Hi 

The IRS is getting a nearly $100 billion infusion and are hiring enforcement agents like there is no tomorrow.  Biden states that he wants to collect an extra $2 Trillion by stricter audits during the next 10 years.  The tax laws are changing, and if you think the changes will only affect the rich, I have a bridge in Brooklyn I would love to sell you.  The changes will affect you.

For example, the tax rates may all stay the same, but the actual threshold you will need to reach before you get a specific rate kicking in will change.  The plan is to go back to the 2017 brackets.  In the Tables below, look at the 2017 brackets and the brackets under Trump's tax 2017 Tax Cut and Jobs Act that took effect January 1, 2018.  If you made $160,000 as a couple in 2017 you would be paying tax for the last few dollars at 28%.  Your effective tax rate would be 19.8%.  Under the 2017 Tax Cut and Jobs Act Trump enacted (see the second table below) your highest bracket would be 22% and your effective rate would be 16.7%.  You are going to end up paying a lot more taxes because of the bracket changes, but it gets worse.

2017 Taxable Income Tax Brackets

Rate       Single                                    Head of Household         Married Filing Jointly

10%        Up to $9,325                       Up to $13,350                     Up to $18,650

15%        $9,326 to $37,950             $13,351 to $50,800          $18,651 to $75,900

25%        $37,951 to $91,900          $50,801 to $131,200        $75,901 to $153,100

28%        $91,901 to $191,650        $131,201 to $212,500     $153,101 to $233,350

33%        $191,651 to $416,700     $212,501 to $416,700     $233,351 to $416,700

35%        $416,701 to $418,400     $416,701 to $444,550     $416,701 to $470,000

39.6%    $418,401 or more            $444,551 or more            $470,001 or more

2020 Taxable Income Tax Brackets based on the Tax Cuts and Jobs Act

Rate       Single                                    Head of Household         Married Filing Jointly     

10%        Up to $9,875                       Up to $14,100                     Up to $19,750                    

12%        $9,876 to $40,125             $14,101 to $53,700          $19,751 to $80,250         

22%        $40,126 to $85,525          $53,701 to $85,500          $80,251 to $171,050       

24%        $85,526 to $163,300        $85,501 to $163,300        $171,051 to $326,600    

32%        $163,301 to $207,350     $163,301 to $207,350     $326,601 to $414,700    

35%        $207,350 to $518,400     $207,350 to $518,400     $414.700 to $622,050

37%        $518,400 or more            $518,400 or more            $622,500 or more

In 2017 the alternative minimum tax kicked in somewhere between $80,000 to $100,000 in income, depending upon how the income was actually derived.  Back in 2017 your accountant didn’t even bother to tell you that your taxes were being calculated using an alternative tax calculation (the alternative minimum tax method) to make sure you paid your fair share.  The alternative tax calculation method made it so you definitely paid more in taxes.  Trump raised the alternative minimum tax kick-in point to about $400,000.  Here again, none of the tax rates will change, but if the alternative minimum tax is lowered back to the 2017 levels, you’ll be paying a lot more income tax, because you’ll have to use the alternative minimum tax methods to make your tax calculations. 

The Tax Summit on Friday, July 16 will fill you in on all the details we know about, and help you plan what to do to reduce your audit risk substantially and put more money in your pocket.  With audits increasing 300-500%, you’ll need to have all your ducks in a row.  Your biggest asset protection threat today is definitely the IRS.  The Tax Summit is a very limited event.  We will interact with the handful of folks attending this virtual event. 

Ben Rucker, the former IRS special auditor/agent, and I will answer your personal questions.  That’s why we keep it small.  JULY 6 IS YOUR LAST DAY TO REGISTER FOR THE HUGE DISCOUNT.  Use discount code “SUBSCRIBER” for 60% off.  We are almost full, so don’t wait.  Register now, and don’t be left out.  See you there.