Monthly Archives June 2021

IRS: Texas Increased Taxpayers by 114K, $ 4 Billion in Gross Income | Texas

(The Center Square) – Texas welcomed new residents of all ages and income in the years leading up to the COVID-19 pandemic, according to recent data from the Internal Revenue Service (IRS).

Data was collected for the 2018 and 2019 tax years, which means it represents the 2017 and 2018 tax returns. The data reflects migrant taxpayers who paid taxes in another state or county during from the same period.

Between the 2018 and 2019 tax years, the Lone Star state added a net of 114,194 new taxpayers and dependents to the state. This total was over $ 4 billion in adjusted gross net income.

Over 72,000 Californians deceased the west coast of Texas, according to data.

IRS data adds to a trend that Texas is increasingly becoming a destination for businesses and real estate owners.

In September, Governor Greg Abbott’s Office of Economic Development reported a “considerable increase” in relocations of companies to the state since the start of the pandemic.

Late last year, software company Oracle finalized its move to Austin. It wasn’t long after that Tesla announcement he was going to build a gigafactory in the state. Apple also decided to build a campus in Austin.

The US Census Bureau also reported that Texas has grown much faster than California over the past decade. Even though California is still the most populous state in the country, Texas added nearly twice as many residents as the Golden State between 2010 and 2019.

Texas Public Policy Foundation vice president Chuck DeVore wrote in an editorial for Fox News that the phenomenon is a sign that lowering taxes are in fact encouraging growth.

“If California’s anti-employment policies, high taxes, capricious regulatory enforcement, and blackout-inducing energy policies can drive out the company that started Silicon Valley, can a company, big or small, is safe from the pressures to move? ” he wrote.

“Unless a business has to serve the California market directly, like a fast food restaurant chain, the answer is a definite no!


Source link

IRS: Texas Increased Taxpayers by 114K, $ 4 Billion in Gross Income | Texas

(The Center Square) – Texas welcomed new residents of all ages and income in the years leading up to the COVID-19 pandemic, according to recent data from the Internal Revenue Service (IRS).

Data was collected for the 2018 and 2019 tax years, which means it represents the 2017 and 2018 tax returns. The data reflects migrant taxpayers who paid taxes in another state or county during from the same period.

Between the 2018 and 2019 tax years, the Lone Star state added a net of 114,194 new taxpayers and dependents to the state. This total was over $ 4 billion in adjusted gross net income.

Over 72,000 Californians deceased the west coast of Texas, according to data.

IRS data adds to a trend that Texas is increasingly becoming a destination for businesses and real estate owners.

In September, Governor Greg Abbott’s Office of Economic Development reported a “considerable increase” in relocations of companies to the state since the start of the pandemic.

Late last year, software company Oracle finalized its move to Austin. It wasn’t long after that Tesla announcement he was going to build a gigafactory in the state. Apple also decided to build a campus in Austin.

The US Census Bureau also reported that Texas has grown much faster than California over the past decade. Even though California is still the most populous state in the country, Texas added nearly twice as many residents as the Golden State between 2010 and 2019.

Texas Public Policy Foundation vice president Chuck DeVore wrote in an editorial for Fox News that the phenomenon is a sign that lowering taxes are in fact encouraging growth.

“If California’s anti-employment policies, high taxes, capricious regulatory enforcement, and blackout-inducing energy policies can drive out the company that started Silicon Valley, can a company, big or small, is safe from the pressures to move? ” he wrote.

“Unless a business has to serve the California market directly, like a fast food restaurant chain, the answer is a definite no!

Recent stories you may have missed


Source link

Taxpayers Fleeing Blue States Bring $ 26.8 Billion in Gross Revenue to Red States

IRS state-to-state data tracking migration shows that the blue states saw a net outflow of hundreds of thousands of taxpayers who took nearly $ 27 billion in gross taxable income with them in the Red States.

