On November 16, the U.S. House of Representatives passed its version of the Tax Cuts and Jobs Act. That same day, the Senate Finance Committee approved its version. Both are based on the Trump administration’s plan presented on September 27, 2017.
One of the most often asked questions by taxpayers is, “When will I get my refund?” While in most cases people realize their refund will come a few weeks after the return has been filed, some aspects of filing for and getting refunds and/or credits are not so intuitive. Taxpayers may discover an error on their return that causes an overpayment. And why many overpayments are conceded by the IRS and credited or refunded automatically, at other times, the taxpayer must file a claim for credit or refund..
Below are some commonly asked questions on tax reform:
Will Congress actually pass tax legislation?
Yes. Failure isn’t an option for Republicans in Congress who, after failing to repeal Obamacare, face pressure to deliver on their promise to cut taxes.
President Trump and Republican leaders have positioned their sweeping tax rewrite as a way to cut taxes on the middle class. But some top officials are now saying the plan may not benefit everyone in that income group.
The IRS announced on Thursday that the limit on elective deferral for contributions to 401(k) plans, 403(b) plans, most 457 plans, and the federal government’s Thrift Savings Plan will increase from $18,000 in 2017 to $18,500 for 2018. However, the catch-up contribution limit for those 50 and older remains $6,000. Most other inflation-adjusted amounts related to pensions increased from 2017 to 2018.