12 states haven't caught up with tax extenders, will affect tax liability

[jklcpa]

Taxpayers in 12 states will be unable to use certain federal tax breaks on their state tax returns because of Congress’s late passage of tax extenders legislation, leading to lower state tax refunds.

 

Link to whole article from Accounting Today.

 

 

These 12 states tend to pass yearly legislation to conform to federal tax breaks:

•    Arizona*
•    California
•    Georgia
•    Hawaii*
•    Iowa*
•    Idaho*
•    Indiana
•    North Carolina
•    Ohio*
•    Virginia*
•    Wisconsin*
•    West Virginia*

* These states have introduced bills to update their conformity date and will likely conform in the near future.

Edited February 20, 2015 by jklcpa
added the list of states

[Lynn EA USTCP in Louisiana]

I received an announcement yesterday from Virginia that they had passed legislation to conform to December 31, 2014.

 

TAX BULLETIN 15-1

 

Governor McAuliffe 

Signs Bill Advancing Date 

of Income Tax Conformity 

to December 31, 2014

 

February 19, 2015

 

 

 

 

Conformity to the Internal Revenue Code for Taxable Year 2014 

 

Under emergency legislation (Senate Bill 1044; Chapter 1 of the 2015 Acts of Assembly) passed by the 2015 General Assembly and signed by Governor McAuliffe on February 16, 2015, Virginia's fixed-date of conformity to the terms of the Internal Revenue Code will advance from January 2, 2013, to December 31, 2014.  Tax Bulletin 15-1 provides taxpayers with directions on how to reconcile this legislation with their 2014 Virginia income tax returns.  This legislation allows Virginia to conform to federal tax legislation enacted during 2014 that would impact the filing of Virginia income tax returns, including the Tax Increase Prevention Act of 2014. 

 

Virginia will continue to disallow federal income tax deductions for bonus depreciation allowed for certain assets under Internal Revenue Code ("IRC") §§ 168(k), 168(l), 168(m), 1400L and 1400N; the five-year carryback of federal net operating loss deductions generated in Taxable Year 2008 or 2009; federal income tax deductions for applicable high yield discount obligations under IRC § 163(e)(5)(F); and federal income tax exclusions related to cancellation of debt income realized in connection with a reacquisition of business debt at a discount after December 31, 2008, and before January 1, 2011.

 

 

 

 

 

To view the details of this Tax Bulletin, click here.

 

If you have additional questions, please visit the Department's website at http://www.tax.virginia.gov, or contact the Department at (804) 367-8031 for individual income tax questions or (804) 367-8037 for corporate income tax questions.

 

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Edited February 20, 2015 by lynn EA in Louisiana

[Abby Normal]

Why don't they just have a law that says they comply with federal law, whatever it is, unless they decide to decouple?

[kcjenkins]

Why don't they just have a law that says they comply with federal law, whatever it is, unless they decide to decouple?

Because the feds sometimes make huge changes that would cost the state a lot of lost revenue.  So even if they do eventually conform, they may need time to plan for the effect of the change on their total picture.  

[jshtax]

Like the states have a way to enforce these laws.

[joanmcq]

CA has to pass a law saying they will conform. After the estate tax fiasco, I think CA has found it better not to conform. ATX handles most of 'em pretty well.