The newly signed Tax Cuts and Jobs Act overhauls the Internal Revenue Code and provides broad tax relief to workers, families and businesses of all sizes.
Tax rates are lowered for individual and business taxpayers and various tax deductions and credits are eliminated or reduced. A typical family of four earning $73,000 a year could receive a tax reduction of as much as $2,000. Most of the provisions contained in the tax reform law apply to Tax Year 2018 and future years up to December 31, 2025.
There is a bundle of tax law provisions, such as the tuition and fees deduction and mortgage insurance premiums treated as residence interest that expired at the end of Tax Year 2016. Congress is expected to extend these measures for Tax Year 2017.
Implications to Your Tax Practice
Tax professionals are subject matter experts and should quickly get up to speed on the legislation and the impact on their individual and small business clients. Although most of the legislation applies to Tax Year 2018, taxpayers should be made aware of these changes as the calendar turns to 2018.
Tax professionals should consider turning the vital tax law measures into layman’s language and communicate the material to clients and prospects
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About Mike D'Avolio, CPA
Mike D'Avolio is senior tax analyst with the Intuit Professional Tax Group, he has been a small business tax expert for more than 20 years and serves as the primary liaison with the IRS for tax law interpretation matters, manages all technical tax information, and supports tax development and other groups by providing them with current tax law developments, analysis of tax legislation, and in-depth product testing.