Non-Filing Taxpayers and State Tax Cuts
Almost a million people left about a billion dollars in tax refunds on the table in 2020. The IRS estimates that 940,000 people who did not file tax returns in 2020 are due to receive refunds. They just have to file by May 17 of this year. The typical refund could be about $900, according to IRS estimates.
Crypto holders can preview their future tax form. The IRS previewed the draft Form 1099-DA that will allow crypto currency holders to determine the taxable gains or losses when brokered digital assets change hands. This form may again change depending on the final outcome of the proposed tax rule, which may come later this year.
A flat income tax plan may soon land on Iowa Gov. Reynolds’ desk. Legislation that may soon pass in the Iowa House would levy a 3.8 percent flat income tax next year. The bill accelerates already-planned decreases to the tax rate passed in 2022. Under current law Iowa’s top individual income tax rate is 5.7 percent and is set to drop to 4.82 percent next year under current law.
Georgians will owe less in income taxes and could cap their property taxes this year. Republican Gov. Brian Kemp signed a bill last week that cuts income taxes by $700 million on residents and businesses. Georgia voters in a November ballot measure will decide whether to limit increases in a home’s value, as assessed for property tax purposes, to the rate of inflation each year, barring a local government opting out by March 1, 2025.
Texas Comptroller recommends $61 million in tax breaks for ethanol-to-jet fuel plant. Summit Agricultural Group hopes to build the $200 million ethanol-to-jet fuel plan with support from Texas’ economic development incentives program. It’s the first company to apply for the help available through the state’s new Jobs Energy, Technology, and Innovation program, reports Bloomberg Tax (paywall). That program replaced a long-standing but controversial economic development program known as Chapter 13.
The Daily Deduction will return to its regular schedule on April 29, when Congress returns to session.
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