US Inflation Reduction Act Strategic Operating PlanAugust 2023
The IRS unveiled its Strategic Operating Plan, an ambitious effort to transform the tax agency and dramatically improve service to taxpayers and the nation during the next decade.
The report outlines the agency's historic plans to make fundamental changes following funding from last year's Inflation Reduction Act. (Source: US IRS)
IRS 2023 Inflation AdjustmentsOctober 2022
The internal revenue service, IRS, announced on October 18, 2022 new 2023 annual inflation adjustments, including adjustments for more than 60 tax provisions.
The adjustments generally apply to tax returns filed in 2024.
E.g. The foreign earned income exclusion for 2023 is USD 120,000 up from USD 112,000 in 2022.
The annual exclusion for gifts is USD 17,000 up from USD 16,000 in 2022.
U.S. Tax ReformSeptember 2017
President Trump presented on September 27, 2017 his U.S. tax reform.
The tax reform includes lowering of the corporate income tax rate from current 35% to 20%, lower than the worldwide average of 22.5%.
Personal income tax rates will include only three tax rates, 12% 25% and 35%, compared to the current seven tax rates.
Gift and inheritance tax will be abolished.
Deadline for Swiss BanksDecember 2013
According to a press release by the tax division of the US department of justice Swiss banks willing to avoid a prosecution are reminded that December 31, 2013 is the deadline for submitting a letter of intent.
The submission is a part of the original program dated August 29, 2013 relating to Swiss banks which violated the US tax laws.
U.S. Tax Rates 2013June 2013
The corporate income tax rates in 2013 range from 15% to 35% for income exceeding $ 18,333,333.
A new top marginal 39.6% rate for individuals was introduced in 2013 compared to the top marginal 35% tax rate in 2012.
Capital gains of companies are added to the regular income . For individuals long term capital gains are taxed at 20% while short term capital gains are added to the regular income.
OASDI, Old age, Survivor Disability Insurance is equally shared by the employer and employee each paying 6.2% up to a ceiling of $ 113,700. Medicare payments are also equally shared by the employer and employee paying 1.45% each .Self employed pay 12.4% for OASDI up to $ 113,700 and 3.3% for Medicare.
The top tax rate for gift and estate tax increased in 2013 to 40% compared to 35% in 2012.
U.S. Fiscal Cliff DealJanuary 2013
The U.S. congress approved on January 1 the fiscal cliff deal.
The deal includes raising the tax rate for taxpayers with annual income exceeding $400,000 from the current 35% rate to 40%.
In addition the tax rate for inheritance will increase.
The benefits for the unemployed will be extended for another year.
According to an estimate by the Washington tax policy center 77% of the U.S. households will pay more taxes in 2013 compared to 2012.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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