Thanks to Prof. James Maule for his insightful post about the latest salvo in the ongoing Capital Gains/Losses war. Senators Hatch and Lincoln want to increase the amount of Capital Losses that can be used to offset other income from $3000 a year to $10,000 and index that amount to inflation. Prof. Maule points out that capital losses are not the only tax item still not tied to inflation yet there is no mention of changing anything but capital losses.
Taxability of Social Security has long been my pet peeve. Not that it could be taxable but that in over 20 years of tax preparation the threshold amounts have not changed. As I previously posted
here, more seniors are getting caught paying taxes on their social security. Several states, Kansas and Oklahoma for example, have stopped including taxable social security benefits in state tax calculations for at least lower income taxpayers. While that does help, a better solution would be to fix the issue on a Federal level.
In the previous post, linked above, I suggested this was an issue that the taxpayer's advocate should be looking at including in their report. My question now is why is this not also part of senior advocate groups such as AARP?
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