Tax reform Feed

An historic interplanetary business trip 49 years ago prompted an astronaut to submit some travel expenses to his NASA bosses. Such claims still happen every day for more Earth-bound business travelers, but a tax break for unreimbursed work-related expenses is gone. Neil Armstrong, the first man to walk on Earth's Moon, photographs the lunar module at Tranquility Base on July 20, 1969. (Photo courtesy the National Aeronautics and Space Administration/NASA) On a hot July afternoon 39 years ago today, my brother and I were ordered to come in from our play in the West Texas sun so that we could... Read more →


As expected, states whose residents will take a major federal tax hit under the new $10,000 limit on deductions of state and local tax (SALT) payments have headed to court. Connecticut, Maryland, New York and New Jersey on Tuesday (July 17) afternoon filed a lawsuit in federal court in New York seeking to invalidate the Tax Cuts and Jobs Act's (TCJA) changes to a long-standing federal tax deduction. In this latest semi-reform of the tax code, Congress essentially gutted the value of this itemized tax deduction for, in most cases, the millions in state income and local real property payments... Read more →


The trade war with China is on. At midnight on Friday, July 6, the $34 billion tit-for-tat between the world's two largest economies took effect. The Trump Administration placed added charges mostly on Chinese aerospace products, information technology, auto parts and medical instruments. Beijing retaliated with its own tariffs primarily aimed at on American farm products, cars and crude oil. But if China doesn't blink, the White House says it could ultimately impose charges on up to $500 billion of Chinese goods. Business opposition continues: For months, potentially affected U.S. companies and the organizations that represent their economic sectors have... Read more →


Couples by Michael Lehet/Flickr CC The hubby and I basically have a pretty equal, albeit traditional gender swapped, marriage. He's more persnickety when it comes to cleaning. So he does much of those household duties, including bathrooms and whole-house vacuuming. I hate that noise, so he vacuums when I'm out; that's one of the reasons I love him! We split kitchen duties, with the person who doesn't cook dinner doing the cleanup. We collaborate on investments, deciding how much and where our money goes. As for the day-to-day expenses, I take care of making sure the bills are paid on... Read more →


Two days ago, Americans celebrated our declaration of independence from Great Britain. That July 4th revolutionary spark was ignited, of course, by our protests against taxation by King George III without adequate representation. Over the years, however, the words of our 36th president, Lyndon Baines Johnson, have proven prophetic. "The nation which had fought a revolution against taxation without representation discovered that some of its citizens weren't much happier about taxes with representation," noted my outspoken and observant fellow Texan. Still, most of us have come to realize the importance of taxes, as Supreme Court Justice Oliver Wendell Holmes, Jr.... Read more →


Has anyone really been as happy as this couple when filing their taxes? The IRS hopes the new, shorter Form 1040 will put smiles on more taxpayers' faces. Did you spend your weekend looking at the new Form 1040, which the Treasury Department and Internal Revenue Service officially unveiled on June 29? I didn't think so. That's OK. Most of us, either individual taxpayers or our tax pros helping us file, don't look at literal paper tax forms any more. We use computer software that walks us through the filing process. Still, it's worth reviewing the new form since it's... Read more →


Charles Rettig, Donald Trump's choice to head the IRS, is expected to be confirmed, despite not originally revealing that he has an ownership stake in properties in a Trump-branded Hawaiian hotel. (Photo of Trump International Hotel Waikiki via Hotels.com) The Internal Revenue Service may soon have a new commissioner, almost eight months after the last tax agency chief retired. But before Charles P. Rettig gets his new title, some lawmakers want more information from him about his ties to Donald J. Trump. Specifically, they want to know whether Rettig would maintain his independence from the man who nominated him. That... Read more →


Taking a post-vows moment. (Photo by Barney Moss via Flickr) If you were a June bride or groom, congratulations! My best wishes also go out to folks who wed in any other month. I've been a wife a long time and I highly recommend matrimony. You've got someone who, as most vows still say, will be there for all the good and bad times. Plus, you've got a built-in excuse for getting out of things you don't want to do ("So sorry, but we can't make it. The hubby has to work."). There also, as I've noted numerous times here... Read more →


U.S. Treasury Secretary Steven Mnuchin promised that this week we'd see the new, shorter and closer-to-a-postcard Form 1040. Well, the week's almost over and we're still waiting. However, I'm sure Mnuchin will keep his word and sometime today officially debut the new tax return. My faith is not so much in the Administration's top money man, as it is on the fact that I'll be out of my office and offline most of the day due to some personal business I can't reschedule. I'm good at tax timing like that. At least the proposed changes already have leaked. First came... Read more →


The new postcard-sized Form 1040 isn't nearly as pretty as the vintage Austin, Texas, postcard, reproduced as a mural in the Lone Star State's capital city. The tax postcard also isn't nearly as simple as its smaller size — or the Republicans who've long promised it — would have taxpayers believe. Image courtesy Roadhouse Relics Facebook/Instagram The good news about the new postcard-sized Form 1040 is that it is, as promised, smaller. The bad news is that in condensing the form, the Internal Revenue Service removed many popular above-the-line deductions that survived the actual new tax law itself. That's the... Read more →


