How will the new tax plan affect me?

Congress appears close to passing new tax plan legislation

Will this impact my 2017 taxes?  What are the changes?

 

white collar overtime

Barbara Sutton, MBA, CPA

The new proposed tax legislation would not go into effect until January 1, 2018 if it passes.  Due to Senate budget rules related to the deficit, these tax changes would sunset on January 1, 2026. 

Although too many to list all of the changes here, some of the proposed changes include:  change in tax rates including a decrease in the top rate to 37%; increase in the standard deduction; elimination of personal exemptions; increase in child tax credit; cap on allowance of state and local tax deduction to $10,000; doubling of estate and gift tax exemption to $10 million; and elimination of the penalty for those not getting health insurance coverage.  The bill has not passed yet so it still may change.  Stay tuned.