The most recent IRS migration data shows that during the years 2017-2018, 399,892 net taxpayers and their dependents left the Blue States, defined in this case as those in which the State House and Senate are controlled by the Democrats.

The figures are based on 2018-2019 tax returns and tax exemptions, reflecting the flows of people from state to state in 2017-2018. The IRS views tax returns as a proxy for households, while exemptions are a good approximation of the number of individual taxpayers and their dependents.

The nearly 400,000 taxpayers and dependents – just over 0.1% of the US population – who left the Blue States took with them $ 26.8 billion net of adjusted gross income taxable to the Red States.

Democrat-controlled California (167,563), New York (153,970) and Illinois (82,107) accounted for most of the exodus, followed by New Jersey (26,853), Massachusetts (26,086) and Maryland (15,916).

The main beneficiary of the exit from the Blue State was GOP-controlled Texas, which saw a net influx of 114,818 taxpayers and their dependents, as well as an increase in gross income of nearly $ 4 billion. .

Interstate migration flows are influenced by a number of factors, including crime rates, employment opportunities and housing costs. A routine Census Bureau survey asks people who travel any distance the main reason for their decision to move, including employment, housing, going to college, crime, or to join a loved one.

The most popular picks in 2019-2020 (xls), ranked by popularity, were “looking for a newer / better / larger house or apartment”, followed by “new job or job transfer”, “to establish own household”, “other family reason “, Rent” and “wanted cheaper housing”.

The least popular responses were “natural disaster,” “climate change,” and “foreclosure or eviction,” with “better neighborhood / less crime” somewhere in the middle.

Although taxes are not part of the Census Bureau survey, a 2018 Analysis by the Cato Institute, a libertarian think tank, argued that taxes influence migration, and said tax incentives could be inferred from some of the Census Bureau survey responses.

“The Census Bureau does not ask movers about taxes. But some of the 19 choices may reflect the influence of taxes, ”the institute wrote in the analysis. “For example, people moving for housing reasons may consider the level of property taxes, as these taxes are a standard item listed on home sale notices. Likewise, people who move for a new job may factor in the effect of income tax if they move, for example, between a high-tax state like California and a state without income tax. like Nevada.

Nevada was one of seven blue states that saw a net influx of people, welcoming 31,238 taxpayers and their dependents, as well as just over $ 2 billion in gross income. Most of the people who moved to Nevada were from California.

According to the report of the Tax Foundation state-local tax burden analysis, blue states generally have a higher effective local tax rate than red states.

A Recent Rasmussen poll showed that a majority (55%) of likely voters nationwide prefer a smaller government with fewer services and lower taxes.

To follow

Tom Ozimek has extensive experience in journalism, deposit insurance, marketing and communications, and adult education. The best writing advice he’s ever heard is from Roy Peter Clark: “Hit your target” and “leave the best for last”.


Source link

California loses 300,355 taxpayers and $ 12 billion in gross revenue to other states since 2017

It’s no secret that Californians are leaving the state in droves. Some are political refugees exhausted by the one-party Democratic regime. Others are economic refugees, seeking lower taxes and a more acceptable cost of living.

A new report by The Center Square provides details:

The Internal Revenue Service recently released its latest taxpayer migration figures for the 2018 and 2019 tax years. They reflect migrant taxpayers who filed in another state or county between 2017 and 2018, including 8 million did so during this period. “

“California, the most populous state in the country, has lost more filers and dependents on the net than any other state.”

“Minus inbound filers, California lost 165,355 net filers and dependents between the two tax years, representing a loss of $ 8.8 billion in adjusted gross net income.”

“From July 2019 to July 2020, the Census Bureau estimated that 135,000 more people left the state than they moved in. “

California legislative analyst reported last year that for many years more Californians left for other states than moving here. According to data from the American community survey, from 2007 to 2016, approximately 5 million people moved to California from other states, while approximately 6 million left California. On the net, the state has lost 1 million inhabitants due to internal migration, or about 2.5% of its total population.

