Tax Refund


The Senate is on track to pass the latest stopgap bill. It cleared a procedural vote last night on a continuing resolution that will prevent a government shutdown otherwise set to start on Friday at midnight. Senate Majority Leader Chuck Schumer (D-NY) expressed confidence that lawmakers can wrap up work on the measure no later than Thursday. “The key to finishing our work this week will be bipartisan cooperation in both chambers,” Schumer said. “You can’t pass these bills without support from Republicans and Democrats in both the House and the Senate.”  

A tax package is released, but can lawmakers close the deal? Senate Finance Chair Ron Wyden (D-OR) and House Ways & Means Chair Jason Smith (R-MO) released a $78 billion legislative package that would temporarily expand the Child Tax Credit and low-income housing tax credit, while also renewing some business tax incentives that had phased out under the Tax Cuts and Jobs Act. The legislation will not be attached to the stopgap spending bill released over the weekend. Wyden and Smith continue efforts to build bipartisan support for the package. 

The US Supreme Court turned down a request to review Washington state’s capital gains tax case. The high court said it will not hear Quinn v. Washington, the challenge to the state’s 7 percent tax on profits gained from the sale or exchange of stocks, bonds or other investments or tangible assets exceeding $250,000. The tax generated $900 million in revenue in its first year. 

New York appeals panel says Time Warner must pay back taxes. The case before the state’s Division of Tax Appeals involved payments for the Federal Universal Service Fund (FUSF) received by Time Warner customers made between March 2014 and February 2017. TaxNotes reports (paywall) Time Warner had not remitted the taxes on those payments. Time Warner was determined to owe approximately $7.3 million in additional sales and use taxes, plus interest, based on those FUSF payments. 

Some Arizona state tax refunds will be subject to federal income tax. Those who receive the Arizona Families Tax Rebate will have to report the rebate on their federal income taxes. The rebate is not subject to Arizona’s income tax. 

 

For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at [email protected].

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *