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Tag Archive for Individual Tax And Tax Reform

Tax Reform’s Impact On Individual’s Taxes

Haik Chilingaryan, Tax Reform And Individual Taxes

During this post, we discuss how the new changes in the tax laws may have an overall positive effect on individual rates and deductions. However, a crucial component of the Tax Cuts and Jobs Act is that the rates and other provisions of the new tax code have a sunset provision, which means that on December 31, 2025, all of the rates are likely to be reinstated unless some legislation is introduced that will retain these rates or lower them even further.

Synopsis

The Tax Cuts and Jobs Act of 2017, otherwise known as GOP tax reform bill, largely went into effect on January 1, 2018. A crucial component of TCJA is that the rates and other provisions of the new tax code have a sunset provision. This means that on December 31, 2025, all of the rates are likely to be reinstated unless some legislation is introduced that will retain these rates or lower them even further.

The following are the list of major changes under the new tax code:

  1. Brackets Lowered (rates sunset on December 31, 2025)
  2. Personal Exemptions Repealed
  3. Standard Deduction Nearly Doubled
  4. State and Local Tax Deduction limited to $10,000
  5. 21% flat rate for C-corporations
  6. Qualified Business Income Deduction for Pass-Through Businesses
  7. Estate Tax Exemption More Than Doubled

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