Category: Tax Law
What the Most Sweeping Tax Law in 30 Years Means for You
By Mark Sipos The Tax Cuts and Jobs Act of 2017 is the most sweeping change to the tax code in over 30 years. Understandingthese new tax laws and working proactively within them can save taxpayers thousands of dollars. We would like tohighlight the major changes of this new tax legislation and how it impacts individual taxpayers. President Trumps tax plan calls for maintaining the seven brackets found under the old law, however, the new lawreduces the rates 2-3% across the various bracket income levels. Its worth noting that the new tax brackets have dramatically increased the income levels within each bracket, so more of your taxable income will be taxed at lower tax rates! There are deductions to consider as well. Changes are coming for taxpayers who take the standard deduction and for those who itemize. The Trump tax plan increases the standard deduction to $12,000 (for individuals) and $24,000 (for married couples fling jointly), effectively doubling these standard deductions under
THE TAX CUTS AND JOBS ACT - CURRENT LAW VS. HOUSE AND SENATE PROPOSALS
Over the weekend of December 2nd, the Senate passed its tax reform bill, with a vote that mostly followed party lines. The recent Senate vote follows the Houses tax bill which was passed several weeks earlier. While the House could choose to expedite legislation by voting on the Senate bill without amendments, Republican leadership has indicated a conference committee will be assembled to reconcile differences between the bills. Modifications will need to be done in a manner that finds suitable compromises while still positioning the final bill to carry a majority vote in both houses. The Republicans have stated that their goal is to have a complete bill to President Trump by Christmas. We know that many of our clients wonder what these changes look like, and how the two bills compare to each other. Below is a chart comparing current law with the House and Senate proposals. Its likely we will see some changes as a final bill coalesces. The Tax Cut and Jobs Act: A Side by Side
The Tax Cuts and Job Act: A Balanced Review
We know that many people are curious about the tax bill announced in the House of Representatives yesterday, H.R.1: The Tax Cut and Jobs Act. Weve put together a balanced review of the bill, and wanted to share it in a timely way. The proposed bill: Condenses individual tax rates to Zero, 12%, 25%, 35%, and 39.6%. Increases the standard deduction from $6,350 to $12,000 for individuals and from $12,700 to $24,000 for married couples. Establishes a new Family Credit, which includes expanding the Child Tax Credit from $1,000 to $1,600 to help parents with the cost of raising children, and providing a credit of $300 for each parent and non-child dependent to help all families with their everyday expenses. Preserves the Child and Dependent Care Tax Credit to help families care for their children and older dependents such as a disabled grandparent who may need additional support. Preserves the Earned Income Tax Credit to provide tax relief for low-income individuals and families. Streamlines
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