As we welcome the new year, we should also brace ourselves for major change; Americans are about to face the biggest tax overhaul since 1986. The Tax Cuts and Jobs Act, often referred to simply as, “The Act”, has been approved by both chambers of Congress and was effectively signed into law by President Trump on December 22, 2017. Fortunately, most of the provisions will be implemented in the 2018 calendar tax year, giving taxpayers some time to consult with their advisors in order to better understand how The Act impacts their tax liability.
Some of the most notable changes include revamped tax brackets with lowered rates across all tiers, the repeal of personal exemptions and other tax credits while nearly doubling the standard deduction allowance (the amount that can be subtracted from a non-itemizer’s income before income tax is applied), and a substantial cut to corporate tax rates, allowing for more generous expensing. In the following pages, we have highlighted some of the changes to the Internal Revenue Code that will affect many families and businesses across the nation.
Changes to Individual Taxation
Changes to Itemized Deductions
Changes to Business Taxation