John Anthony Castro’s greatest claim to fame is probably his run for the 2024 Republican nomination for President. Using his status as a candidates for standing he filed lawsuits to have Donald Trump removed from the ballot on Fourteenth Amendment Section 3 grounds. Those cases did not go anywhere. The case that did go somewhere is the United States of America v John Anthony Castro in the United States District Court For the Northern District of Texas in Fort Worth. The indictment filed January 3, 2024 charged Castro with 33 counts of “Aiding and Assisting in the Preparation and Presentation…

The entire goal of investing is to make additional money. But if you meet that goal, you’ll owe tax on the money you earned. And depending on your income, you may owe net investment income tax, too.What is the net investment income tax?The net investment income tax (NIIT) is a 3.8% tax that kicks in if you have investment income and your income exceeds $200,000 for single filers, $250,000 for those married filing jointly or $125,000 for those married filing separately. Who has to pay the net investment income tax?You’ll have to pay the net investment income tax if you…

Allan Lichtman is weirdly famous. Of course, by famous I mean historian-famous, not Taylor Swift-famous. Or even Ron Chernow-famous — not every historian gets a helping hand from Lin-Manuel Miranda. But Lichtman, a history professor at American University, is indisputably famous among a certain group of extra-online, hyperpolitical news junkies. These people are fascinated by Lichtman because he makes ironclad predictions about who will win each presidential election. (He’s picked Kamala Harris this year.) Lichtman eschews the more defensible probabilistic forecasts like the ones from Nate Silver and other number crunchers. Lichtman likes his predictions to be clear and falsifiable,…

What is married filing jointly?Married filing jointly is one of five filing statuses taxpayers can choose from. If you file a joint tax return, you and your spouse report your combined income, credits and deductions. This also means that both people are responsible for any tax due.The other filing status married couples can choose when filing Form 1040 is married filing separately. Most married taxpayers choose to file a joint return since it can give them access to more tax credits and larger tax deductions. You qualify for married filing jointly status as long as you were married by Dec.…

Almost every legal settlement includes a full release of claims. A release may recite some of the plaintiff’s claims, but it will be broad. It might say any taxes on the settlement are solely the plaintiff’s responsibility, but should it say more? Yes, if there is a chance to add tax language before signing, take advantage of it. Disagreements can usually be worked out, and a few words can matter and help with taxes later. In contrast, a release that says nothing can invite IRS scrutiny. Consider Isidra Elizabeth Espinoza v. C.I.R, 636 F.3d 747 (5th Cir. 2011). This tax…

What is an underpayment penalty?An underpayment penalty is a charge the IRS imposes on taxpayers who did not pay all of their estimated income taxes for the year or paid their taxes late. You’ll face an underpayment penalty if you:Didn’t pay at least 90% of the tax on your current-year return or 100% of the tax shown on the prior year’s return.Paid your estimated taxes late.If you work for an employer, you may be hit with this penalty because the tax that was withheld from your paycheck during the year didn’t cover your full tax liability. If you’re an independent…

Tax Notes contributing editors Robert Goulder and Joseph J. Thorndike examine former President Trump’s and Vice President Harris’s proposals to exempt tips from the federal income tax, all in five minutes. This transcript has been edited for clarity. Robert Goulder: Hello, I’m Bob Goulder, contributing editor with Tax Notes. The presidential election is approaching fast, and both candidates have endorsed the idea of exempting tips from the federal income tax. Now, that’s bound to be a popular idea with a certain segment of the labor force, but is it good for the country as a whole? Is it good policy?…

In this episode of Tax Notes Talk, Tax Notes contributing editor Robert Goulder shares his take on the effects of the Foreign Account Tax Compliance Act and common reporting standards on the feasibility of taxing foreign assets. Tax Notes Talk is a podcast produced by Tax Notes. This transcript has been edited for length and clarity. David D. Stewart: Welcome to the podcast. I’m David Stewart, editor in chief of Tax Notes Today International. This week: spotlighting hidden assets. We’ve highlighted aspects of the efforts to identify hidden assets and the taxation of them in the past, such as with…

There has been a long-standing principle that UK VAT exemptions are applied narrowly but could the new government’s very high-profile decision to remove the exemption for supplies of education made by private schools be the start of the removal of other VAT exemptions? Slippery slope One obvious area is private healthcare. From a political perspective, there are similarities in that it could be said that only the wealthier members of society opt to pay for private medical care, with the inference being those people can therefore pay additional tax. From a tax technical perspective, the UK’s exit from the European…

One of the most common misconceptions about the federal tax system is that someone’s entire income is taxed at a single rate. In reality, most people pay at least a few different tax rates on different portions of their income.In tax speak, a marginal tax rate refers simply to someone’s highest tax rate. Marginal tax rate definitionA marginal tax rate is the rate paid on the last dollar of taxable income. It equates to your highest tax bracket. Although you may hear someone say that they are “in the 22% tax bracket,” what that really means is that 22% is…