President Donald Trump passed the Tax Cuts and Jobs Act late last year. Since then, many of us in public accounting have been scrambling to learn what many of the specific provisions outlined in the legislation mean for individuals and businesses, alike. Today’s episode is dedicated to the individual provisions of Trump’s tax reform initiative, but we’re not going to stop there – be sure to join us next week and the week after that, when we dive deeper into what this sweeping legislation means to business owners.

Cindy Kula, a senior manager and regional tax expert at Rea, joins unsuitable to talk about the many ways tax reform will impact individuals when they go to file their 2018 tax returns: tax brackets, standard deductions, itemized deductions, personal exemptions, the Alternative Minimum tax, and much, much more.

The Tax and Jobs Act: An Overview

The Tax Cuts and Jobs Act is a reality and the provisions are generally for the 2018 tax year. Most provisions are also temporary, due to expire after Dec. 31, 2025. We can provide you with a solid overview of the legislation and our expectations of implication, but it’s important to note that we are waiting for formal guidance from the IRS on a lot of matters. As a result, many details of the tax reform legislation need additional clarification and will continue to be a work-in-process.

If you are an individual who files taxes, you will be interested in learning more about these provisions from the tax form initiative:

• There are seven tax brackets with lower tax rates.
• With the standard deduction increasing and major changes to the itemized deductions, many taxpayers may now opt NOT to itemize deductions.
• Personal exemptions are eliminated.
• Because of the various changes under the tax reform legislation, there is now reduced exposure to the Alternative Minimum Tax

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