The world — OK, U.S. tax world — is anxiously anticipating the shrinkage (yeah, I'm now replaying that Seinfeld episode in my head, too; sorry) of Form 1040. The Treasury Secretary last week promised that by the time the 2019 tax filing season rolls around, the longest tax return, which is filed by 68 percent of taxpayers, will be substantially smaller. The goal is the long-promised size of a postcard. But another Internal Revenue Service form that affects even more folks already has been revised. The IRS earlier this month released a draft version of Form W-4 for the 2019... Read more →


On June 20, Republican leaders, including Ways and Means Chairman Kevin Brady of Texas speaking, celebrated the six-month anniversary of House passage of their tax bill. (Screenshot from Speaker.gov video; click image to view full event) When the Republicans finally got the tax cuts they wanted in the Tax Cuts and Jobs Act last year, they viewed the changes as not only good tax policy but also a good political move. The debate continues as to the efficacy of the changes as far as tax policy, but there's more of a consensus on its political possibility. And the news is... Read more →


Speaker Paul Ryan touts postcard tax return possibilities after House passage of tax reform legislation last November. (Screen shot from Speaker.gov YouTube video) Every year the Internal Revenue Service makes tweaks to tax returns. Often it's simply updating annual inflation adjusted amounts. Other times it's adding or subtracting a line due to law changes. But for 2018's filing material, there will be large-scale form alterations thanks to the major changes made by the Tax Cuts and Jobs Act (TCJA). Among the new law's modifications for the 2018 tax year will be the actual size of the oldest of the tax... Read more →


Kilauea lava flow from U.S. Geological Survey via Giphy.com Hawaiians got some relatively good news this week in connection with the continuing lava flow from Mount Kilauea. The volcano is continuing to spew potentially deadly gases and pour flaming lava across a growing southeastern section of the 50th state's Big Island. The eruption, which started May 3, also is still producing explosions and earthquakes. Now, however, the catastrophe has been declared a major disaster by the White House. That is good tax news for affected residents, which is everyone on the state's largest island, also named Hawaii, as is the... Read more →


June generally is a good time to review your tax situation and make moves while there are months for them to make a difference to your upcoming tax bill. That's particularly true this year, what with the Tax Cuts and Jobs Act (TCJA) changes in full force. Unfortunately, questions remain as to just how the new tax law changes will affect some folks. Business change uncertainty: Businesses in particular are among the taxpayers still unsure about TCJA provisions. Many are waiting for clarification of the new law's elimination of business entertainment expenses. The tax community is divided as to whether... Read more →


Fathers Day Happy Fathers Day GIF from Fathersday GIFs Happiest of days to all the dads out there. And thank you Sonora Dodd. Dodd was raised by her father after her mother's death during childbirth. While listening to a sermon at church on Mother's Day, Dodd thought about all her father had done for her and her siblings and decided fathers should have a day, too. Because Dodd's father was born in June, she encouraged churches in Spokane, Washington, where she was living, to honor fathers that month. The first Father's Day was celebrated in Spokane in on June 19,... Read more →


It's a cliché because it's true. All politics is local. That applies to taxes, too. Whether you love or hate a tax law depends on how much it helps or hurts you personally. That's why this weekend's Saturday Shout Out goes to the Tax Foundation's interactive map that lets you see average 2018 tax cuts in your congressional district. If you want to go beyond your locality, you can check out the dollar differences on average make to taxpayers across the country. As you can see on the Washington, D.C.-based tax policy nonprofit's map reproduced below, you simply enter your... Read more →


Our home's celebration of the 2018 Stanley Cup Champion Washington Capitals. It's champions day at our house! I spent the morning watching the Washington Capitals, the new National Hockey League champions, parade down Constitution Avenue showing the Stanley Cup to their long-suffering fans. Then I switched over to watch the Golden State Warriors, the National Basketball Association's back-to-back champs, celebrate with their fans along the downtown Oakland parade route. It's fitting that the latest major league champs on both U.S. coasts had their parades today. Their festivities come on the heels of expanded sports betting across the country. N.J. sports... Read more →


Donald J. Trump arrived in Quebec for the G-7 meeting with some controversial ideas (notably, letting Russia back in the club) and he left the international meeting the same way. Tweeting from Air Force One as he headed to Singapore to meet with North Korea's Kim Jung Un, Trump gave notice he's ready to escalate trade disagreements with Canada by imposing automobile tariffs. The initial reaction has been what such a move could actually mean to the U.S. automotive industry. Tax cut tariff costs: But auto tariffs also could undermine any gains from the TCJA, according to a Washington, D.C.-based... Read more →


The Republican's new tax law is expected to be the focus of the coming midterm elections. GOP candidates are telling taxpayers that they — or most of them, anyway — will owe the U.S. Treasury less in 2018 thanks to the Tax Cuts and Jobs Act (TCJA). Democrats running for office, however, argue that any individual tax cuts under the new law are relatively small and, unless their colleagues across the aisle can change things in the next few months, are temporary. That ending date is Dec. 31, 2025. So who's telling the truth? It depends — wait for it... Read more →