A bill being introduced to restore job expenses for employees and even better, as an above the line deduction.
See the link: New Bill for Job Expense Deductions
The only problem with this is that all tax bills are required to start in the House, specifically in the Ways and Means committee. So ……. we will see
The Federal tax overhaul changed the landscape for many state returns as they pull for items on the federal return. NY will now allow State and Local Tax (SALT) deductions in full on the NY return even if the taxpayer takes the standard deduction on the Federal return
In addition, Alimony and Moving expenses will continue to be allowed at the state level
Time is required to properly digest the complex US proposals (after all, the US Treasury itself has not yet released regulations), but it will be very important for our government to acknowledge the proposals’ impact on Canada and to indicate a path forward. Canada has many advantages. Perhaps we have relied too much, for too many years, on our competitive tax rate relative to the United States’. Now that we no longer enjoy the tax rate advantage, a new course needs to be plotted.
Below is linked a joint statement from the parties in one of the OT suits circulating in the healthcare staffing industry. It contains both side’s opinion as to what disclosures should be required for participants in the class action.
Note the issue raised by the defendant that the participants in class action suits COULD be subject to more tax than they would benefit should the plaintiffs prevail. Specifically, if the per diems are allowed to be included in the OT base, the per diems could be taxable should the IRS seek to pursue that determination.
Those “back taxes” would potentially be more than the additional amount of pay gained from the extra OT.
2017.11.07 JOINT STATEMENT RE CONTENT OF NOTICES TO CLASS AND
2-9-18
Last night when Congress averted the government shutdown, they passed a tax extenders package that is retroactive to the 2017 tax year.
Among the most common deductions for our clients that were reinstated:
There are plenty of others that are less common. We have already pulled returns that have been filed and will alert clients for amendments and those still in process have been flagged!
Fun Fun!
While tax reform has changed the Federal returns, state returns generally start with some number from the Federal return. This is changing the meaning of “taxable income” at the state level.
Here is a good WSJ article on this
