All articles tagged with #federal tax
The Mega Millions jackpot has reached $489 million, making it the 15th largest in the game's history. A winner opting for the lump sum would take home approximately $172 million after a mandatory 24% federal tax withholding, potentially dropping to $142.6 million with a full 37% federal marginal rate. The next drawing is scheduled for Tuesday night.
House Republicans reintroduced the Death Tax Repeal Act to permanently repeal the federal estate tax, arguing that it penalizes families who have built successful farms, ranches, or small businesses. However, bipartisan support for repealing the tax is lacking, and experts believe it's unlikely to pass in the current split Congress. While the federal estate tax exemption has risen to $13.61 million per individual or $27.22 million for spouses in 2024, these limits are set to decrease after 2025. Additionally, only a small percentage of Americans are impacted by the estate tax, with most not being affected by the levy.
Democratic Minnesota Governor Tim Walz criticized the federal government's decision to tax rebate checks received by Minnesotans this year, calling it "bulls---." The IRS's decision to tax the rebates while pandemic relief payments in other states were tax-free could cost Minnesota residents between $26 and $286, depending on income and the rebate amount. Walz has spoken to Biden administration officials about the issue but no progress has been made. He argued that Minnesotans were being treated unfairly because the state missed a cutoff by 15 days to qualify for tax-free status, while other states were able to qualify. The Minnesota budget is projected to have a surplus of $2.4 billion through June 2025.