Looking back at 2018, it was certainly a year filled with uncertainty and speculation about the recently enacted tax reform would impact taxpayers. P.L. 115-97, better known as The Tax Cuts and Jobs Act (TCJA) was signed into law on December 22, 2017 by President Trump.
While heavily focused on much-needed corporate tax changes designed to make the United States more competitive in the world economy, the TCJA also levied many changes on individuals, impacting both individual taxation and estate taxes. This article will highlight the personal income tax changes that are most widely applicable to our clients.
After reviewing these changes, we will illustrate how taxpayers fitting various client profiles were impacted by the changes (the good, the indifferent, and the ugly).
Finally, we take a closer look at how those changes have reshaped the tax planning landscape going forward—at least until the changes expire at the end of 2025 or interim legislation gets to them sooner.