As part of an omnibus spending package last December, Congress enacted several changes to retirement savings accounts that are scheduled to phase in over the next several years. The legislation expands saving opportunities for taxpayers by allowing additional catch-up contributions for workers approaching retirement, adopting automatic enrollment for certain retirement accounts, reforming the saver’s credit, and offering a new type of emergency savings account, among other changes. The changes improve the current tax system’s...(More)

Buyers of Tesla’s most affordable model, the Model 3 sedan, will no longer be eligible for the $7,500 U.S. electric vehicle tax credit starting next year, at least when it comes to the Rear-Wheel Drive and Long Range versions. The news comes from Tesla itself, which already updated its website to reflect the change, likely as a result of the updated Inflation Reduction Act guidance that was announced at the beginning of the month. Previously, the electric automaker had a slightly.... (More)

A long-awaited deduction for charitable contributions finally has been reinstated for Massachusetts taxpayers. State legislators are hopeful that the tax benefit, slated for 2021 but sidelined because of the pandemic, will supply an added incentive for taxpayers planning to make donations to nonprofit organizations. Full-time resident, part-year resident, and nonresident taxpayers can deduct charitable contributions on Schedule Y of their 2023 Massachusetts income tax return. Eligible contributions are subject to the same qualifying parameters as the federal deduction, although donations of...(More)

Unless Congress acts, on Jan. 1, 2026, the estate, gift and generation-skipping transfer (GST) tax exemption amounts will be cut in half. A decrease in the exemption amount could result in significant additional transfer taxes for families with federally taxable estates. However, there is still ample opportunity for high-net-worth families to plan to utilize the current exemption amounts. This article will explore potential wealth transfer opportunities to capture and utilize the exemption amount before it may be lost. (More)