising living and health care costs to a political environment that many of all ideological stripes find unsettling—a foreign option looks a lot more appealing than in the past. And then there's also the change of pace and opportunity to experience different cultures often in beautiful settings—in many cases, at a discount!' 'No doubt more folks dream about doing this than actually do it. One reason might be that it takes a lot of research. One purpose of the list is to give folks a road map and a head start.' MORE Your Guide To Planning A Foreign Retirement FACTS + COMMENTS June is typically a slow month for retail, but consumers spent more than expected last month as shoppers appear to be in a 'wait-and-see' mindset amid broader economic uncertainty. Retailers have been on pins and needles this year as tariffs are still expected to raise prices: 4.1%: The year-over-year increase in seasonally-adjusted retail sales from April through June, the Census Bureau reports $4.2 trillion: Total retail sales for the first half of 2025, up 3.6% 67%: The share of shoppers who started back-to-school shopping in early July STRATEGY + SUCCESS If you've repeatedly been told that 'something's coming' in response to questions about your career growth, your job might be stringing you along. Keep an eye out for managers who are constantly changing or being vague about the timeline for a promotion, and whether others are being promoted around you. Ask for a documented plan with clear dates, and if the company can't provide that, it may be time to move on. VIDEO A billionaire pop star starred in the new Smurfs movie, though the film still opened to lackluster box office returns this past weekend. Which musician is it? A. Taylor Swift B. Rihanna C. Katy Perry D. Beyoncé Check your answer. Thanks for reading! This edition of Forbes Daily was edited by Sarah Whitmire and Chris Dobstaff.
Yahoo
a day ago
- Business
- Yahoo
Trump's big bill offers $6K tax break for seniors — but not everyone gets a cut. Here's how much you may save
Donald Trump's big sweeping spending bill included a sweetener for many seniors across America. Starting this year, individuals over the age of 65 can claim $6,000 as a tax deduction in their next filing, according to the Internal Revenue Service. Those who file joint returns can claim this amount individually, which means a married couple could get deductions up to $12,000. Although this isn't the elimination of all income taxes on Social Security that he promised while campaigning, this new subsidy could still be a helpful financial boost for those who qualify. However, the real impact of this new deduction depends on your income bracket. Here's a closer look at how much you could save at different levels of income. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Low income Low-income seniors might not notice this new deduction because they already benefit from a standard deduction that reduces or eliminates the income taxes they owe. As of 2025, the standard deduction for someone over the age of 65 is up to $18,500 individually and up to $32,300 for joint filers. This category includes a significant number of American seniors. According to the KFF, one in three adults over the age of 65 had an income below $28,080 in 2022. Middle income Households with relatively modest incomes could see the most benefit from this new deduction. Because the deduction starts to phase out for single filers earning over $75,000 and married couples making over $150,000 — with full disqualification at incomes above $175,000 for individuals and $250,000 for couples — the Urban-Brookings Tax Policy Center projects that middle- and upper-middle-income households stand to gain the most. Read more: Americans are 'revenge saving' to survive — but millions only get a measly 1% on their savings. Seniors with incomes between approximately $80,000 and $130,000 are expected to benefit the most from this provision, which would cut their taxes by an average of $1,100, or around 1% of their after-tax income, according to their calculations. High income With a full phase out of the deduction at individual incomes above $175,000 and joint incomes above $250,000, high income tax payers won't benefit from this new incentive at all. Caveats Given all the rules and limitations, this new tax rule could best be described as helpful but limited. Based on the income limits, the Urban-Brookings Tax Policy Center estimates that less than half of all seniors could see a tax reduction because of this new deduction. The rule is also time-limited and applies only to federal income taxes between 2025 and 2028. Altogether, the new deduction offers a modest cut to a highly specific group of seniors for a relatively short period of time. However, it does have a long-term impact on other government programs that many seniors rely on: Social Security and Medicare. The Committee for a Responsible Federal Budget (CRFB) projects that the new set of tax policies implemented by the One Big Beautiful Bill Act (OBBBA) will hasten the insolvency of both the Social Security and Medicare trust funds, moving their depletion date up from 2033 to 2032 — a full year sooner than earlier forecasts. What to read next Robert Kiyosaki warns of 'massive unemployment' in the US due to the 'biggest change' in history — and says this 1 group of 'smart' Americans will get hit extra hard. Are you one of them? How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you'll need a substantial stash of savings in retirement Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
