Income tax refund awaited

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• Facebook • Twitter • Email • Email • BOSTON (AP) — The Massachusetts Senate unveiled a long-awaited $590 million tax relief proposal Thursday as the Democratic-led Senate and House, and Democratic Gov. Maura Healey, work to come up with a final tax-cutting plan. The Senate proposal would increase the rental deduction cap from $3,000 to $4,000, increase the child and dependent tax credit from $180 to $310 per child or dependent, bump up the earned income tax credit from 30% to 40% of the federal credit and double the maximum senior circuit breaker credit from $1,200 to $2,400. The Senate, like the House, would also raise the state’s estate tax threshold from $1 million to $2 million. Healey, who released Massachusetts is one of just 12 states with an estate tax. Senate President Karen Spilka described the chamber’s budget proposal as “progressive, smart, sustainable and permanent.” “Our tax relief package intentionally targets housing affordability so we can not only maintain our economic competitiveness but ensure our residents can stay where they want to work, live, raise families and pursue their dreams,” she said in a written statement. In April, Massachusetts House lawmakers overwhelmingly approved their own The House proposal would also make changes to the 1986 law designed to limit state tax revenue growth and return any excess to taxpayers. The law triggered nearly $3 billion in refunds last year. It will be up to the House and Senate to come up with a compromise ...

Enter some simple questions about your situation, and TaxCaster will estimate your tax refund amount, or how much you may owe to the IRS. Our tax calculator stays up to date with the latest tax laws, so you can be confident the calculations are current. The results are only estimates however, as various other factors can impact your tax outcome. When you file with TurboTax, we’ll guide you step by step to ensure your taxes are done accurately. The standard deduction is a set amount based on your filing status. Itemized deductions are ones you can claim based on your yearly expenses. It makes sense to choose whichever will yield you the greatest tax break, but if you choose to itemize deductions, you’ll need to keep track of your expenses and have receipts or documentation ready.

Taxes are a big part of running a business, and they can take a toll on your bank account. But sometimes, you can receive an income tax refund for your business. If you do, you need to know how to record a journal entry for income tax refund in your books. Should your business make a journal entry for income tax refund? The IRS or state issues a tax refund if you overpay on your taxes. Refunds only occur when you remit more taxes to the government than you or your business owe. But, do you need to record an income tax refund in your business accounting books? The answer: It depends. Your business structure determines if you need to record a journal entry for an income tax refund. Only certain business entities need to record journal entries for income tax refunds. Business entities that do not need to record an income tax refund as a journal entry include: • S corporations • Sole proprietorships • Partnerships • LLCs* S Corps, partnerships, and sole proprietorships all have pass-through taxation . With pass-through taxation, the owner includes business income on their personal income tax return. The business does not directly pay the taxes, and the owner receives any refunds rather than the company. Because the owner receives a refund and not the business, do not record the journal entry in the business’s books. *If you have an LLC , you may file your taxes as an S Corp, sole proprietorship, partnership, or C Corp. So if you have an LLC, how you are taxed determines if you...