Money Talk: Don’t Trash Your Credit Score Over Stolen TV
Question: A few months ago, I purchased a large television from a nearby store. I was offered no interest for 12 months using the store’s credit card. The TV was stolen from the back of my pickup truck before I was able to bring it into my apartment. I called the police and filed a report. The next day I returned to the store and asked if anything could be done. They said they could only offer another television for a discounted...
Internet Service Tax Ban About to Be Permanent
Washington — Should state and local governments be able to collect taxes on your Internet service? For years, Congress has repeatedly banned the practice, but only for short spurts at a time. Now, a bill that’s soon set to become law will make that ban permanent — meaning Internet providers, and by extension, consumers, won’t have to fear that their subscription to fixed broadband will be subject to state and local taxes. Buried in a...
As Rich Get Super-Rich, They Pay Lower Taxes
Washington — One of the cornerstones of American income tax policy is that taxes are progressive. People who make more money devote a higher share of their income to federal income taxes than people who make less money. That allows for a redistribution of wealth that lowers inequality. At least, that’s how it’s supposed to work. But data out this spring from the Internal Revenue Service gives us a closer look at how such taxes work at...
Social Security Q&A: Do I Have to Pay Taxes on My Benefits?
Question: Do I have to pay taxes on Social Security benefits? Also, where can I get a replacement 1099? Answer: Some people who get Social Security must pay federal income taxes on their benefits. Still, no one pays taxes on more than 85 percent of their Social Security benefits. You must pay taxes on some portion of your benefits if you file an individual federal tax return and your combined income exceeds $25,000. If you file a...
Money Talk: 529 Plans Really Can Come in Handy
Question: You recently mentioned in your column that you can’t use any of the three education tax breaks — the American Opportunity Credit, the Lifetime Learning Credit or the tuition and fees deduction — for expenses paid with 529 college savings plan money. This has me wondering if those 529 plans are really worth it. Wouldn’t you have to have a really large amount invested to have enough earnings to make it worth not taking one of...
