Expanded Child Tax Credit Update, Betting on the Super Bowl? How Retirement Income is Taxed

Betting on the Super Bowl? There Are Taxes With That | New Proposal Would Eliminate Tax on Social Security Benefits | How Different Types of Retirement Income Are Taxed Created for {EMAIL} | [Web Version]( February 11, 2024 CONNECT WITH KIPLINGER  [LinkedIn]( [Facebook]( [X]( [Youtube]( [Youtube]( [Tax Tips]( [SIGN UP]( ⋅ [WEBSITE]( [] Super Bowl Sunday [] [Betting on the Super Bowl? There Are Taxes With That]( [Betting on the Super Bowl? There Are Taxes With That]( (Getty Images) As you’ve probably heard, the Kansas City Chiefs are making their second consecutive appearance playing in Super Bowl LVIII against the San Francisco 49ers. As usual, fans are anticipating the advertisements and Usher's halftime performance. (There’s also talk about Taylor Swift and Travis Kelce.) Meanwhile, the American Gaming Association reports that nearly 70 million people will bet on Super Bowl LVIII, waging over $23 billion. According to the AGA, that would increase $16 billion from last year’s game. Are you one of the millions who will place a bet on Super Bowl 2024? If so, [there are some taxes to consider before you settle in to see who wins](. [] In the News [] [New Proposal Would Eliminate Tax on Social Security Benefits]( [New Proposal Would Eliminate Tax on Social Security Benefits]( (Getty Images) A new proposal has been introduced to eliminate federal taxes on Social Security retirement benefits. This initiative could bring relief to retirees as early as next year. That’s because the bill would remove federal taxes on Social Security income from 2025 onwards (tax returns filed in early 2026). The "You Earned It, You Keep It Act" has been hailed as a "win-win" by its sponsor, Minnesota Rep. Angie Craig (D-Minn.). However, similar proposals have been introduced previously and it remains to be seen whether this bill will pass this year. Should the bill gain Congressional approval, how would it impact retirees and workers? [Read on](. [An IRA You Can Feel Good About]( Did you know you can save for retirement at the same time you care for the planet? Open or roll over an IRA with Domini, and you'll get both a tax advantage and help to mitigate climate change too—all of our Funds are fossil fuel-free in accordance with our investment standards. Explore the Domini Impact Equity Fund. [Open a Fossil Free IRA]( ADVERTISEMENT [] Taxes in Retirement [] [How Different Types of Retirement Income Are Taxed]( [How Different Types of Retirement Income Are Taxed]( (Getty Images) When preparing for retirement, it's important to not only keep an eye on new tax legislation but also to consider how the federal government and states tax various sources of income. Your income may come from annuities, pensions, Social Security benefits, retirement savings accounts, investments, earnings, and proceeds. Understanding the tax implications of each income type can help you develop a tax-efficient strategy and make the most of your retirement. [Here is some information to help get you started](. 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 [] [Expanded Child Tax Credit Update]( You may have heard that there is a bipartisan tax package on Capitol Hill that would expand tax breaks for families and businesses. This package includes an expanded child tax credit. Congress had planned to pass the deal before tax season began on Jan. 29, but the US House of Representatives was on a break. However, the tax package recently passed the House with an overwhelming 357 to 70 vote and has now advanced to the U.S. Senate. What happens next is yet to be seen. Here’s some information about the chances of the bill’s passage and how a new child tax credit could affect your 2023 tax return. [Read More]( [3 Ways To Become A Liquidity Investor]( Be a savvy investor. Navigate private markets with discounted secondaries, capital solutions for distressed firms, and real estate deals. Unlock value and secure your financial future. [READ MORE]( ADVERTISEMENT [] In Case You Missed It [] [The Home Office Tax Deduction]( Like millions of people in the U.S., you may be fortunate to work from home. (Data show that the number of people working from home nearly tripled over the past few years). That may make you wonder whether you can claim a home office tax deduction on your federal income tax return. After all, you likely have some unreimbursed expenses. For example, you might pay for printer paper, ink, and other office supplies. Plus, your electric and utility bills are likely higher since you are home during the day. But the reality is not all taxpayers can claim the home office deduction. So, in case you missed it, here’s Kiplinger’s guide to this potential tax write-off. [Read More]( [Ask a Pro: Should I Convert My IRA to a Roth after age 60?]( Ask a pro. Try this free tool to get matched with up to 3 vetted financial advisors serving your area who can help answer your questions and work towards a comfortable retirement. Get your financial advisor matches today. [LEARN MORE]( ADVERTISEMENT [] STOP OVERPAYING ON YOUR TAXES [] [STOP OVERPAYING ON YOUR TAXES]( (Kiplinger) 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. 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