Corporations saw significant federal tax code changes with TCJA
and shifts in state tax collections could be related.
"Cleco has been accruing the TCJA
savings and preparing to refund our customers," said Shane Hilton, president of Cleco Power.
This article analyzes the effect of the TCJA
on state individual income taxes.
Before the TCJA
took effect in 2018, people who itemized deductions could deduct miscellaneous itemized deductions that exceeded 2% of their adjusted gross income (AGI).
also lowered the tax withholding rates that normally apply to bonuses, back wages, payments for accumulated leave and other supplemental wages.
Over the years, Congress has modified the marriage tax penalty through various tax reforms, including, most recently, the TCJA
. However, since 1913, the federal income tax burden of a dual-earner couple generally increases if they marry, and this penalty is greater if the couple have dependent children.
For a detailed discussion of the issues in this area, see "Tax Clinic: Tax Accounting for Businesses After the TCJA
: Some Widely Applicable and Lesser-Known Changes" in the June 2019 issue of The Tax Adviser.
Some of the things that affected many taxpayers as a result of TCJA
included lower tax rates, increased standard deductions, elimination of personal exemptions, increased child tax credit and limited or eliminated deductions.
Small-Business Accounting Method Simplification: The TCJA
raised the threshold to $25 million for when a small business can opt to use the cash basis of accounting over the accrual method.
does not clarify the definition of gambling, and without additional guidance, there is uncertainty as to how fantasy income and expenses should be reported.
The high number of last-minute changes that were inserted into the TCJA
, along with a lag in critical technical interpretations, or guidance, from the IRS, "meant we were filing a record number of extensions while issues get sorted out," he added.