On Wednesday, December 20, 2017, the legislation previously known as the “Tax Cuts and Jobs Act” (the “Act”)[1] passed the United States House and Senate. At this juncture, it appears President Trump will sign the Act into law on January 3, 2018.
The Act impacts individuals and businesses in a variety of ways. Generally, the Act reforms individual income and corporate income taxes and moves the United States to a territorial system of business taxation. It expands the child tax credit and doubles the estate tax exemption until December 31, 2025. The Act also preserves the mortgage interest deduction and zeros out penalties for not obtaining health coverage under the Affordable Care Act individual mandate.
Click here for a summary table of relevant changes under the Act, comparing the current law with changes under the Act. The table is divided into various topics, listed in alphabetical order.
In addition, click here for a summary table of individual income tax rates for the 2018 tax year.
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[1] The Act is formally known as “An act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018.”