Official U.S. Census figures were released recently, showing California will lose a seat in Congress and an electoral vote due to a massive slowdown in population growth, The Globe reported in April.

Now we’re starting to see an out-migration from major cities in California to smaller towns and villages, and to the state’s rural counties – if they even choose to stay in California.

We know why California companies go to other states: Chief Executive magazine reports year after year that when CEOs across the country are polled, they name California as the worst state in the country in which to do business. California has the highest taxes in the country, one of the highest tax climates for businesses, with the Tax Foundation ranking California 49th – the second worst in the country, ahead of New Jersey.

The Place du Center continues:

“Texas was the number one destination for Californian expats, with 72,306 total exemptions leaving to get there. Neighboring Arizona saw a total of 53,476 filing exemptions from California. The two states saw their gross revenues increase by $ 3.4 billion and $ 2.2 billion, respectively. “

California’s income tax rate of 13.3% is the highest marginal tax rate in the country. And when you add up to 37% federal taxes, living in California is expensive right off the bat, and especially now that we can’t deduct state taxes from the federal government.

With the statewide lockdown still partially in place, with schools closed or partially open, and businesses closed for 15 months, add to the spike in violent crime across the state … expect to see more people reach a tipping point and make the decision to move to another state.


Source link

Taxpayers Fleeing California Bring $ 8.8 Billion in Gross Revenue to Other States

California, with its relatively large tax burden compared to other states, has seen an exodus of taxpayers in recent years and, with it, billions in gross taxable income.

State to State migration The data recently released by the Internal Revenue Service (IRS) shows that California lost about 70,534 net households, or 165,355 taxpayers and their dependents – in the years 2017-2018, fleeing people taking with them around $ 8.8 billion in adjusted gross net income.

Interstate migration flows are influenced by a number of factors, including retirement, employment opportunities and housing costs. Brandon Ristoff, political analyst at the California Policy Center, known as Place du Center that the flight of billions of dollars from California is driven by “bad state policies in economics, education and more.”

“California was a place where everyone wanted to live, but now California has become a place where people want to go,” he told the outlet.

The three main beneficiaries of the California exodus were Texas, Arizona and Nevada. The bulk of early Californians filed their taxes in Texas, with the Republican-led state recording a net inflow of 72,306 taxpayers and their dependents, and an increase in gross income of about $ 3.4 billion. dollars.

An estimated 53,476 Californians moved to Arizona, bringing with them approximately $ 2.2 billion in gross income. Nevada was home to 49,745 California taxpayers and their dependents, as well as gross income of $ 2.3 billion.

There is little agreement among experts on the important role that taxes play in migration from one state to another.

A routine Census Bureau survey asks people who travel any distance the main reason for their decision to move, including employment, housing, going to college, crime, or to join a loved one. The most popular picks in 2019-2020 (xls), ranked by popularity, were “looking for a newer / better / larger house or apartment”, followed by “new job or job transfer”, “to establish own household”, “other family reason “, Rent” and “wanted cheaper housing”.

The least popular were “natural disaster”, “climate change” and “foreclosure or eviction”.

But while taxes were not part of the Census Bureau survey, a 2018 Analysis by the Cato Institute argued that taxes influence migration, and said tax incentives could be inferred from some of the Census Bureau survey responses.

“The Census Bureau does not ask movers about taxes. But some of the 19 choices may reflect the influence of taxes. For example, people moving for housing reasons may consider the level of property taxes, as these taxes are a standard item on notices of sale of housing. Likewise, people moving for a new job may consider the effect of income tax if they move, for example, between a high-tax state like California and a non-tax-free state like California. Nevada, ”the institute wrote in the analysis.

California, with its local effective tax rate of 11.5%, ranked eighth in local and state tax burden for 2019, according to a Analysis of the Tax Foundation. Texas, on the other hand, with an effective local tax rate of 8%, ranked 47th. Arizona, with an effective local tax rate of 8.7%, ranked 45th, while Nevada, at 9.7%, ranked 29th.