a day ago
- Business
- Yahoo
Craft is a great all-in-one productivity tool
This article is republished with permission from Wonder Tools, a newsletter that helps you discover the most useful sites and apps. Subscribe here. Number of housing markets with falling home prices jumps sharply to 109—up from 31 in January AI isn't coming for your job—it's coming for your whole org chart This new tax deduction in Trump's 'big, beautiful bill' lets people cash in on charitable donations up to $2,000. Here's what to know If I could use only one app, I'd pick Craft. Craft is my favorite multipurpose document/notes tool. It looks and feels nicer than Google Docs or Apple Notes. It's easier to use than Obsidian, Coda or Notion. And it's flexible enough for everything from shopping lists to client proposals. Read on for why it's so useful, new features, limitations, and more. Craft's eight best features Visual: Elegant sub-page cards help Craft docs look neater & nicer than Google or Word Docs, which tend to bog down with lots of text. Easy: Add text, images, links, tables, or sub-pages intuitively. Shareable: Collaborate on a doc and publish & share it with a link. You can create custom links and track metrics to measure visits. Export: Print, export as PDF or text, or transfer material to Day One, Bear, Drafts, Ulysses, Things, iA Writer, or other apps. Calendar: Easily sync your calendar to use Craft for daily notes. Affordable: The free version is great and the unlimited option is fairly priced. Flexible: Works quickly and reliably on mobile, desktop or Web. You can even email material into your notes. options: Pick from multiple AI models within Craft, or avoid it entirely. : Starting docs for travel, events, family, and more. Pricing Free for basic usage, with up to 1500 content blocks and 1gb of storage. Free upgrade for students and educators with your school email address. Free upgrade w/ a subsription to Setapp, $10/month for access to 200+ apps. : $8/month billed annually for a Plus account to create unlimited notes and documents. ($4/month with a special 50% current discount). : $15/month for sharing with 2 to 6 people. (50% current discount) Examples of Craft Docs : Excerpts from my resource for paid subscribers : Excerpts from my guide for paid subscribers : Draft from teacher Jeremy England :By the Craft team Examples of Craft Templates with sections for people, policies & resources has sections for mission statement, team roles, action plan, etc. with customizable pages with customizable visual sections for your next trip. New features I like For designing distinctive docs, Craft added 100 new premade styles It's easy now to keep track of lists for projects, books, movies, etc Create a freeform brainstorming page with Post-Its, images, etc Import Kindle highlights and other clips you've saved Privacy and Security Craft has strong policies on data security and privacy. TL;DR: 'Craft does not own your data, nor do we sell it to others or use it for advertising.' Limitations Android: doesn't have a full app yet, though a mobile Web app is on the way. Craft works on Mac, iOS, VisionOS, Windows, & Web. Tagging: It's not yet easy to organize pages with tags as easily as you can with other notes tools, though the team is working on it. No : In tools like Notion and Workflowy, you can create a synchronized block of text that stays up to date anywhere you use it. This article is republished with permission from Wonder Tools, a newsletter that helps you discover the most useful sites and apps. Subscribe here. This post originally appeared at to get the Fast Company newsletter:
Yahoo
3 days ago
- Business
- Yahoo
ATO 'looking closely' at common tax return claim six million Aussies make
