Like mentioned before there were both benefits and negative impacts brought by tax reform. Most of the negative impact affects the itemized deductions. I have already covered those in another webinar. I will link that video bellow.
A few of the other negative impacts through 2025 are:
- Elimination of personal exemptions.
- Elimination of moving expense deduction with an exception for members of the military in certain circumstances.
Now, lets switch gears to discus benefits. Those are what we are all exited about anyways.
- Generally, dropping of individual income tax rates and increasing income amount brackets. Ultimately reducing tax.
- Doubling of the standard deduction to $24,000 (married couples filing jointly), $18,000 (heads of households), and $12,000 (singles and separate filers)
- Doubling of the child tax credit to $2,000, that is partially refundable.
- Expansion of tax-free Section 529 plan distributions to include those used to pay qualifying elementary or secondary expenses, up to a $10,000 per student per tax year.
- AMT exemption increase to $109,400 for (married couples filing jointly), $70,300 for (single filers and heads of household), and $54,700 for (separate filers).
- Doubling of the gift and estate tax exemptions to $10 million adjusted for inflation.
- And the elimination of the penalty associated with the individual mandate under the Affordable Care Act required of taxpayers not covered by a qualifying health plan—effective for months beginning after December 31, 2018.
For more information see:
The materials posted in this article are for informational purposes only and should not be regarded as accounting or tax advice provided by YR Tax Compliance LLC. These materials have been prepared by professionals, however they should not replace professional services, and the user should seek advice before acting on any information presented. Every situation is uniquely different, and could make a world of difference on implementation of specific regulations. YR TAX Compliance LLC assumes no obligation to provide notification of changes of tax laws, regulations or other factors that could affect the information posted.