Newsletters
Qualified Business Income Deduction in Oklahoma
Posted April 2019
Our newsletters have previously discussed Section 199A – the new 20% qualified business income (QBI) deduction allowed by the Tax and Jobs Cuts Act (TJCA) – as it relates to the Federal deduction on an individual tax return. There has been recent conversation regarding the application of Section 199A on Oklahoma tax returns.
Deduction of Oklahoma Gambling Losses
Posted April 2019
Oklahoma HB 2667 was passed in the House on March 7 by a vote of 83-16 and is currently in the Senate awaiting action. If passed, gambling losses would be exempt from the Oklahoma itemized deduction limitation ($17,000) in the same manner as medical expenses and charitable contributions. Essentially, gambling losses would return to being deductible to the extent of winnings. The current language of the bill would apply the rule retroactively to tax year 2018.
IRS Expands Penalty Relief if Payments Fell Short in 2018
Posted April 2019
The IRS recently provided additional, expanded penalty relief to individual taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year by lowering to 80 percent the threshold required to qualify for this relief. The IRS is now waiving the estimated tax penalty for any taxpayer who paid at least 80 percent of their total 2018 tax liability during the year through federal income tax withholding, quarterly estimated tax payments, or a combination of the two.
Federal Court of Appeals Upholds Clergy Housing Allowance
Posted April 2019
On March 15, 2019, the Seventh Circuit Court of Appeals overturned a 2017 decision by a Wisconsin district court which had declared the housing allowance unconstitutional. Over 300,000 ministers in the US enjoy the benefit of a tax-free housing allowance, and the ruling by the Wisconsin court generated obvious concern.