The main individual change that will not end is the eliminated penalty for not having minimum medical insurance as enacted by the Affordable Care Act. All of these changes will revert back to their pre-TCJA provisions after 2025. Lastly, miscellaneous tax deductions for things like workplace expenses for employees were completely eliminated. Fourthly, the state and local tax (SALT) deductions became capped at $10,000. Thirdly, the deduction for interest on home mortgages and equity was altered to reduce the mortgage limit to $750,000 and to limit eligible home equity. This increase in the standard deduction greatly reduced the number of individuals who benefit from itemizing deductions. Secondly, the TCJA greatly increased the standard deduction from $6,500 to $12,000 for individuals and from $13,000 to $24,000 for those filing jointly. Further, the income levels for the brackets were slightly increased, which generally reduced taxes for individuals. Only some of the TCJA changes were permanent, and over twenty provisions will expire by the end of 2025.įor individual tax deductions, the TCJA reduced some of the overall tax rates and changed many deductions. TCJA made many large changes across multiple areas of the tax code, including most infamously reducing the corporate tax rate, increasing the standard deduction, and increasing the applicable exclusion amounts for estate taxes. The Tax Cuts and Jobs Act of 2017 (TCJA) is the unofficial name for the large set of changes to the Revenue Code of 1986, signed into law by President Trump in 2017.
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