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Tag Archive for Tax Reform

Tax Reform: Big Changes To 529 College Savings Plans

Charles Woodson - Tax Reform And Changes To College Savings Plans

Tax reform added some new taxpayer-advantageous changes to college savings plans. These plans are also known as qualified tuition programs (QTPs) or Sec. 529 plans, named after the part of the Internal Revenue Code that established them.

Background: Sec. 529 plans allow taxpayers to put away larger amounts of money than other tax-advantaged education savings plans do, limited only by the contributor’s gift tax concerns and the contribution limits of the intended plan. There are no limits on the number of contributors, and there are no income or age limitations. The maximum amount that can be contributed per beneficiary (the intended student) is based on the projected cost of college education and will vary between the states’ plans. Some states base their maximum on the projected costs of an in-state four-year education, but others use the cost of the most expensive schools in the U.S., including graduate studies. Most have limits in excess of $200,000, with some topping $370,000. Generally, additional contributions cannot be made once an account reaches the state’s maximum level, but that doesn’t prevent the account from continuing to grow.

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IRS To Highlight Tax Reform Changes Affecting Small Businesses

IRS to highlight tax reform changes affecting small businesses

Small business owners, self-employed should plan now for new changes

With just a few months left in tax year 2018, the Internal Revenue Service today urges small business owners to learn about how the new tax law changes may affect them.

The Tax Cuts and Jobs Act, passed in December 2017, made tax law changes that will affect virtually every business and individual in 2018 and the years ahead. Among other things, the new law may change their tax rates and impact the quarterly estimated tax payments they are required to make during the year. Read more

Will You Get A Refund Or Owe For 2018?

Chuck Woodson Will You Get A Refund Or Owe For 2018?

As a result of tax reform, most taxpayers will be paying less tax for 2018 than they did in 2017. But that may not translate into a larger refund. Your refund is the amount that your pre-payments (withheld income tax, estimated tax payments, and certain credits) exceed your tax liability, and if the pre-payment also got reduced, you could be in for an unpleasant surprise at tax time.  Read more

IRS Issues Guidance On Tax Cuts And Jobs Act Changes On Business Expense Deductions For Meals, Entertainment

IRS Issues Guidance On Tax Cuts And Jobs Act Changes

The Internal Revenue Service issued guidance today on the business expense deduction for meals and entertainment following law changes in the Tax Cuts and Jobs Act (TCJA).

The 2017 TCJA eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation. Read more

Congressional Record – Tax Cuts And Jobs Act (Part 20)

Congress, Tax Cuts And Jobs Act, tax reform

(This post directly follows the previous post which now focuses on discussion and debate of the new tax bill.)

Mr. LARSON of Connecticut: Mr. Speaker, I yield to the gentlewoman from Texas (Ms. Jackson Lee) for a unanimous consent request.(Ms. JACKSON LEE asked and was given permission to revise and extend her remarks.)

Ms. JACKSON LEE: Mr. Speaker, I include in the Record The Washington Post op-ed, “The Republican tax plan’s five worst dangers,” by Secretary Rubin, dated November 15, 2017

[From the Washington Post, Nov. 15, 2017]

The Republican Tax Plan’s Five Worst Dangers

(By Robert Rubin) Read more

Congressional Record – Tax Cuts And Jobs Act (Part 19)

Congress, Tax Cuts And Jobs Act, tax reform

(This post directly follows the previous post which now focuses on discussion and debate of the new tax bill.)

Mr. BRADY of Texas: Mr. Speaker, I reserve the balance of my time.

Mr. LARSON of Connecticut: Mr. Speaker, I yield 1 minute to the gentlewoman from Texas (Ms. Jackson Lee), the voice of Houston.

