Tax season 2013 is a thing of the past, but many have begun to worry about what the future holds for 2014 and beyond. The question that often haunts taxpayers: Will my taxes go up? The answer is: Yes, and high-income households will likely bear the brunt of it. According to Howard Gleckman, contributor of Forbes.com, President Obama’s 2014 budget is responsible for the future spike.
In contrast to Obama’s pledge, it was reported that individuals and couples with an average household income of $200,000 and $250,000, respectively, would also pay a little more than previous years. Households in the $100,000 to $200,000 bracket would see a $150 added to their existing tax amount. And middle-income households ($50,000-$70,000) will see their taxes increase by up to $60 come 2015.
As mentioned, high-income households of $1 million or more will carry most of the weight. The new tax plans entails an average of $83,000 spike in their taxes, along with limitations on itemized deductions. Reportedly, by 2023, taxes would have increased by an estimated $1 trillion with households of $200,000 to $1 million and over paying the most.
According to analysts, everyone’s taxes will go up, regardless of individual or household income.
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For financial guidance in legitimate tax documentation and preparation for next tax season, contact our expert CPAs in McAllen of Gonzalez & Arrambide, Inc. at 956-447-9009.
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Texans already said no, but Texas lawmakers keep pushing for a yes. And they won. The struggle over whom or what would fund state highways caused a dispute in the Lone Star State. And it worsened as Texans learned local property and sales taxes would be the primary and only source for funding. It is a heated situation, since Texans are plagued with increasing property taxes, cutting budgets in half.
The Texas House passed Senate Bill 1110, which would directly grant state officials the right to utilize property and sales tax to fund state highway projects. The irony: Texans will provide the taxes but will also be charged a toll to use these highways, or toll roads. It is no surprise why the proposed bill was rejected the first time around in 2011 and again in 2013.
Competition amongst the Senate and Texas House prompted the ordeal to escalate. Highway and road funding have been left to slowly cook on the backburner while public schools take first spot on the list of priorities. The matter is to be decided by Governor Rick Perry who expected to evaluate the bill for a final decision.
If your property taxes are reaching an all-time high and you would like to file a rendition, contact the accountants in McAllen of Gonzalez & Arrambide, Inc. at (956) 351-6531.
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Over six hundred thousand people who tried to claim educational credits on Form 8863 on H&R Block’s software were unable to, causing an additional six-week delay in their tax refunds. The company received thousands of complaints because the software did not allow tax filers to complete the mandatory information on the form.
Forms filed in February were the ones mainly affected because that is when the IRS changed the format of certain fields. H&R Block says it is working with IRS to rectify the situation and address the problems associated with the changes in the form to make it easier to answer questions that used to be “Yes” or “No” instead of the newly required “Y” or “N”. The IRS is still able to process the forms, but according to them, it will take longer because they must perform more steps to fix the problem.
This delay is sure to cause problems for cash-strapped taxpayers, students who need federal financial aid, and those wanting to pay off debt. Students are the most widely affected because they face deadlines for the following school year. The IRS states that students can update their information as necessary to complete their forms after they have been accepted.
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For more information on ways to avoid the complications arising from filling out tax forms online, contact the tax experts of Gonzalez & Arrambide, Inc. at 956-447-9009.
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Apple, according to a recent congressional investigation, avoided paying upwards of $70 billion in taxes between 2009 and 2012. Apple has placed a good amount of money in offshore accounts, something to the tune of $44 billion. Apple’s CEO, Tim Cook, said in their defense, “To our knowledge Apple is the largest corporate taxpayer in America.” Mr. Cook told a senate panel Apple paid $6 billion in taxes last year.
How Apple Avoided Paying Taxes
The congressional report found that Apple had avoided paying billions in taxes by using subsidiaries in other countries. Apple created multiple companies that were being run by top employees from California. These companies didn’t have employees themselves; rather they simply collected profits from abroad and paid little to no taxes in the region where the subsidiary is located. The senate panel has said that, while Apple didn’t break any laws in their tax practices, it did exploit numerous tax loopholes to its (financial) advantage.
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If you have any questions about your business taxes or what kind of corporate structure your business should emulate, contact Gonzalez & Arrambide, Inc. at 956-447-9009.
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Small businesses are beginning to gain steam as they recover from the recession. This revival has led to a rise in approval rates in small business loans from the nation’s largest banks. Banks had been hesitant to lend out money to small business in recent years due to high default rates and low credit quality, but the trend is slowly working its way back.
Self-Employment, Made Possible Through a Small Business Loan
Investing in a small business is a daunting and a potentially complicated task. The paperwork required to apply seems like Mount Everest on your desk, and the time required to fill it out (correctly) is substantial. Any mistake on an application can result in a setback, anywhere from a couple of days to weeks. Because of this, many small businesses owners seeking a loan turn to a professional to help them sort out the paperwork. In theory, your business is only an application away from being a reality.
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If you need professional help in applying for a small business loan, obtaining financing, or financial projections contact Gonzalez &Arrambide, Inc. at 956-447-9009. We will help guide you through the process, and answer any questions you may have along the way.
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