EPISODE 10. How to Tax Plan for Unexpected Income. Consumption Tax under the proposed “Fair tax” as compared to our current Income Tax system.

Let’s review these two tax topics today:

1)     Planning for Taxes when you receive nontraditional (non-W2) Income. This includes 1099 income, gambling winnings, and inheritances. I’ll look at examples and how much you should set aside. [:48]

2)     Also, could our tax code be revamped? A recent WSJ article discussed the “Fair Tax” plan and I break down why I think every taxpayer should be ready to debate change inside our nation’s tax system. [8:23]

Links

·        FairTax Act of 2023 https://www.congress.gov/bill/118th-congress/house-bill/25

·        WSJ Article by John Cochrane: “A Consumption Tax is the Shock Our Broken System Needs” https://www.wsj.com/articles/the-fair-tax-is-the-shock-our-broken-system-needs-income-consumption-estate-reform-economy-11675372440?mod=Searchresults_pos2&page=1

Connect with Chelsea:
Email: taxcastwithchelsea@proton.me
Leave a comment on this podcast.

**DISCLAIMER**
Taxcast with Chelsea is not legal or tax advice for your personal tax situation. My views are my own and I am only speaking from a tax practitioner’s perspective for the general understanding of tax topics. I highly recommend you engage with an experienced tax professional if you are looking for personal tax advice.
https://www.irs.gov/pub/irs-pdf/pcir230.pdf