Ms. JACKSON LEE: Mr. Speaker, this is not the American Dream tax plan. This is the American nightmare, a tax scam of the worst proportion. Read more

Hardship Exemption Rules For Not Having Health Insurance Eased

Chuck Woodson, tax penalties, Healthcare, The Tax Cuts and Jobs Act, tax reform

The Affordable Care Act (Obamacare) included a “shared responsibility payment,” which in reality is a penalty for not having health insurance. Along with this penalty came a whole slew of exemptions from the penalty, including some that were designated as “hardship” exemptions. However, the hardship relief from the penalty required pre-approval from the government health insurance marketplace, which required the applicant to provide documentary evidence of the hardship. Once approved, the applicant was issued an exemption certificate number (ECN) that needed to be included on the individual’s tax return to avoid the penalty.  Read more

Congressional Record – Tax Cuts And Jobs Act (Part 18)

Congress, Tax Cuts And Jobs Act

(This post directly follows the previous post which now focuses on discussion and debate of the new tax bill.)

Mr. LARSON of Connecticut: Mr. Speaker, I yield the gentleman from New York an additional 15 seconds.

Mr. CROWLEY: Mr. Speaker, on behalf of hardworking Americans throughout this country, I say, vote “no” on H.R. 1, vote “no” on H.R. 1 percent.

Mr. BRADY of Texas: Mr. Speaker, I yield 1 minute to the gentleman from Kansas (Mr. Estes).

Mr. ESTES of Kansas: Mr. Speaker, I thank Chairman Brady for his efforts to get this tax reform bill done.

Our outdated and uncompetitive Tax Code has led to slow economic growth over the past decade in America. Today, we are taking an important step to fix that. The Tax Cuts and Jobs Act will reform the Tax Code and help foster economic growth. Read more

New Employer Tax Credit For Paid Family And Medical Leave

Tax Credit, Paid medical leave, Paid Family Leave, tax reform

Today the IRS announced that eligible employers who provide paid family and medical leave to their employees may qualify for a new business credit for tax years 2018 and 2019.

In addition, eligible employers who set up qualifying paid family leave programs or amend existing programs by Dec. 31, 2018, will be eligible to claim the employer credit for paid family and medical leave, retroactive to the beginning of the employer’s 2018 tax year, for qualifying leave already provided. Read more

Congressional Record – Tax Cuts And Jobs Act (Part 15)

Tax Reform, Tax Code, House of Representatives

(This is a direct response to the previous post which asked to oppose the language effectively repealing the Johnson Amendment for houses of worship)

Mr. NEAL: Mr. Speaker, I yield 2 minutes to the gentleman from Kentucky (Mr. Yarmuth), the ranking member of the Budget Committee, and one of the most knowledgeable Members of the House.

Mr. YARMUTH: Mr. Speaker, I appreciate my friend yielding time.Mr. Speaker, this is a horror show today, this is a horror showdebate, and this is a horror show process, but it is a disaster for the American people. Read more

The Progressive, Creditable Implied Purchases Tax

A MODEST, SELF-HELP PROPOSAL ENABLING INDIVIDUAL STATES TO ADDRESS THE REMOTE SELLER TAX PROBLEM AND MUCH MORE

As the States’ and any Congressional responses to the United States Supreme Court’s 5-4 ruling in the remote seller sales tax enforcement case of South Dakota v. Wayfair, Inc., et al, 585 U.S.___ (2018) begin to emerge, this is to describe a simple proposal by which any individual state can effectively enforce its use tax on remote sales, mitigate the related compliance concerns of remote sellers AND enable its pursuit of other major state tax policy objectives. Read more

Tax Reform 2.0 Is In The Works

Charles Woodson - Tax Reform Is In The Works

The dust has not yet settled from the Tax Cuts and Jobs Act (TCJA), passed into law in December 2017, and the House Ways and Means Committee is already considering another round of tax changes. The committee chair, Kevin Brady, Republican from Texas, wants to include input from stakeholders such as business groups, think tanks and other relevant organizations. Historically, major tax reforms have been decades apart, so the committee chair is looking for another approach to the way Washington deals with tax policy.

As with all tax legislation, it begins with talking points. From what we can gather, it appears the focus of Tax Reform 2.0 will include:

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