Tax Refund

When filing jointly, the first name listed could mean more than you think. According to new research from the University of Michigan and the US Treasury, the first listed name on a joint return can say a great deal about a couple’s beliefs and attitudes. The study finds that on joint tax returns filed in 2020 by heterosexual couples, men are listed before women 88 percent of the time – a higher share than would be expected if couples just listed the higher earner first. Traditional gender expectations may be outweighing the role of money in some cases, said the University of Michigan’s Joel Slemrod. The IRS cautioned that taxpayers who list names in a different order than the prior year could have their return processing delayed.

Nonprofit hospitals may face more scrutiny, given their tax-exempt status. CNN reports on a Pennsylvania school district that appealed a local hospital’s nonprofit status, since the hospital’s conversion to a tax-exempt nonprofit entity meant the school district lost $900,000 annually. A Pennsylvania state court struck down the hospital’s property tax exemption, and nonprofit hospitals have taken notice. Johns Hopkins University’s Ge Bai, a health policy expert, told CNN, “I don’t think hospitals will lose tax exemptions in the short run, [but] there will likely be more pressure from the public and policymakers for hospitals to provide more community benefit.”

Minnesota made a $352 million mistake in its new tax law. A drafting error allowed outdated standard deduction rates into state law for the 2024 tax year. As a result, married joint filers would be able to deduct $24,400 instead of $27,650 – an amount adjusted for inflation – while single filers would see a $12,200 deduction instead of $13,285. Absent a fix, the error would cost income taxpayers $352 million a year. Revenue Commissioner Paul Marquart and tax committee chairs in the General Assembly say they’re working on a correction.

Wisconsin Gov. Evers open to tax cut negations. Democratic Gov. Tony Evers recently used his line-item veto powers to block a tax cut passed by the Republican-led legislature. He has now expressed openness to a more comprehensive tax cut proposal, emphasizing the importance of a reciprocal agreement.  

Texas House and Senate reach property tax relief agreement. Their $18 billion compromise would direct $12 billion to reduce the school property tax rate for homeowners and business properties. It would also increase the homestead exemption and create a pilot program to reduce taxes on certain residential and business properties. Republican Gov. Greg Abbott says he looks forward to signing the measure into law.


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 *