⭐️ Major tax changes could be on the way for 2023 and 2024. The plan is to reintroduce some breaks from the pandemic and make wealthier people pay more taxes. While it's uncertain if this will happen, people are certainly taking notice. Additionally, we're sharing information on tax scams to watch out for, how most people's refunds are looking this year, and how one state is raising more money for education.

WHAT'S STEEPING NOW

🇺🇸 There is a proposal currently under consideration that could lead to significant tax reform.

🚫 The IRS is advising taxpayers to be vigilant against fraudulent schemes from scammers this tax season..

😧 The IRS has issued around 54 million refunds as of March 17, but the average refund payment of $2,933 is lower compared to last year's $3,305.

 🎓The Supreme Court in Washington ruled that the state's 7% capital gains tax is constitutional, which could generate $1 billion in revenue.

PIPING HOT TEA

2023 Proposed Tax Law Changes

There are some new tax changes being proposed for 2023, which means how much money people have to pay to the government might be changing. Here’s a breakdown of what’s being suggested:

TL;DR 

• Here are the changes proposed impacting the average American
• If you’re lower or middle income, the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) are proposed to be increased, a roll back to 2021 policy.
• If you want to buy a home, there may be a 30% reduction in annual mortgage insurance premiums for new borrowers.
• If you’re an active crypto trader, tighter restrictions on crypto losses
•  
• Here are the changes proposed impacting wealthier Americans
• If you have over $100M in “wealth”, there may be a new 25% minimum tax. ‘Wealth’ is still to be defined by lawmakers.
• If you’re making more than $400K, there is a proposed increased tax rate to 39.6%, a rollback of a reduction that was made in 2017.
• If you’re using a passthrough entity to avoid paying Medicare taxes, the loophole would be closed and the Medicare tax would be raised to 5% from 3.8%.

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THE SOCIALLY TAXING

(Source: @the_tax_house on instagram)

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