According to the Tax Foundation 2021 State index of the fiscal climate for companies, California’s ranking was even darker, just behind New Jersey, which the foundation called less tax-efficient.

To follow

Tom Ozimek has extensive experience in journalism, deposit insurance, marketing and communications, and adult education. The best writing advice he’s ever heard is from Roy Peter Clark: “Hit your target” and “leave the best for last”.


Source link

California cut 165,000 taxpayers, gross income of $ 8.8 billion: IRS

VScalifornia residents of all ages and income are moving to more tax-friendly climates, and they take with them billions of dollars in annual income.

The Internal Revenue Service recently released its latest taxpayer migration figures for the 2018 and 2019 tax years. They reflect migrant taxpayers who filed in another state or county between 2017 and 2018, including 8 million l ‘did during this period.

California, the most populous state in the country, has lost more filers and dependents on the net than any other state.

Minus inbound filers, California lost 165,355 net filers and dependents between the two tax years, representing a loss of $ 8.8 billion in adjusted gross net income.

Texas was the top destination for California expats, with 72,306 total exemptions leaving to get there. Neighboring Arizona saw a total of 53,476 filing exemptions from California. The two states saw their gross revenues increase by $ 3.4 billion and $ 2.2 billion, respectively.

Despite the annual losses, the Golden State is still the most populous in the country and enjoys a diverse economy that attracts high incomes who are more likely to afford what has become some of the most expensive cities in the country to live in.

Brandon Ristoff, a political analyst at the California Policy Center, reacted to the numbers Thursday, saying the new IRS numbers reflect the exodus of residents they saw on the ground.

“Billions of dollars of this state’s wealth have been sacked year after year from our great state, because of bad California policies on the economy, education and more,” he said. “California used to be a place everyone wanted to live, but now California has become a place where people want to go.”

Local officials in states that see perennial population losses and slow growth indicate retirees are moving to better climates. Annual IRS figures show that taxpayers under 35 accounted for less than a third of all returns (28.4%) but more than half of all migrant returns (52.9%).

Although not all residents are taxpayers, US Census Bureau figures follow IRS estimates.

From July 2019 to July 2020, the Census Bureau estimated that 135,000 more people left the state than they moved in. California’s lukewarm growth will result in the loss of a member of the United States House of Representatives after a reallocation later this year. This is a first for the state.


Source link

Taxpayers Fleeing California Bring $ 8.8 Billion in Gross Revenue to Other States

California, with its relatively large tax burden compared to other states, has seen an exodus of taxpayers in recent years and, with it, billions in gross taxable income.

State to State migration The data recently published by the Internal Revenue Service (IRS) shows that California lost about 70,534 net households, or 165,355 taxpayers and their dependents – in the years 2017-2018, fleeing people taking with them around $ 8.8 billion in adjusted gross net income.

Interstate migration flows are influenced by a number of factors, including retirement, employment opportunities and housing costs. Brandon Ristoff, political analyst at the California Policy Center, known as Place du Center that the flight of billions of dollars from California is driven by “bad state policies in economics, education and more.”

“California was a place where everyone wanted to live, but now California has become a place where people want to go,” he told the outlet.

The three main beneficiaries of the California exodus were Texas, Arizona and Nevada. The bulk of early Californians filed their taxes in Texas, with the Republican-led state recording a net inflow of 72,306 taxpayers and their dependents, and an increase in gross income of about $ 3.4 billion. dollars.

An estimated 53,476 Californians moved to Arizona, bringing with them approximately $ 2.2 billion in gross income. Nevada was home to 49,745 California taxpayers and their dependents, as well as gross income of $ 2.3 billion.

There is little agreement among experts on the important role that taxes play in migration from one state to another.

A routine Census Bureau survey asks people who travel any distance the main reason for their decision to move, including employment, housing, going to college, crime, or to join a loved one. The most popular picks in 2019-2020 (xls), ranked by popularity, were “looking for a newer / better / larger house or apartment”, followed by “new job or job transfer”, “to establish own household”, “other family reason “, Rent” and “wanted cheaper housing”.

