Tax Cuts and Jobs Act: Let's Begin!

At the passage of the bill, one of the Republican Congressmen said to keep 3 dates in mind in Year 2018:
January 1, February 1, 
and April 15.

Well, here we are on the cusp of the 1st day of year 2018.  The highlights are all we've got so far:
(I am writing this post on December, 2017). 

pc: forbes

pc: Forbes

pc: Forbes

• If you are over age 65, blind or disabled, you can tack-on $1,300 to your standard deduction ($1,600 for unmarried taxpayers).

Compare the above tables to the IRS' 2017 tax rates HERE
You can read the above Forbes article in full HERE.

Otherwise, here are a few more of the deets (via wikipedia & the White House) that caught my attention for a variety of reasons:

• Family tax credits. The bill doubles the child tax credit from $1,000 to $2,000, $1,400 of which will be refundable. It also provides a $500 credit for other dependents, versus zero under current law.

• State, local, sales, and property tax deduction. The deduction for state and local income tax, sales tax, and property taxes ("SALT deduction") will be capped at $10,000. This would have more impact on taxpayers with more expensive property, generally those who live in higher-income areas, or people in states with higher state tax rates.

• Education deductions and credits. No changes are made to major education deductions and credits, or to the teacher deduction for unreimbursed classroom expenses, which remains at $250. The bill initially expanded usage of 529 college savings accounts for both K-12 private school tuition and homeschools, but the provision regarding homeschools was overruled by the Senate parliamentarian and removed. The 529 savings accounts for K-12 private school tuition provision was left intact.

• Alimony deduction. Alimony paid to an ex-spouse will no longer be deductible by the payor. However, alimony payments will no longer be included in the recipient's gross income. This effectively shifts the tax burden of alimony from the recipient to the payor. This provision is effective for divorce and separation agreements signed after December 31, 2018.

• Moving expense deduction. Employment-related moving expenses will no longer be deductible.

• Tax preparation expense deduction. Expenses related to preparing and filing your taxes (such as accountants or tax-preparation software) will no longer be deductible.

• Mortgage interest deduction: Mortgage interest deduction for newly purchased homes (and second homes) would be lowered from total loan balances of $1 million under current law to $750,000. Interest from home equity loans (aka second mortgages) will no longer be deductible, unless the money is used for home improvements.

• The corporate tax rate would fall from 35% to 21%, while some related business deductions and credits would either be reduced or eliminated

• The Act contains provisions that would open 1.5 million acres in the Arctic National Wildlife Refuge to oil and gas drilling. This major push to include this provision in the tax bill came from Republican Senator Lisa Murkowski. The move is part of the long-running Arctic Refuge drilling controversy; Republicans had attempted to allow drilling in ANWR almost 50 times (Really?!!!)

• Members of Congress will no longer be able to deduct their living expenses.
• A 21 percent excise tax will be imposed on compensation over $1 million paid to executives at tax-exempt organizations.
• The loophole used to deduct executive compensation over $1 million will be eliminated.

Let the [Tax-cut] adventure begin!

The White House: The Tax Cuts Act

Tax Cuts & Jobs Act of Year 2017


Preliminary Details & Analysis


ANWR

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