As before, the amounts are indexed annually for inflation. The TCJA changed the measure used for inflation indexing from the consumer price index for all urban consumers (CPI-U) to the chained CPI-U—a ...

After the TCJA’s changes, the SALT deduction is now claimed almost exclusively by high-income households. In 2020, only 3 percent of tax filers with adjusted gross income (AGI) between $20,000 and $50 ...

Every year, the Office of Management and Budget (OMB) and the congressional Joint Committee on Taxation (JCT) publish lists of tax expenditures. These lists, sometimes called the Tax Expenditure ...

Revenues from fines, fees, and forfeitures in 2021 were lower than in preceding years ($15.5 billion in 2019 and $14.9 billion in 2020), in part due to the COVID-19 pandemic. In the last two decades, ...

People who filed tax returns for either 2007 or 2008 qualified for “recovery rebates.” In total, the rebates lowered the average filer’s federal tax burdens by about 5 percent in 2008 (reducing the ...

A capital gain occurs if a capital asset is sold or exchanged at a price higher than its “basis,” the original purchase cost plus the cost of improvements less depreciation. When a person inherits an ...

Corporate Tax Rate and Corporate Alternative Minimum Tax The Tax Cut and Jobs Act (TCJA) reduced the federal top corporate income tax rate from 35 percent to 21 percent, bringing the combined US ...

In addition to these direct outlays, various tax provisions for health care reduced income tax revenue by nearly $300 billion. Over $185 billion of that figure comes from the exclusion from taxable ...

The federal earned income tax credit (EITC) provides a refundable credit to taxpayers based on their income and family circumstances (such as marital status and number of children). In 2023, 31 states ...

Since 1917, individual taxpayers have been able to deduct charitable contributions from income that might otherwise be taxed. Individuals may deduct cash and certain other contributions up to 60 ...

General sales taxes are taxes on goods and services purchased by consumers, and the tax is a calculated as a percentage of the listed retail cost and added to the final purchase price paid by the ...

But cuts can and do pay for themselves in part. If a 10 percent reduction in a tax rate yields a 3 percent increase in taxable income, for example, revenues fall by only 7 percent. Taxpayer responses ...