Important Changes to Tax Law and What They Mean
In December of
2017, the Tax Cuts and Jobs Act (TCJA) was signed into law. With this new act,
we will see many changes to the tax laws and its effects on tax filings. The
TCJA includes altered deductions, tax brackets, and tax relief among other
implemented changes. Here is a summary of some of the major changes in the
TCJA.
Marginal Income Tax Rates and Brackets
One of the most talked about changes included in the Tax Cuts and Jobs Act is
the change to the marginal income tax rates and brackets. The effects of these
new rates and brackets will lift unintended tax penalties for married filers
while also lowering rates for taxpayers.
Increased Standard Deduction
Both single taxpayers and married couples filing jointly will see their
standard deduction amount increase. Single taxpayers will see their deductions
increase from $12,700 to $24,000 while married couples will see their
deductions increase from $12,700 to $24,000. All of this will mean there will
be a decrease for those itemizing their deductions.
Health Care
Starting January 1, 2019, there will no longer be a tax penalty for not having
health insurance. Due to this, the deductible floor will be lowered temporarily
from 10% to 7.5% for both 2017 and 2018. This means medical expenses that are
more than 7.5% of your adjusted gross income can be deducted as compared to 10%
previously.
While these changes may be some of the most important, there are still
provisions related to corporate tax, the QBI deduction, tax relief for
individuals, and many more subjects. WebCE’s new course--
2018 Update:
Tax Cuts and Jobs Act—will help you help your clients with the many changes
to the tax code ushered in by the TCJA. By the end of the course, you will be
able to identify changes caused by the TCJA to individuals and businesses as
well as how to apply them.
To order the
2018
Update: Tax Cuts and Jobs Act course and more, view the
WebCE catalog or call 877.488.9308 to speak
to a WebCE support services team member.
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