What are I bonds? Everything you need to know to earn almost 7% interest

What are I bonds?  Everything you need to know to earn almost 7% interest

I-bonds remain an attractive choice for many investors. These inflation-adjusted US savings bonds will earn an annual rate of 6.89% for six months beginning November 1. Previously, I bonds earned an annualized rate of 9.62% when purchased before October 28. The yield for I Bonds far exceeds cash, and the bonds appeal to investors who … Read more

What IRS inflation-adjusted tax brackets mean for you

What IRS inflation-adjusted tax brackets mean for you

Many Americans will see their tax burden decrease next year due to inflation adjustments made by the Internal Revenue Service. Some will benefit more than others. The IRS makes annual inflation adjustments to dozens of tax provisions, including the standard deduction and income tax, based on formulas set by federal law. Recent record inflation led … Read more

The IRS raises the estate tax threshold to $12.92 million for 2023

The IRS raises the estate tax threshold to $12.92 million for 2023

Taxpayers will be able to shield significantly more assets from the estate tax in 2023, after inflation adjustments made Tuesday by the Internal Revenue Service. Individuals will be able to transfer up to $12.92 million to heirs tax-free during their lifetime or upon death, up from $12.06 million this year. A married couple can shield … Read more

Inflation prompts IRS to raise tax brackets, standard deduction by 7%

Inflation prompts IRS to raise tax brackets, standard deduction by 7%

WASHINGTON – The Internal Revenue Service adjusted key tax code parameters for 2023 to reflect higher inflation, raising the standard deduction and income thresholds where tax rates take effect. The top marginal tax rate of 37% will apply to individual income above $578,125 and married couples’ income above $693,750 next year, as those thresholds rise … Read more

Inflation prompts IRS to raise tax brackets, standard deduction by 7%

Inflation prompts IRS to raise tax brackets, standard deduction by 7%

WASHINGTON—The top marginal tax rate of 37% will apply to individual income above $578,125 and married couple income above $693,750 next year, as those thresholds rise 7% starting in 2022 under inflation adjustments announced by the Internal Revenue Service on Tuesday. The standard deduction will rise to $27,700 for married couples and $13,850 for individuals, … Read more

How to reap tax breaks from your HSA

How to reap tax breaks from your HSA

Health savings accounts offer notable benefits. But the nuts and bolts of using them are often confusing. So it’s no surprise that the last tax report, which explored unusual features of HSAs, prompted a flood of reader questions. With open enrollment in health plans coming soon, many of these questions are worth further attention. First, … Read more

Social benefits will increase by 8.7% in 2023

Social benefits will increase by 8.7% in 2023

Social Security checks will be 8.7% larger in 2023, the largest cost-of-living adjustment to benefits in four decades, the Social Security Administration said Thursday. The extra funds will provide relief to many of the roughly 70 million Social Security recipients whose budgets have been stretched thin by high inflation and whose nest eggs were battered … Read more

Social Security COLA increase: What it means for your benefits

Social Security COLA increase: What it means for your benefits

Millions of older Americans whose budgets have been squeezed by inflation will get some kind of raise when the Social Security Administration releases its annual cost-of-living adjustment Thursday. The increase in monthly benefits, known as COLA, is expected to be the highest in four decades and will take effect in January. The Social Security Administration … Read more

Reduce the pain of required pension payments this year

Reduce the pain of required pension payments this year

Millions of retirees will get friendly reminders from their banks and brokers in the coming weeks to make the necessary withdrawals from their 401(k)s or other retirement accounts before the end of the year. The annual ritual may feel especially painful this time around, with the S&P 500 down nearly 25% for the year through … Read more

Tax Secrets of Health Savings Accounts

Tax Secrets of Health Savings Accounts

Millions of Americans will soon face the daunting task of choosing health insurance for 2023. If you’re one of them, it pays to be aware of little-known benefits—and some pitfalls—of health savings accounts, known as HSAs. HSAs are now a key feature of many health-insurance plans, both for employees and individual buyers. There were about … Read more