Susan Tompor: Wait, it's September and you still haven't received your tax refund? Here's why
By Labor Day and the roll out of pumpkin spice lattes at Starbucks, you’d think, maybe, that you’d finally have your hands on your federal income tax refund.For most people, after all, tax refund cash has come and gone. They spent that money months ago. Others are waiting and waiting, much like Carol Wilke who filed a tax return the day after the Super Bowl and still had not seen her tax refund of $1,406 seven months later.The 2020 tax season isn’t running short of frustrating scenarios even as the calendar inches closer to 2021. COVID-19 shutdowns threw a monkey wrench into the tax system.And...
Detroit Free Press
Susan Tompor: You may receive a check for $5 or less from US Treasury — and here's why
Did you just get a really odd check from the United States Treasury for some quirky amount, maybe like $2.26?Some super small checks — averaging $18 a pop — began flooding mailboxes in the past week as the U.S. Treasury and the Internal Revenue Service sent interest payments to cover delays in federal income tax refunds for some 2019 returns.My college-age son received his check for $2.26 in interest this weekend. Yes, that won’t even cover a typical run to Taco Bell for the $5 box meal.The interest payments are being made to 13.9 million taxpayers who experienced unusual delays in receiving t...
Detroit Free Press
Is it time to raise taxes on the rich? California Democrats call for new millionaire's tax
SACRAMENTO, Calif. — California’s wealthiest households pay the highest income tax rate in the country. It could go up a few more percentage points if Democrats follow through next year on a new proposal that would levy on a new millionaire’s tax for seven-figure earners.The concept has support from some of the state’s biggest public employee unions and Democrats in the Legislature. They argue the money is needed to support schools and government agencies that are charged with providing services to unemployed and struggling Californians.“We’re actually talking about folks who are doing extreme...
The Sacramento Bee
Vanguard's partnership profits were paid out early to employees during pandemic
The low-cost mutual fund provider Vanguard is immensely profitable.The private, for-profit company earns millions of dollars in fees each year and pays income taxes. And for senior executives and others at Vanguard, there’s a closely watched compensation program called “Partnership Plan” paid out every year.The Partnership Plan is Vanguard’s internal profit-sharing mechanism, designed to reward all employees, from top managers, who benefit the most, to full-time call-center employees, with a piece of the profits the low-cost fund manager generates.This year, Vanguard pushed up the Partnership ...
The Philadelphia Inquirer
Susan Tompor: July 15 tax return deadline is right around the corner: What to know
If you still need to file that 2019 income tax return, it’s time to get cracking.July 15 is the new April 15 for those who still have not filed a tax return. The traditional April income tax deadline was extended this year for 2019 tax returns, due to the upheaval created by COVID-19.The one-time extension applied for some state and municipal returns too.Think everybody who waited owes big money? Think again. Oddly enough, experts say millions of procrastinators are likely owed a federal income tax refund for 2019.H&R Block estimates that more than half of its clients who still need to file wo...
Detroit Free Press
'Sin taxes' could help states in pandemic budget slump — at least a little bit
WASHINGTON — Gas tax revenue plummeted this spring, income taxes won’t rebound anytime soon and some states are offering a property tax holiday because people can’t pay during the pandemic. But so-called sin taxes are rolling in as liquor stores boom, marijuana sales continue, vapers vape and smokers smoke.While not a huge portion of state tax revenue, sin taxes are a relative bright spot in a dark revenue picture. And some states are considering increasing those levies to make up some of the lost pandemic revenue.Taxes on those items often are more politically palatable because they generally...