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States face decision on adopting federal tax deductions | JQJO

States face decision on adopting federal tax deductions

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JEFFERSON CITY, Mo. — State legislatures will decide this year whether to adopt federal tax changes that create deductions for tips, overtime, car loans and business equipment. The U.S. Treasury urged states to conform so taxpayers receive federal reductions; states that do not conform could leave workers liable for state taxes on income untaxed. Adoption could save residents and businesses hundreds of millions annually while increasing state budget pressures due to added Medicaid and SNAP costs included in the bill signed summer. Michigan will implement a 24% wholesale cannabis tax on Jan. 1. Based on 6 articles reviewed and supporting research.

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JEFFERSON CITY, Mo. — State legislatures will decide this year whether to adopt federal tax changes that create deductions for tips, overtime, car loans and business equipment. The U.S. Treasury urged states to conform so taxpayers receive federal reductions; states that do not conform could leave workers liable for state taxes on income untaxed. Adoption could save residents and businesses hundreds of millions annually while increasing state budget pressures due to added Medicaid and SNAP costs included in the bill signed summer. Michigan will implement a 24% wholesale cannabis tax on Jan. 1. Based on 6 articles reviewed and supporting research.

Published · Published by JQJO

Published by JQJO Editorial Desk · AI assisted

More context

Timeline

  1. 1. Summer: Congress and the White House sign a bill creating federal tax deductions and program changes.
  2. 2. Post-signing: U.S. Treasury publicly encourages states to conform to federal tax changes.
  3. 3. States prepare for upcoming legislative sessions where some will opt in and others will not.
  4. 4. Retailers in Michigan report pre-January sales increases ahead of a 24% wholesale cannabis tax.
  5. 5. Jan. 1: Michigan's 24% wholesale cannabis tax takes effect and state conformity decisions influence next tax filing cycles.

Sources

JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.

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