Senate Passes Tax Cuts Jobs Act What It Means For Taxpayers

Dated: December 20 2017

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With less than a week until their Christmas deadline, The U.S. Senate passed the most sweeping rewrite of the nation's tax laws in more than three decades earlyWednesday, all but ensuring the bill will soon become law.

House Republicans passed
 the converged Tax Cuts and Jobs Act bill in a 227-203 voteon Tuesday. However, the Senate Parliamentarian is requiring a re-vote, citing three provisions in violation of the Senate Byrd rule. The House will vote again today and all signs point to the bill making it to President Trump’s desk.  (Click infographic to enlarge)

If the bill is signed by the end of the year, U.S. taxpayers could see an impact on their paychecks as early as the next couple of weeks. The new bill has lowered the tax brackets, which will mean less money taken out of some paychecks. Most changes, however, will become apparent when U.S. residents go to file taxes in 2019 for the 2018 tax year. The numbers will change over time, as well. The Tax Policy Center estimates that although individual taxes would be reduced, on average, in 2018, more than half of households could experience a tax increase by 2027.

Here are some of the major changes Americans can expect if the bill successfully passes:

  • Eliminates the Affordable Care Act healthcare mandate

  • Reduces the corporate tax rate from 35 percent to 21 percent

  • Roughly doubles the standard deduction for both individuals and married couples

  • Increases the child tax credit from $1,000 to $2,000

  • Lowers the threshold for the mortgage interest deduction from $1 million to $750,000

  • Doubles the basic exclusion on the estate tax

Source NAR/RIS

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David Sarnowski

David is a seasoned real estate professional, specializing in residential sales, rentals and investment properties. David is an 18 year resident of the New Jersey Gold Coast, with the local knowledge ....

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