Tax reform Feed

I am so, so sorry my dear friends in the MidAtlantic and Northeastern United States. I know you're looking at possibly more snow with the fourth nor'easter in three weeks forecast to hit your areas in a few days. Here in Central Texas and other parts of the country, however, spring has officially arrived! My Texas neighbors and I are enjoying the seasonal wildflowers. Thank you, Lady Bird Johnson! (Photo by Kay Bell) It's also the traditional time for cleaning up and clearing out your house. Some of those old and/or unused items can be tossed. Others, however, are in... Read more →

Luxury suites provide fans with more than just views of sporting events. Some companies use these special accommodations to woo or reward high-dollar customers. However, a new tax law limiting the deductibility of such entertainment could end or limit these and similar business expenditures. (AT&T Stadium luxury box photo courtesy SuiteHop via Facebook) The arenas where the NCAA's March Madness college basketball games are being played have luxury box seats where the seat owners used to entertain existing and potential high-dollar clients. I say "used to" because the Tax Cuts and Jobs Act (TCJA) that took effect this year could,... Read more →

Spring training games are wonderfully leisurely, at least for the fans. But Major League Baseball is a big business and some of its practices could be negatively affected by the new tax law. (Photo courtesy Central Florida Visitors & Convention Bureau) One of the good things about tax-filing season's timing is that it and Major League Baseball's spring training overlap a bit. That means when my head is about to explode from the hassles of taxes, I can take a break and catch some of the Boys of Summer preparations. The February and March games in Florida and Arizona are... Read more →

Are you still waiting to file your taxes because you want additional guidance from the Internal Revenue Service about the 2018 property taxes you prepaid last year? You are not alone. A group of Democratic lawmakers, some of who met with the acting head of the IRS last month on this topic, are continuing to press the agency for a final rule about this deduction that was reduced under the newly enacted Tax Cuts and Jobs Act. The latest demand for deduction clarification came earlier this week when some Democrats on the House Ways and Means Committee sent Acting IRS... Read more →

Yes, you did read my 10-part 2018 tax year inflation adjustments series last year. Thank you. Then Congress and the prez went and changed the laws, meaning the adjustments had to be adjusted. Here are some of the key inflation changes just released by the Internal Revenue Service so that they are up-to-date with the Tax Cuts and Jobs Act's provisions. The IRS just updated its previous 2018 tax year inflation adjustments based on changes in the new tax laws that took effect on Jan. 1. Remember all that 2018 tax law related inflation data that the Internal Revenue Service... Read more →

As soon as Congress began debating tax law changes in late 2017, there's been much controversy and confusion about just how much individual taxpayers would benefit. For months, it's basically been a guessing game. Now, however, we each can get a more precise idea of our tax liability under the Tax Cuts and Jobs Act (TCJA) that took effect on Jan. 1. The Internal Revenue Service has updated its online withholding calculator. The new calculator version, along with a revised Form W-4, should help taxpayers determine their proper 2018 payroll withholding amounts. In with the new, out with the old... Read more →

Shortly after the Tax Cuts and Jobs Act (TCJA) was signed into law on Dec. 22, 2017, the Republican lawmakers who wrote and fast-tracked it into law pointed to the measure's immediate effects. The most immediate indicator was the many companies that gave their workers year-end bonuses. Some corporate execs acknowledged that the law, which gives big businesses a dramatic 14 percentage points cut on their tax bills (from a 35 percent to 21 percent rate), played a part in the bonus decision. But as 2018, the first year that the tax cuts will be in effect, other companies are... Read more →

Warren Buffett, chairman of Berkshire Hathaway, meets with President Barack Obama in the Oval Office. Did this July 18, 2011, conversation lead to Obama's proposed Buffett Rule, a surtax on millionaires? (Official White House Photo by Pete Souza) If you were wise or lucky enough to get a piece of Berkshire Hathaway, company chairman Warren Buffett has some good news for you. Berkshire's gain in net worth last year was $65.3 billion. And while the Oracle of Omaha deserves kudos for many things, Buffett says the real thanks regarding Berkshire Hathaway's recent financial uptick should go to the Republicans. Specifically,... Read more →

If you've been wondering when you can take advantage on your 2017 tax return of a recently renewed tax extender, your wait could be over. The IRS announced today, Feb. 22, that it's now ready to process returns claiming three recently renewed tax breaks Surprise extenders: Congress threw the tax world for a loop earlier this month when it tacked some expired tax break onto its budget bill. The tax laws, popularly known as extenders because they are temporary and must be periodically renewed or extended, included a variety of tax breaks for businesses and individuals. Immediately following the Congressional... Read more →

I hope she said yes! (Photo by Matt via Flickr) Valentine's Day has become one of the most popular days of the year to propose. If you're anticipating popping or answering the big question at an intimate romantic dinner tonight, taxes likely won't be on your mind. But perhaps they should be. Love and money: I'm a big fan of marriage. I've been in a mostly happy one with the hubby for a looong time. (Yes, I was a child bride!) But even back then, I was a tax geek. That's why our choice of wedding date — the year... Read more →

