You can keep more money from the IRS next year, thanks to inflation

luvmyhawks

HR Legend
Mar 22, 2005
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WTF are you babbling about now? Taxes are owed on income received. There's no provision stating that the government needs to subsidize someone's losses. It's one of the flaws that the wealthy take advantage of to avoid paying taxes.

Do you know any wealthy people? Based on your comments it appears you don't.

You seem to think only the wealthy benefit from tax loss harvesting. That simply isn't true.
 

theiacowtipper

HR Legend
Gold Member
Feb 17, 2004
14,771
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Maybe taxpayers shouldn't get any of the benefits of their risks then?
But it’s income. You pay taxes on income. To the extent it exceeds the standard deduction, I can offset reasonable expenses related to my regular income from my taxes. A person with capital gains has reasonable expenses related to those gains they can deduct. They shouldnt be allowed to offset regular income because they made bad investment decisions.

I would be absolutely 100% fine with a progressive tax for individuals that has zero deductions. Absolutely none. However, individuals cannot incorporate to avoid that tax, like they can now. Let’s remove every deduction. Set the rate really really low for the first 30 grand or so. Maybe 1% for the first 5k and then go up. All income is subject to that progressive tax. Let’s do it.
 
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RileyHawk

HR Legend
Gold Member
Aug 21, 2002
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But it’s income. You pay taxes on income. To the extent it exceeds the standard deduction, I can offset reasonable expenses related to my regular income from my taxes. A person with capital gains has reasonable expenses related to those gains they can deduct. They shouldnt be allowed to offset regular income because they made bad investment decisions.

I would be absolutely 100% fine with a progressive tax for individuals that has zero deductions. Absolutely none. However, individuals cannot incorporate to avoid that tax, like they can now. Let’s remove every deduction. Set the rate really really low for the first 30 grand or so. Maybe 1% for the first 5k and then go up. All income is subject to that progressive tax. Let’s do it.
Will never happen. Far too much money is made by keeping the tax laws complicated.
 

luvmyhawks

HR Legend
Mar 22, 2005
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Which income group gets most of the benefits? I would wager that low and middle class earners have little in the market outside a 401k.

Of course the upper income will receive a greater benefit due to the tax rates. Plenty of middle class earners have assets outside of 401k's and take full advantage of tax loss harvesting.
 

luvmyhawks

HR Legend
Mar 22, 2005
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They are by far the biggest benefactors. That said, no one should.

Well, it is only 3k, so it isn't really a huge benefit.

I will say I always thought it was kind of weird to let people reduce their income due to losses. However, if the benefit is there, might as well use it.
 

notlongago

HR Heisman
Jul 28, 2012
5,444
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But it’s income. You pay taxes on income. To the extent it exceeds the standard deduction, I can offset reasonable expenses related to my regular income from my taxes. A person with capital gains has reasonable expenses related to those gains they can deduct. They shouldnt be allowed to offset regular income because they made bad investment decisions.

I would be absolutely 100% fine with a progressive tax for individuals that has zero deductions. Absolutely none. However, individuals cannot incorporate to avoid that tax, like they can now. Let’s remove every deduction. Set the rate really really low for the first 30 grand or so. Maybe 1% for the first 5k and then go up. All income is subject to that progressive tax. Let’s do it.
And you get deductions on costs - losses are costs of engaging in the markets.
 
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Gonolz

HR Legend
Aug 6, 2002
22,514
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Well, it is only 3k, so it isn't really a huge benefit.

I will say I always thought it was kind of weird to let people reduce their income due to losses. However, if the benefit is there, might as well use it.

$3k is definitely not a huge benefit. It is more like a rounding error.
 

Titanhawk2

HR Legend
Jul 14, 2011
12,542
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The Internal Revenue Service will allow Americans to shield more of their income from taxes in 2023 because of higher inflation, the agency announced Tuesday, raising income thresholds for all tax brackets and increasing the standard deduction.

The top tax rate of 37 percent will apply to individuals with income exceeding $578,125 and married couples filing jointly with income more than $693,750. Both of those amounts are up 7 percent from 2022 to track with increases in the consumer price index.


The standard deduction — the baseline amount of income that filers can collect tax free — will increase to $13,850 for individuals and $27,700 for married couples. It is the largest adjustment to deductions since 1985, when the IRS began annual automatic inflationary adjustments.


Certain parts of the tax code are tied to inflation to prevent rising prices from causing higher taxes. Taxpayers will see the new figures reflected in withholding statements on paychecks beginning in January, with workers securing more take-home pay.


The tax system changes follow a large cost of living adjustment, or COLA, announced by the Social Security Administration last week to compensate for inflation. Social Security benefits are set to jump 8.7 percent in 2023, the greatest such increase in four decades.
Social Security benefits will jump next year. Here’s why.
Several other elements of the tax code also are indexed to inflation. The maximum 2023 Earned Income Tax Credit, one of the federal government’s main anti-poverty measures, will be $7,430, up from $6,935 in 2022.

The annual gift tax exclusion — the maximum amount one person can give another without incurring a tax penalty will rise to $17,000 from $16,000. The estate tax threshold, often used by the wealthiest Americans to shield inherited assets from levies, will jump to $12.9 million from $12.1 million.
Yes, that letter from the IRS is real. You could be owed $1,400.
The IRS will also allow parents adopting a child to shield $15,950 per child from taxes, up from $14,890 in 2022.

Thanks Joe? It goes up every effing year?

The 2019 standard deduction is increased to $24,400 for married individuals filing a joint return; $18,350 for head-of-household filers; and $12,200 for all other taxpayers.

The 2020 standard deduction is increased to $24,800 for married individuals filing a joint return; $18,650 for head-of-household filers; and $12,400 for all other taxpayers.

For single taxpayers and married individuals filing separately, the standard deduction rises to $12,550 for 2021, up $150, and for heads of households, the standard deduction will be $18,800 for tax year 2021, up $150
 

Funky Bunch

HR Legend
Mar 30, 2011
26,219
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Thanks Joe? It goes up every effing year?

The 2019 standard deduction is increased to $24,400 for married individuals filing a joint return; $18,350 for head-of-household filers; and $12,200 for all other taxpayers.

The 2020 standard deduction is increased to $24,800 for married individuals filing a joint return; $18,650 for head-of-household filers; and $12,400 for all other taxpayers.

For single taxpayers and married individuals filing separately, the standard deduction rises to $12,550 for 2021, up $150, and for heads of households, the standard deduction will be $18,800 for tax year 2021, up $150

So you really can't read?
 

joelbc1

HR King
Gold Member
Sep 5, 2007
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you can’t always get what you want!
Taxes are owed on income received??? What about sales tax? What about property tax? What about payroll taxes that employers have to pay on top of the wages they pay to their employees?

Taxes aren't always based on income received, you effing twat.
Well you “effing twat” (stanza)......Someone “received” the money to be taxed...didn’t they?