There are two big winners for the $1.787 billion Powerball jackpot — and one could face a bigger tax bill. Winning tickets sold in Missouri and Texas matched all six numbers from Saturday night’s drawing, and those individuals will split the second-largest lottery jackpot, according to Powerball. Each ticket holder can pick between two pretax…
Roughly $198.3 million goes straight to the IRS The Powerball jackpot winner can expect a large upfront federal tax withholding. The IRS requires a mandatory 24% withholding for prizes that exceed $5,000. If you choose the $826.4 million cash option, the 24% federal tax withholding automatically reduces your winnings by $198.3 million. But the windfall…
President Donald Trump‘s “big beautiful bill” raised the state and local tax deduction, known as SALT, to $40,000 for 2025. The change comes less than a decade after a cap was placed on this tax break for the first time in its history. Taxpayers who itemize tax breaks can claim the SALT deduction, which includes state and…
Former Federal Reserve Governor Adriana Kugler’s abrupt resignation from the board on Aug. 1 – and her unexplained absence at a key meeting two days earlier – left the financial community shocked and confused. Nominated by Democratic former President Joe Biden to fill a surprise vacancy on the Fed board and confirmed in 2023, Kugler’s…
A Social Security Administration (SSA) office in Washington, DC, March 26, 2025. Saul Loeb | Afp | Getty Images President Donald Trump’s “big beautiful bill” provides relief to certain Social Security beneficiaries who pay taxes on their benefits. But it doesn’t eliminate those levies entirely. Now, Sen. Ruben Gallego, D-Arizona, introduced a bill on Thursday…
Taylor Swift attends the 67th GRAMMY Awards on February 02, 2025 in Los Angeles, California. Frazer Harrison | Getty Images Entertainment | Getty Images A version of this article appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox….
Sinology | Moment | Getty Images A federal tax break for consumers who buy or lease electric vehicles will disappear after Sept. 30. However, consumers may have a little bit of wiggle room on that time frame, according to a new document released by the Internal Revenue Service. The tax credits, worth up to $7,500,…
dowell | Moment | Getty Images With the stock market hovering near record highs, you may have large profits sitting in a taxable brokerage account. Upon selling, you could owe capital gains taxes, levied at 0%, 15% or 20%, based on taxable income, if you own the assets for more than one year. There’s also a…
Marco Vdm | E+ | Getty Images For many investors, workplace retirement plans build long-term savings via automatic paycheck deferrals. But most employees don’t make Roth contributions, which can grow tax-free. Some 86% of retirement plans, such as 401(k)s, offered Roth contributions in 2024, but only 18% of investors with the option participated, according to…
After years of stock market growth, many investors are sitting on large profits in taxable accounts, which could trigger hefty capital gains when sold. That bill can be significant for wealthy Americans, with a 20% top capital gains rate, plus 3.8% net investment income tax, depending on earnings. One solution, known as a 351 conversion…