Many medical costs are still tax deductible, but you have to clear an adjusted gross income bar. (Photo by Bjarteh via Wikipedia) If you're still young, which to me is an ever-shifting definition that now includes folks in their 40s, here's a warning. Get ready to see more doctors as you age. I know of what I blog. Although I'm young at heart, I'm finally there. My morning was full of physicians. And I'll deal with doctors again in a few weeks, both for follow-up exams and when I file my 2017 tax return. Tax breaks for medical costs: Taxes... Read more →

Anger over the new Tax Cuts and Jobs Act's limits on federal tax deductions for state and local taxes (SALT) has spilled over into 2018, with lawmakers from high-tax states still looking for ways to undo this provision. Some have petitioned the Internal Revenue Service for revised, more filer-friendly property tax guidance. Other have introduced legislation to fully restore the now-limited SALT itemized write-offs. You thought the battle over paying 2018 local property taxes so that they could be claimed on 2017 tax returns ended on Jan. 1. You were wrong. Asking IRS to reconsider: Sen. Chuck Schumer, Senate minority... Read more →

The Rev. Gilbert Caldwell (left) was part of the civil rights movement led by the Rev. Dr. Martin Luther King, Jr. (center). Click the screenshot above to watch the full CBS Sunday Morning feature on how a group of fifth-graders helped correct a 60-year-old act of discrimination against Caldwell and his wife. As a young man, the Rev. Gilbert Caldwell marched with Dr. Rev. Martin Luther King, Jr., whose life we honor and celebrate on this federal holiday. Racial discrimination was among the many wrongs King, Caldwell and other civil rights activists back then were working to right. It's a... Read more →

Homeowners are still trying to wrap their heads — and tax plans — around the many Tax Cuts and Jobs Act (TCJA) changes to the Internal Revenue Code that are related to personal real estate. There's the new limit on federal deductions for mortgage interest on future home loans, the cap on real estate taxes on your primary residence and the elimination of the write-off for interest paid on home equity loans. When the new tax law took effect on Jan. 1, the deduction on home equity lines of credit (HELOCs) or home equity loans became a thing of the... Read more →

New withholding tables are just phase one of a three-part implementation of the new tax laws' effects on workers' paychecks. Some folks will see more money each payday, but one thing won't change, says Treasury. Adjustments due to the Tax Cuts and Jobs Act changes won't stop people from overwithholding to intentionally get a big tax refund check. If you regularly get a tax refund, the new tax law and associated payroll withholding won't change that. That's the word today from the U.S. Treasury and Internal Revenue Service as the agencies released new payroll withholding tables to take the tax... Read more →

The Beverly Hilton ballroom was packed on the evening of Jan. 7 as the Hollywood Foreign Press Association handed out its annual Golden Globes statuettes for excellence in movies and television. (Photo courtesy Hollywood Foreign Press Association) I watched the Golden Globes. I am a big movie and television fan, so I wanted to see what one tiny subsection of awards voters, in this case the Hollywood Foreign Press Association, thought about recent entertainment offerings. Plus, I wanted to host Seth Meyers' take on Hollywood's harassment issue. I was thrilled to see his late-night show writers Amber Ruffin Jenny Hagel... Read more →

The gambling loss tax deduction likely won't help the country's newest multimillionaire trim his or her 2018 tax bill. The write-off, however, still will help winners of smaller amounts. Professional gamblers, though, aren't so lucky. They'll see a limitation on how they offset their taxable winnings under the Tax Cuts and Jobs Act changes. I've been touching base with my Florida friends and former neighbors and none of them won — or is admitting to winning! — last night's Mega Millions drawing. But some lucky Sunshine State resident is $450 million (more likely $281 million lump sum) richer today. Actually,... Read more →

Welcome 2018! Yes, I know we're well into day four of this brand spanking New Year. But we all get a pass on the first day to recover from our New Year Eve parties. And days two and three were consumed by looking back at what was accomplished tax-wise in 2017, looking ahead at what we can expect from taxes in 2018, chatting with fellow tax folk (OK, maybe that was just me) and dealing with scary winter weather. Bundle up, all my friends along the East Coast! Now, though, it's time to get down to tax business. Time for... Read more →

I spent most of today with my Mom, running errands with her and chauffeuring her to a couple of medical appointments. (She's fine. It was routine stuff. Thanks for asking.) But I did make time to hook up with my peeps, all the Twittering tax experts, accountants, writers, preparers, attorneys, Enrolled Agents and general tax geeks who set aside an hour at the beginning of each month to talk taxes. Specifically, we were part of the first #TaxBuzzChat of 2018, coordinated and moderated by, as the name (and my headline) indicates, As you guessed — OK, noticed in the... Read more →

Welcome to the first work day of 2018. By now you (and I) have had enough coffee (maybe, even this late in the day) to think about what the year ahead will hold for taxes. Chippy the Dog via Since my personal orbuculum is still a little blurry — I'm blaming equally the aftermath of New Year's Eve festivities and the craziness that now rules Washington, D.C. — I have only six tax-related prognostications. But even with the fuzzy focus, one thing is clear. Most of what we'll see happen in the tax world in 2018 will be related... Read more →