The Tax Cuts and Jobs Act makes sweeping changes to the tax rules for individuals. But some of the new provisions won't necessarily be relevant to your situation. Here's a quick reference guide to the major issues under the new law to help you understand what's changing.
In general, the changes for individual taxpayers are effective for 2018 through 2025, unless otherwise noted.
Also, be aware that federal tax law changes could affect state income tax obligations. This trickle-down effect will create uncertainty as states decide whether to conform to or decouple from the federal rules.
House Republicans promise to introduce additional legislation later this year that would make individual tax cuts under the TCJA permanent. If a bill passes the House, it would face an uncertain future in the Senate, where it would need 60 votes to pass. Republicans currently hold 51 seats in the Senate.
In the meantime, it's important for you to meet with your tax advisor to determine how the changes will affect your personal tax situation in 2018 and beyond.
Self-employed individuals and owners of pass-through business interests should contact their tax professionals regarding relevant tax planning strategies.
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