News That Matters

Tag: Taxes

The IRS is making big changes to FSAs and HSAs. Here’s what to know.
Business

The IRS is making big changes to FSAs and HSAs. Here’s what to know.

Employers typically offer a period of open enrollment in the fall, when their workers are allowed to pick new health plans, enroll in a Flexible Spending Account or make other changes to their benefits. This year, there are some changes ahead that could help  employees, while also potentially opening up some financial pitfalls. Among the biggest changes for 2023 concern two tax-advantaged health savings accounts: Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA). These accounts can save workers a nice chunk of change by allowing them to sock away pre-tax money to pay for medical expenses. Basically, you save what you would have paid in taxes on money you put in the accounts. In 2023, employees can put away as much as $3,050 in an FSA, an increase of about 7% fro...
Pop singer Shakira to face trial over tax fraud in Spain
Entertainment

Pop singer Shakira to face trial over tax fraud in Spain

A Spanish judge on Tuesday approved a trial for Colombian pop singer Shakira on charges of tax fraud. Spanish prosecutors accused the entertainer in 2018 of failing to pay 14.5 million euros ($13.9 million) in taxes on income earned between 2012 and 2014. Prosecutors are seeking an eight-year prison sentence and a hefty fine if she is found guilty of tax evasion.Shakira, 45, has repeatedly denied any wrongdoing and rejected a deal with authorities to avoid going to trial. Her public relations firm has said that she has already paid all that she owed and an additional 3 million euros ($2.8 million) in interest. The court, based in the town of Esplugues de Llobregat near Barcelona, said that Shakira will face six counts of tax fraud. The date fo...
Inflation means your tax bracket could soon change. Here’s what to expect.
Business

Inflation means your tax bracket could soon change. Here’s what to expect.

Every year, the IRS adjusts many provisions to account for the impact of inflation, ranging from individual tax brackets to how much you can save in your individual retirement account, or IRA. With inflation running near a 40-year high, experts say some big changes are in store for taxpayers. The IRS makes these changes to avoid "bracket creep" from the rising cost of living, noted American Enterprise Institute's Kyle Pomerleau, an expert on taxes. Without such adjustments, workers who received pay increases to keep up with inflation would be bumped into higher tax brackets, even though their standard of living remained the same. This year, taxpayers could see some of the biggest changes in decades due to the hottest inflation since the early 1980s, tax experts say. While the IR...
How the Senate Democrats’ surprise spending plan could impact your taxes
Politics

How the Senate Democrats’ surprise spending plan could impact your taxes

The surprise agreement between Senator Joe Manchin and other Democrats on a new health care, energy and climate bill paves the way for some tax changes that have long been on President Biden's agenda. Whether the proposal could affect you may depend on your income, your job and where you live. Called the Inflation Reduction Act, the package — a dramatically scaled-down version of the last year's failed Build Back Better Act — aims to invest in clean energy, while allowing Medicare to negotiate drug prices and capping out-of-pocket drug costs for Medicare recipients at $2,000. The bill would also lower premiums for millions of people on Affordable Care Act plans. To pay for this, the bill would make changes to the IRS and the tax code to raise $739 billion, with about $300 millio...