TAXES

Finance planning.
Ken Teegardin / Creative Commons / flickr.com/photos/teegardin

While President Trump's federal tax changes have been associated with some companies paying out big bonuses, much of its impact on residents, communities and states is still unclear. State House News Service reporter Matt Murphy tells us whether lawmakers in Boston have a good grasp of the tax bill's implications.

Cash.
Ed Ivanushkin / Creative Commons / flickr.com/photos/barsen

Tax collections in December left Massachusetts flush with an unbudgeted windfall of cash, and have exceeded estimates by $728 million. 

The week after Christmas is usually a short and slow one for town officials in New Paltz, N.Y. — but not this time.

"When we opened town hall Wednesday we had almost 100 voicemails from people inquiring about how they could prepay their taxes," says Daniel Torres, the town's deputy supervisor.

And the phones kept ringing. People started lining up. Torres says the clerk's office has a only few people working in it.

"The clerk's office was so overrun. After a certain while we couldn't even pick up the phones anymore," he says.

Electricity lines.
pxhere / Creative Commons

Some Eversource customers who braced for higher charges could end up paying less for their electricity after the energy company proposed changes based on the new federal tax law.

A glitch in the Republican tax overhaul has created an uncertain future for Newman’s Own Foundation and the food company it operates.

Cash and income tax forms.
Pictures of Money / Creative Commons / flickr.com/photos/pictures-of-money

With the new year comes a new tax code, and some nonprofits are concerned changes to the tax law could mean fewer donations in 2018.

Cash and income tax forms.
Pictures of Money / Creative Commons / flickr.com/photos/pictures-of-money

For the second straight year, the Massachusetts income tax rate will not automatically drop in 2018.

When you file your 2018 income taxes, you might notice that the standard deduction has essentially doubled. Exemptions will likely be eliminated and in its place, you might see a larger tax credit per dependent claimed. But it also raises at least one other big question: will you give as much to charity?

Republicans in Congress are promising that their tax bill will create jobs. One place where we know it's going to create a lot of work is at the IRS.

That agency will have to figure out how to interpret and implement the hundreds of pages of changes to the tax code that were just passed, at a time when it is already struggling with budget cuts and staff reductions.

The Trump administration says it's already working with the IRS to update tax forms and withholding tables, promising that most taxpayers will notice a difference in their pay stubs by February.

Updated on Dec. 22 on 12:02 p.m. ET

Congressional Republicans delivered on their first major legislative accomplishment of the Trump era on Wednesday, when the House voted 224-201 to pass a $1.5 trillion tax package. The bill cuts individual rates for eight years and slashes the top corporate tax rate to 21 percent permanently.

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