2018 Update: Tax Cuts and Jobs Act

by User Not Found | Dec 20, 2018

Important Changes to Tax Law and What They Mean

2018 Update: Tax Cuts and Jobs Act 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.

Order Courses