The least popular were “natural disaster”, “climate change” and “foreclosure or eviction”.

But while taxes were not part of the Census Bureau survey, a 2018 Analysis by the Cato Institute argued that taxes influence migration, and said tax incentives could be inferred from some of the Census Bureau survey responses.

“The Census Bureau does not ask movers about taxes. But some of the 19 choices may reflect the influence of taxes. For example, people who move for housing reasons may take into account the level of property taxes since these taxes are a standard item on notices of sale of housing. Likewise, people who move for a new job may consider the effect of income tax if they move, for example, between a high-tax state like California and a non-tax-free state like California. Nevada, ”the institute wrote in the analysis.

California, with its local effective tax rate of 11.5%, ranked eighth in local and state tax burden for 2019, according to a Analysis of the Tax Foundation. Texas, on the other hand, with an effective local tax rate of 8%, ranked 47th. Arizona, with an effective local tax rate of 8.7%, ranked 45th, while Nevada, at 9.7%, ranked 29th.

According to the Tax Foundation 2021 State index of the fiscal climate for companies, California’s ranking was even darker, just behind New Jersey, which the foundation called less tax-efficient.

To follow

Tom Ozimek has extensive experience in journalism, deposit insurance, marketing and communications, and adult education. The best writing advice he’s ever heard is from Roy Peter Clark: “Hit your target” and “leave the best for last”.


Source link

IRS: California Cut 165,000 Taxpayers, $ 8.8 Billion in Gross Revenue | California

(The Center Square) – California residents of all ages and income are moving to more tax-friendly climates, and they take billions of dollars in annual income with them.

The Internal Revenue Service recently released its latest taxpayer migration figures for the 2018 and 2019 tax years. They reflect migrant taxpayers who filed in another state or county between 2017 and 2018, including 8 million l ‘did during this period.

California, the most populous state in the country, has lost more filers and dependents on the net than any other state.

Minus inbound filers, California lost 165,355 net filers and dependents between the two tax years, representing a loss of $ 8.8 billion in adjusted gross net income.

Texas was the top destination for California expats, with 72,306 total exemptions leaving to get there. Neighboring Arizona saw a total of 53,476 filing exemptions from California. The two states saw their gross revenues increase by $ 3.4 billion and $ 2.2 billion, respectively.

Despite the annual losses, the Golden State is still the most populous in the country and enjoys a diverse economy that attracts high incomes who are more likely to afford what has become some of the most expensive cities in the country to live in.

Brandon Ristoff, a political analyst at the California Policy Center, reacted to the numbers Thursday, saying the new IRS numbers reflect the exodus of residents they saw on the ground.

“Billions of dollars of this state’s wealth have been sacked year after year from our great state, because of bad California policies on the economy, education and more,” he said. “California used to be a place everyone wanted to live, but now California has become a place where people want to go.”

Local officials in states that see perennial population losses and slow growth indicate retirees are moving to better climates. Annual IRS figures show that taxpayers under 35 accounted for less than a third of all returns (28.4%) but more than half of all migrant returns (52.9%).

Although not all residents are taxpayers, US Census Bureau figures follow IRS estimates.

From July 2019 to July 2020, the Census Bureau estimated that 135,000 more people left the state than they moved in. California’s lukewarm growth will result in the loss of a member of the United States House of Representatives after a reallocation later this year. This is a first for the state.


Source link

What is gross income? How it works and why it matters

What is gross income?

Gross income is the total amount of compensation a person receives on their paycheck before any deductions or taxes are taken. When you look at a paycheck stub, net income is what is shown after taxes and deductions. Net income is always less than the amount of gross income, unless there is no deduction and the person is exempt from tax. Gross income can also be referred to as pre-tax or pre-tax income.

How gross income works

Gross income usually comes from a paycheck, but it can also come from other sources. A paycheck can be a combination of hourly wage, salary, commission, and bonuses.

