With all the press on the Senate and the House having passed new tax bills, one might think that there is some information out there that taxpayers can use to get a jump start on their tax outlook. Unfortunately, that is not the case. Each bill differs significantly in a number of ways, so the bills will go to a reconciliation committee that will hash out the differences. Once a uniform bill is agreed to by the committee, the consolidated bill will return to each chamber for a vote.
We don't know when this is going to occur, but we're counting on significant disruption to the upcoming tax filing schedule and the ability of the IRS to release tax forms for 2017 and 2018. Keep an eye out for updates to our blog that will cover the new provisions in the bill when it is passed into law. Some changes that seem probable:
1) Reduction of the (C) corporation tax rate from 36.5% t0 20%.
2) No significant changes to S-corporation and partnership tax provisions.
3) Elimination or limitation of certain deductions on Form 1040, such as the state and local income tax deduction.
4) An lowering of phaseout thresholds for tax credits and deductions on Form 1040.
5) Consolidation of personal tax brackets.
6) No significant changes to retirement plan limits and provisions.
7) No changes to entitlement taxes such as Social Security and Medicare.
As soon as we find out the details on the new law, we'll pass them on to you!