Do you need to wear a suit to work? Or perhaps you need to wear a uniform emblazoned with your company's logo? Perhaps you work in a clothes shop and have to come to work wearing clothes bought in that store? Whatever the case, you have to conform to your employer's dress policy so there might be an expectation that you'll be treated the same way by the taxman when it comes to claiming tax deductions for your work clothing. If only it was so simple! RELATED ATO $4,400 tax deduction update sparks warning for millions of Aussie workers Top 10 superannuation funds revealed as Aussies receive 'double-digit' returns Compensation sought for millions of Qantas customers hit in major cyber data breach The ATO claims that more than six million people are claiming tax deductions for clothing and laundry, with an unspecified proportion of those claims believed to be bogus. So, with the ATO looking closely at all such claims, now is a good time to consider what you can and can't claim. What clothes can I claim a tax deduction on? You can claim a deduction for the cost of buying and cleaning: occupation-specific clothing protective and unique clothing (ie, not everyday wear) clothing that allows the public to easily recognise your occupation – such as the checked trousers a chef wears distinctive uniforms clothing and footwear that you wear to protect yourself from the risk of illness or injury posed by your job or the environment in which you do your job. To be considered protective, the items must provide a sufficient degree of protection against that risk, and might include: fire-resistant and sun-protection clothing (including sunglasses) hi-vis vests non-slip nurse's shoes rubber boots for concreters steel-capped boots, gloves, overalls, and heavy-duty shirts and trousers overalls, smocks and aprons you wear to avoid damage or soiling to your ordinary clothes whilst at work. What can't I claim tax deductions on? You can't claim the cost of purchasing or cleaning clothes you bought to wear for work that are not specific to your occupation, such as a bartender's black trousers and white shirt, or a business suit. Bad news for office workers! If you work in a clothing store, you also can't claim the cost of clothing you purchased in that store, even if you're required to wear it to work, since those items of clothing are not specific to your occupation (you could also wear them outside work, on a Saturday night out for instance). Ordinary clothes (such as jeans, shirts, shorts, trousers, socks, closed shoes) are not regarded as protective clothing if they lack protective qualities designed for the risks of your work. To take the example of closed shoes, you may seek to argue that such shoes provide a level of protection for your feet from work-place hazards but unless that protection is something specific, over-and-above a general level of foot protection, you're not going to be able to claim a deduction. Compulsory work uniform You can generally claim a deduction for the cost of a compulsory work uniform, provided that you bear the cost and aren't reimbursed by your employer. This is a set of clothing that identifies you as an employee of an organisation. It is compulsory for you to wear the uniform while you're at work and there is a strictly enforced policy ensuring that this happens. Typical occupations where a compulsory uniform is required include police officers, nurses, military personnel, airline staff and supermarket staff. You may be able to claim a deduction for shoes, socks and stockings where they are an essential part of a distinctive compulsory uniform and where their characteristics (colour, style and type) are specified in your employer's uniform policy (as is sometimes the case with air stewardesses and nurses, for instance). You may be able to claim for a single item of distinctive clothing, such as a jumper, if it's compulsory for you to wear it at work. Non-compulsory work uniform You can claim for a non-compulsory uniform provided it is unique and distinctive to the organisation you work for. Clothing is unique if it has been designed and made only for your employer. Clothing is distinctive if it has your employer's logo permanently attached and the clothing is not available to the public. You can't claim the cost of purchasing or cleaning a plain uniform (for example, a generic white shirt and pair of black trousers, as worn by many wait staff). Non-compulsory work uniforms must usually have a design registered with AusIndustry in order to be tax deductible. Shoes, socks and stockings can never form part of a non-compulsory work uniform, and neither can a single item such as a jumper. Cleaning of work clothing You can claim the costs of washing, drying and ironing eligible work clothes, or having them dry-cleaned. If the total amount of your laundry expenses are $150 or less and your total work-related expenses are $300 or less, you don't need to provide written evidence for your laundry expenses. Instead, for washing, drying and ironing you do yourself, the ATO allows you to use the following amounts to work out your laundry claim: $1 per load - this includes washing, drying and ironing - if the load is made up only of work-related clothing, and 50 cents per load if other laundry items are included.
