Tax expert explains DC filing season amid Congress-District dispute

WASHINGTON (7News) — D.C. taxpayers may be confused by back-and-forth between the D.C. City Council and Congress over taxprovision. The city’s financial officer sent a letter to Mayor Muriel Bowser and D.C. Council Chair Phil Mendelson, that said the District’s tax laws will not change, despite recent actions by Congress.

7News spoke to director of Tax Policy at the Center for American Progress Corey Husak to explain the complicated tax policy.

“The short answer is, nothing changes. Filing Season can continue as it has been, continue as planned, and according to the laws as we understood them in January,” said Husak.

“If you’ve already filed your taxes, you don’t have to change anything. And if you want to file your taxes, the rules are still the same as they were on the books before,” said Husak.

RELATED | DC Council Chairman talks taxes, budget, bodycams, federal surge

Chief Financial Officer Glen Lee’s revenue estimate issued Friday does not include an estimated $180 million expected this fiscal year from the city’s decoupling law, “due to the uncertainty of the associated revenue as a result of Joint Resolution 142,” according to a released letter.

“The CFO was in a tough spot here. If he agreed with Congress, then businesses and overtime workers will get bigger refunds. But if he agreed with the Mayor and the Attorney General, then families with children and lower income workers would get bigger tax cuts,” said Husak.

SEE MORE | Development of new Commanders stadium scrutinized at DC oversight hearing

“We as District residents can’t control, you know what happens in the courts, what happens in, you know, what Congress does in the future,” said Husak. “But for now, the CFO has said, you know this is, this is a law as it stands, and the law that I’m going to enforce so, you know, file your legally obligated taxes, and maybe in the future, there’ll be a surprise.”

WATCH THE FULL INTERVIEW