The Tax Cuts and Jobs Act: What Does it Mean?

         A sweeping change of the Federal Tax code has been passed. There are many questions and concerns about how it will affect individuals and businesses. Some changes are planned to be permanent, others will go away after a period of time, but now is the time to get familiar with the details of what this act will really do.

          First of all, please keep in mind that this law will not affect the Tax Return you will file by April 2018. The provisions and changes in this Act will start in 2018 and will be seen in the Tax filings in 2019. For individuals, there will be some very big adjustments in how their finances are taxed. For example, a Taxpayer will only be able to file as: Single or Married Filing Jointly. In future posts we will go into greater detail on this and other changes.

          In the area of business, we can find other ways the Tax Code is different. The tax rate for businesses will lowered to 21% starting in 2018. However, there are certain corporations that may fall into the “specified service business” category. If they do, then they will not qualify for any deductions. The law is new and quite detailed. We at Anthony Sykes & Co are here to help individuals and businesses to get a handle on what the Tax Cuts and Jobs Act will mean for you.

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