A bigger tax deduction for teachers? Ohio Sen. Sherrod Brown and Maryland Rep. Anthony Brown will introduce a bill to increase the tax deduction teachers can take for out-of-pocket classroom supplies from $250 to $1,000 and index the deduction to inflation. Brown hopes to attach the plan to a larger tax bill and cited US Department of Education research showing 94 percent of public school teachers spend their own money on classroom supplies. Roughly 10 percent spend more than $1,000 a year.
Mississippi Gov. Tate Reeves signs biggest tax cut in state history. The bill will return over $500 million to state residents. Mississippi will eliminate the 4 percent income tax bracket next year. In the following three years, the 5 percent bracket will decrease to 4 percent. After the first year, the new law will increase the state standard deduction to $18,300 for singles and $36,600 for married couples filing jointly.
Connecticut advances a new income tax credit for low-income families. The House Finance Committee reported a bill to establish a $600-per-child tax credit, which would comply with federal restrictions on how much tax relief Connecticut can offer after accepting federal pandemic aid. The credit would be phased in after federal pandemic aid expires or two years from now.
New Mexico will give election-year tax rebates to offset inflation. Individual adults will receive $500 (or $1,000 per two-adult household) to make up for fuel price increases and other consumer inflation. The tax rebates will cost $700 million. The rebates passed the legislature with bipartisan support.
Tune in today at noon for TPC’s Prescription with Ellen Hughes-Cromwick. A senior resident fellow at Third Way, she’ll talk with TPC’s Howard Gleckman about policy responses to rising energy prices. What impact would suspending the gas tax or adopting a “windfall profits” tax on oil companies have on a transition to cleaner energy? Register and tune in here.
Most cryptocurrency investors aren’t ready to file their taxes. A recent survey by CoinTracker shows that as of March 27, about 96 percent of digital currency investors had yet to submit their federal income tax returns, and 75 percent were not ready to do so. One reason: There may be widespread ignorance about how digital currency is taxed.
As for all tax filers, there’s something you should know. TPC’s Tax Hound asked ten TPC experts what every tax filer should know about tax policy. The catch: Unlike a tax return, their answers had to fit on a postcard.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at [email protected].
