President Donald Trump and Congress passed the Tax Cuts and Jobs Act late last year. Since then, many of us in public accounting have been scrambling to learn what many of the specific provisions outlined in the legislation mean for individuals and businesses, alike. This episode is dedicated to the individual provisions of Trump’s tax reform initiative, but we’re not going to stop there – be sure to join us next week and the week after that, when we dive deeper into what this sweeping legislation means to business owners.
Cindy Kula, a senior manager and regional tax expert at Rea, joins us on unsuitable to talk about the many ways tax reform will impact individuals when they go to file their 2018 tax returns: tax brackets, standard deductions, itemized deductions, personal exemptions, the Alternative Minimum tax and much, much more.
The Tax Cuts and Jobs Act is a reality and the provisions are generally for the 2018 tax year. Most provisions are also temporary, due to expire after Dec. 31, 2025. We can provide you with a solid overview of the legislation and our expectations of implication, but it’s important to note that we are waiting for formal guidance from the IRS on a lot of matters. As a result, many details of the tax reform legislation need additional clarification and will continue to be a work-in-process.
If you are an individual who files taxes, you will be interested in learning more about these provisions from the tax form initiative:
- There are seven tax brackets with lower tax rates.
- With the standard deduction increasing and major changes to the itemized deductions, many taxpayers may now opt NOT to itemize deductions.
- Personal exemptions are eliminated.
- Because of the various changes under the tax reform legislation, there is now reduced exposure to the Alternative Minimum Tax
If you liked this episode of unsuitable on Rea Radio, let us know by hitting the like button or by sharing it with your followers on social media. You can also use #ReaRadio to join the conversation on Facebook and Twitter, and you can watch the podcast in action on the Rea & Associates YouTube channel. We’ve also included access to additional resources on our website at www.reacpa.com.
video
more resources
Baby Stepping into the New Year with Quickbooks! – Learn how to maintain your books properly with expert tips about the Quickbooks software.
Resource Center | Tax Reform Guidance – Time is of the essence and we are committed to providing you with expert insight on each piece of the tax legislation. We will continually keep you updated with the latest on tax reform.
Federal Tax Reform and the Possible State Tax Implications for your Business – With the new Tax Cuts and Jobs Act being signed into law, the will also be state income tax implications as well.
C Corp Tax Rate Drops To 21% – With the new tax rate at 21 percent, is now the time to revisit your choice of entity?
With Tax Season Comes Tax Scams – Identity theft and refund fraud are the most common tax scams and with tax season coming, the threats only get worse.
official transcript
Click here to read the official transcript for episode 117, “What Individuals Need to Know about Filing 2018 Tax Returns & Trump’s Tax Reform Initiative.”