ITG Issue Snapshots: The Work Opportunity Tax Credit, Net Gaming Profits and the Kiddie Tax
Internal Revenue Service (IRS) sent this bulletin at 07/19/2019 07:55 AM EDT
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Issue Snapshots provide IRS analysis and resources along with audit tips or issue indicators for technical tax issues. The snapshots are designed for IRS employees, but the information is also helpful for people interested in these issues. The most recent Issue Snapshots for Indian tribal governments are: Availability of the Work Opportunity Tax Credit to Tribes and Tribal Entities The Work Opportunity Tax Credit (WOTC) provides a business tax credit to certain employers who hire workers from certain targeted groups. The WOTC is generally claimed as a credit against income tax. Per Capita Distributions on Net Gaming Profits and the Kiddie Tax Per capita distributions from net casino profits made to certain children are subject to a special tax calculation commonly referred to as the “kiddie tax”. For taxable years before 2018, the tax is based on the parent’s rate if the parent’s rate is higher than the child’s rate. For taxable years 2018 through 2025, children required to make this calculation may be subject to tax based on tax rates normally applicable to trusts and estates. The tribal community can find answers to many questions on IRS.gov/tribes. If you have a question on any tribal tax matter, please visit Contact ITG for a list of ITG offices that may be able to help you. If you know someone who wants to subscribe to this mailing list, please forward this message to them to subscribe. This message was distributed automatically from the mailing list Indian Tribal Governments News. Please do not reply to this message. |