The other sources of gross income are:

  • Pension
  • Annuities
  • Alternative remuneration for services rendered
  • Business income
  • Capital gains
  • Dividends
  • Game wins
  • Rights on gas, oil or minerals
  • Income from paid-up debt
  • Income from a deceased person or as interest from an estate or trust
  • Interest on bank accounts, certificates of deposit (CDs), etc.
  • Pension
  • Rental income
  • Royalty fee
  • Self-employment / self-employment
  • Sell ​​merchandise online or in person
  • Tips

All of these examples are considered to be part of gross income and are often only partially taxable. Some examples of tax-free income include inheritances, municipal or state bonds, workers’ compensation benefits, and life insurance products.

Employers withhold state and federal income taxes, Medicare, and Social Security taxes from your paycheck before you receive it. For business owners, self-employed, and independent contractors / freelancers, the payment is seen as gross income and they are responsible for paying their share of taxes. The gross income of a business is calculated as gross income minus cost of goods sold (COGS) and can be referred to as gross margin or gross profit margin as a percentage.

Example of gross income

Here is an example of what an individual’s gross income looks like on a weekly basis:

  • 45 hours worked at $ 15 an hour = $ 675
  • Commission = $ 150
  • Bonus = $ 500
  • Gross income = $ 1,325

Here’s an example of what gross income might look like on an annual basis:

  • Annual salary: $ 55,000
  • Annual bonus: $ 5,000
  • Rental income: $ 10,000
  • Interest: $ 675
  • Stock dividends: $ 500
  • Secondary business income: $ 10,000
  • Sale of goods online: $ 1,300
  • Total annual gross income: $ 82,475

To determine the gross annual income of a business, here is an example:

  • Gross income: $ 250,000
  • Cost of Goods Sold: $ 200,000
  • Total annual gross business income: $ 50,000

Why understanding gross income is so important

Gross income is what is used by lenders to determine how much they will allow someone to borrow for a loan, such as a car loan or mortgage. The lender will determine the amount to lend based on the individual’s debt-to-income ratio, or DTI. The DTI is determined by dividing the monthly debt payments by the monthly gross income.

The higher a person’s DTI, the less likely a lender is to want to lend money and the higher the loan interest rate will be. Ideally, the DTI should not exceed 36%; however, some lenders will lend up to 50 percent of the DTI.

Gross income vs net income

The total amount of remuneration received is gross income, while net income is the amount remaining after deducting taxes and deductions.

Deductions can include:

  • Health insurance premiums
  • Life insurance premiums
  • Voluntary benefits (accident, illness, serious injury, disability, etc.)
  • Flexible contributions to the expense account
  • Health savings account contributions
  • Employment expenses (uniforms, union dues, meals, travel, etc.)
  • Pension contributions
  • Wage garnishments
  • Child support payments

Most deductions reduce taxable income. These are called pre-tax deductions. Other deductions, such as contributions to a Roth IRA and certain voluntary benefits, do not reduce taxable income. This is called after-tax deductions.

Net income is often referred to as take home pay or disposable income. Net income is what is left to spend and can be used for budgeting. Living expenses, bills, debt payments and other obligations should be budgeted from net income rather than gross income. Budgeting based on gross income will likely result in a reduced budget each month, as the amount required for the budget is reduced by deductions and taxes levied.

Here’s an example of why a budget shouldn’t be based on gross income without factoring in deductions and taxes. Sally has a gross monthly income of $ 4,000 and a net income of $ 3,000. She creates a budget with the amount of her gross income with total expenses equal to $ 3,500. Because Sally only brings home $ 3,000, she is missing $ 500 from the monthly budget. Sally will either have to adjust her budget to accommodate the $ 500 or find a way to increase her net income by $ 500 to cover the remaining expenses.

You can sign up for Bankrate’s myMoney tool to ccategorize your spending transactions, identify ways to reduce and improve your financial health.


Source link