Treasury’s New Pass-Through Rules Double Down On The Deduction’s Regressivity

Treasury’s New Pass-Through Rules Double Down On The Deduction’s Regressivity

The Tax Cuts and Jobs Act (TCJA) contains a special 20-percent individual income tax deduction for owners of pass-through businesses that was always going to disproportionately benefit the wealthy. The Joint Committee on Taxation projected that half the benefits of the provisions would go to millionaires and only a small fraction would help taxpayers making less than $200,000. But now Treasury has proposed new rules to fill in key details for the pass-through deduction, which make it harder for moderate-income employees to lower their taxes by becoming a contractor while making it easier for many high-income owners of service businesses to shrink their tax bill.

Key tax change affects taxpayers with dependents; IRS urges workers to check withholding

Key tax change affects taxpayers with dependents; IRS urges workers to check withholding

The Internal Revenue Service urges taxpayers who support dependents who can’t be claimed for the Child Tax Credit to do a paycheck checkup soon. The IRS Withholding Calculator can help these taxpayers make sure they have the right amount of tax taken out of their pay.

IRS Announces 130,000 Combat-Injured Veterans May Be Owed Tax Refunds

IRS Announces 130,000 Combat-Injured Veterans May Be Owed Tax Refunds

The Internal Revenue Service (IRS) has announced that tax relief is available - retroactively - for veterans who received disability severance pay after January 17, 1991, and included that amount as income on their taxes. Approximately 130,000 separated military members who received disability severance pay as income may be affected.

Got a big tax refund? Use IRS Withholding Calculator to boost take-home pay in 2018

Got a big tax refund? Use IRS Withholding Calculator to boost take-home pay in 2018

Taxpayers who received large refunds earlier this year may be able to get more of their money included in their paychecks during the rest of 2018 by using the Withholding Calculator on IRS.gov. According to the Internal Revenue Service, most taxpayers – more than seven out of 10 –  receive refunds averaging around $2,800. Typically, taxpayers who receive large refunds could receive more of their money throughout the year, rather than waiting until they file their tax return after the end of the year.