A New IRA RMD Delay, Instant EV Tax Credit? How Long You Should Keep Tax Records

The Most Expensive States for Millionaires in 2024 | Retirees Are Facing Big IRS Tax Bills Due to Fraud | IRS Delays Inherited IRA Rules Created for {EMAIL} | [Web Version]( April 21, 2024 CONNECT WITH KIPLINGER  [LinkedIn]( [Facebook]( [X]( [Youtube]( [Youtube]( [Tax Tips]( [SIGN UP]( ⋅ [WEBSITE]( [] State Taxes [] [The Most Expensive States for Millionaires in 2024]( [The Most Expensive States for Millionaires in 2024]( (Getty Images) *Editor's note: Before we get into today's issue of the Tax Tips, we want to better understand our readers so we can provide the kind of stories you want on the financial topics that matter most to you. You're invited to take a [2-minute survey]( to tell us your interests. Your replies are entirely confidential, they will not be shared with any third party, and none of the answers are personally identifiable. [Click here to start](, thanks! There are reportedly over 24 million millionaires in the United States, and if you are one of them (or aspire to become one) it’s not a shock that you could be subject to high tax rates. In some places, state income tax rates can soar over 13%, meaning some high-earning taxpayers could pay more than half of their income as taxes. So, if you expect to make $1 million in 2024, [here is what you should know about the most expensive states for millionaires](. [] In the News [] [Retirees Are Facing Big IRS Tax Bills Due to Fraud]( [Retirees Are Facing Big IRS Tax Bills Due to Fraud]( (Getty Images) Scammers are preying on retirees, leaving some in dire financial situations and vulnerable to large IRS tax bills. A recent report paints a stark picture of how older adults in states like Pennsylvania, Ohio, Florida, Utah, California, and others have fallen victim to fraud, resulting in significant taxes on lost retirement savings. [Some lawmakers have suggested that restoring the casualty and theft loss tax deduction could provide some financial relief](. [Why you should make your will after tax season]( The best time to create your last will and testament is right now, after filing your taxes. That's because your financial and personal priorities are already top of mind, so it's easier to take stock of what needs to be accounted for in your will. [READ MORE]( ADVERTISEMENT [] Retirement Accounts [] [IRS Delays Inherited IRA Rules]( [IRS Delays Inherited IRA Rules]( (Getty Images) Inherited IRA beneficiaries must be aware of several important tax considerations — especially considering recent rule changes and delays involving required minimum distributions (RMDs). This week, the IRS announced that it is offering taxpayers relief from confusing rules for certain distributions. What does this latest rule delay mean? [Read on for details](. Featured Content Sponsored Content from The Kiplinger Tax Letter [Stop Overpaying on Your Taxes.]( Get a [FREE ISSUE]( of The Kiplinger Tax Letter and never pay one cent more than necessary on your taxes, for yourself, your business, or your clients. Then save up to 58% off the cover price to subscribe, and get exclusive special issues such as New Tax Rules This Year, Year-End Tax Planning, or other topics. [CLICK HERE]( [] Tax Breaks [] [The ‘Instant’ EV Tax Credit is a Hit: $580M Paid So Far]( Most eligible buyers of qualifying electric vehicles this year are taking their federal EV tax credit at the point of sale. Since January 1, when the point of sale credit became available, more than 100,000 eligible buyers (about 90%) have claimed the credit on new electric vehicles at dealerships. Are you interested in buying an EV at a discount? Here’s how the “instant rebate” works. [Read More]( [Veterans: Buying a home? Check VA Savings]( With powerful benefits like $0 down payment and the lowest average interest rates on the market, Veterans can offset some of the upfront costs of homeownership. See how much your benefits can save you. [READ MORE]( ADVERTISEMENT [] In Case You Missed It [] [How Long Should You Keep Tax Records?]( Tax season is nearly over for most, but don't dispose of your tax records yet. The documents, including forms, and receipts may come in handy later. The IRS typically has three years after the due date of your return (or after the date you file) to initiate an audit. However, some documents may require longer retention. So, in case you missed it, here's a summary of how long you should keep certain tax records. [Read More]( [Vanguard vs. Fidelity vs. Schwab]( Who are you partnered with? See how these popular brokerage firms stack up when it comes to fees, resources, and specific services, so you can decide on the right fit for you. 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