The latest government inflation data could equate to an 8.7% cost-of-living adjustment for Social Security benefits next year, according to The Senior Citizens League. The latest estimate would represent the largest adjustment in four decades.
A report from the Census Bureau shows real median household income in the US totaled $70,784 in 2021, down slightly from $71,186 during the previous year, although the change was not statistically significant.
The FASB is set to consider tweaking its lease accounting standards. Under the current accounting rules that some companies are still adjusting to, operational leases are disclosed on the balance sheet, both as an asset and a liability, in the same way as capital leases. Previously, operating leases were disclosed as expenses on the income statement and in the footnotes to the financials. Guidance on the treatment of leases, updated in 2016 under section 842, is one of three major standards currently undergoing post-implementation reviews, FASB spokesperson Christine Klimek said. “It is typical for a large significant standard to require some fine tuning after it’s been issued,” she explained. The potential improvements to the accounting will focus on issues around leases between entities under common control, according to the agenda. Klimek said it is a narrow area of the leases guidance that was raised as part of the board’s ongoing post-implementation review of the leases standard. Separately, next week FASB will also consider whether to move forward with a project to set fresh accounting standards for joint ventures.
The number of people who think they're financially savvy but really aren't has increased over time, according to a new study. Researchers from Ohio State University, the University of Alabama and York University in Toronto examined data from the National Financial Capability Study, which interviews Americans from every state every three years about their financial knowledge and behavior. The survey asked five multiple-choice questions to measure objective financial knowledge. The questions are related to interest rates, inflation, bond prices, mortgages and financial risks. The researchers looked specifically at data from the 2009, 2012, 2015 and 2018 surveys, each of which included between 25,000 and 29,000 Americans. What they found was that average test scores declined steadily between 2009 and 2018. Despite this, however, the percentage of those who believed they were above average in financial literacy, but actually scored lower than average on the test, increased from about 15% in 2009 to nearly 21% in 2018.
Property taxes are the primary tool for financing local government and generating state-level revenue in some states as well. Local governments rely heavily on property taxes to fund schools, roads, police departments, and fire and emergency medical services, as well as other services associated with residency or property ownership. Because property taxes are locally levied, providing a useful state-level comparison can be difficult; as a result, the Tax Foundation provides a multifaceted view.l
In more than a century of state income taxes, only four states have ever transitioned from a graduated-rate income tax to a flat tax. Another four adopted legislation doing so this year, and a planned transition in a fifth state is now going forward under a recent court decision. In what is already a year of significant bipartisan focus on tax relief, 2022 is also launching something of a flat tax revolution.
Federal Reserve Vice Chairman Lael Brainard told a conference that there are still questions about the idea of creating a digital dollar. Brainard also pointed to risk if stablecoins are not properly regulated.
The shifting interest rate environment means that retirees may want to reconsider whether they should pay off their mortgages or invest the additional funds in a low-risk financial vehicle. Tax considerations and liquidity issues should also be factored into the decision.
The Inflation Reduction Act (H.R.5376) is a climate and tax bill that advances elements of the administration’s economic agenda. President Biden signed the Inflation Reduction Act into law in August 2022. The legislation includes provisions designed to prevent the largest corporations from exploiting tax loopholes that allow them to pay little or no federal income tax. It also includes new and extended tax credits designed to incentivize businesses and individuals to boost their use of renewable energy. While additional guidance and regulations are expected in the coming months and years, here is a look at the key corporate tax provisions of the Inflation Reduction Act. Unless otherwise noted, all changes are effective beginning after December 31, 2022.
Perhaps one of the most controversial pieces of the Inflation Reduction Act is the expansion of the IRS. The law will increase the IRS budget by roughly $80 billion over 10 years. The IRS funding increase should raise additional revenue and help shrink the tax gap, while imposing some additional compliance costs along the way. The biggest win-win for reducing both the tax gap and taxpayer compliance costs is still simplifying the tax code. However, this new law does not take significant steps towards simplification.
Over the course of the next year, lawmakers on the U.S. House and Senate Agriculture committees will draft a new federal farm bill that will shape food, farm, conservation and nutrition programs across the country for the next five years. The omnibus law that began 90 years ago as crop supports now has an impact far beyond the farm, with programs to create wildlife habitat, address climate change and run the nation’s largest federal nutrition program.
The IRS is warning tax professionals to be on the lookout for signs of data theft so they can respond quickly on behalf of their clients.
The AICPA is making multiple changes to the CPA Exam to reduce exam construction complexity, improve CPA Exam software performance, and provide greater flexibility in future delivery, all while maintaining a rigorous exam. Rather than implement these changes now and delay score releases, the AICPA will make these changes concurrently with the launch of the CPA Evolution-aligned CPA Exam in January 2024, taking advantage of score delays that will occur with the launch of the new exam.
In December 2021, the STEM Education in Accounting Act, S. 3398, was introduced in the Senate. The legislation would help bolster the argument that accounting is a STEM field by allowing STEM K-12 grant funding to be used for accounting awareness and education.
The Nebraska Department of Revenue, Property Assessment Division, has posted a news release to the website for Claim for Nebraska Personal Property Exemption, Nebraska Advantage Act, Form 312P or ImagiNE Act, Form 1107P Due On or Before May 2, 2022.
The newly launched Nebraska Chamber Foundation Workforce & Economic Dashboard offers insights into Nebraska's economy.
The Nebraska Revenue Committee recently heard LB1264, a bill to modernize Nebraska’s tax structure by reducing income tax rates, repealing the inheritance tax, expanding the sales tax base, and eliminating most incentives. Here's what the Tax Foundation has to say about the bill.
The story of Nebraska has been under-told and under-sold and it's time for that to change. Join us as we promote our welcoming communities, work-life balance and the widespread opportunities that exist in our state. Help us be a voice for Nebraska as we show the rest of the country that the Good Life is Calling.
The FIRE movement, which stands for Financial Independence Retire Early, involves thinking about retirement in terms of a financial number, rather than an age. Here is a closer look at what the movement entails and how people can achieve their target number by slashing expenses or by employing other strategies.
HHS and CDC have put together three easy ways to find the closest locations to you that are administering vaccines 1. Text a zip code to GET-VAX (438-829). 2. Go to www.vaccines.gov and click “Find Vaccines.” 3. Call 1-800-232-0233 to speak directly with someone. If you would like more information on best practices, what to do if you are feeling ill, and up-to-date updates, please visit: https://www.cdc.gov/coronavirus/2019-ncov/index.html. You can also contact the CDC for more information at 800-232-4636.