The Tax Cuts and Jobs Act (TCJA) or Tax Reform 2018 makes sweeping changes to the tax rules for individuals. Here’s a quick reference guide for some of the major changes under the new law to help you understand what exactly is changing. In general, these changes are for individuals taxpayers effective 2018 through 2025, unless otherwise noted.
Keep in mind that federal law changes could affect state income tax obligations. This trickle-down effect will create uncertainty as states decide whether to conform to or decouple from the federal rules.
House Republicans promise to introduce additional legislation later this year that would make individual tax cuts under the TCJA permanent. If a bill passes the House, it would face an uncertain future in the Senate, where it would need 60 votes to pass. Republicans currently hold 51 seats in the Senate.
Confused, yet? Before you start worrying too much, please reach out to us and we’ll help you determine how these changes will affect your personal tax situation. We can help you with relevant tax planning strategies.
Self-employed individuals and owners of pass-through business interests should feel free to reference our last post, https://www.pughcpas.com/06/quick-reference-guide-for-the-2018-tax-cuts-and-jobs-act/.