The 2020 tax season is not too far off. That means that Connecticut residents only have a short time left to address some issues so that there are not problems when they eventually file their income tax returns. What are some of the common problems people are expected to deal with this coming tax season if they choose not to take action to address specific issues now?
Anyone who keeps up on the news has likely read or heard about the Setting Every Community Up for Retirement Act that recently passed the House vote. The Senate is set to vote on it, and it is expected to pass without issue. The name of the bill certainly sounds like it is meant to help people, but will it? In the end, it will affect how much people in Connecticut and elsewhere have to pay in taxes.
For a long time, taxpayers in Connecticut have been able to fully deduct state and municipal tax payments on their federal returns. Law changes, which took effect in 2017, ended that tax benefit for the time being. As such, the state of Connecticut created a workaround, which allowed residents to make charitable contributions to local organizations so they can claim higher deductions on their federal returns. While this seems a reasonable solution to the problem, the Internal Revenue Service responded by saying such contributions could not be deducted.
On July 1, 2019, a bill was signed by the president that is intended to protect taxpayers. Taxpayer rights are not new, but many felt that changes to these rights were long overdue. How will the Taxpayer First Act of 2019 benefit Connecticut residents?
Connecticut lawmakers just recently agreed on a two-year budget plan. To combat the significant budget deficit, a mansion tax is set to be implemented in the year 2023. It is expected to bring in over $6 million a year for the state. How exactly will the mansion tax work?
While there are a good number of people in the United States who complete and file their taxes on their own every year, there are many more who trust so-called professionals to help them. Having a good tax preparer matters if one chooses to go this route. Here are few tips that may help Connecticut residents determine if their tax preparers or potential tax preparers are right for the job.
Connecticut is in the midst of a financial crisis. Some believe that raising taxes on the wealthiest residents would solve this problem. However, some worry that doing so will only cause these residents to pack up and move elsewhere. A plan to increase the tax rates of wealthy residents has been proposed. Only time will tell if it will be put into effect.
There are a lot of businesses in the state of Connecticut that claim to be non-profit. Non-profit can mean a number of things, but here it will be used to specifically discuss the income tax benefits offered to charitable organizations. What types of charitable organization can qualify for tax exemptions, and how can they obtain that benefit?
Now more than ever before, more Connecticut residents are gig workers. Gig workers are considered small business owners. They work for themselves by taking on business opportunities offered through larger companies -- such as Uber and Airbnb, among a number of others. Being a gig worker can be a good deal and offer good money, but it can also cause some income tax problems.
When tax season rolls around, most people in Connecticut and elsewhere try to file their taxes themselves or turn to accountants for assistance. There are some tax situations, though, that may require one to seek out a tax attorney for help. What situations would be best handled by an attorney rather than an accountant?