Resources for understanding the Tax Cuts & Jobs Act of 2017

 

There is no easy way to talk about the various changes happening with the US Tax Code.

At this time the IRS has not issued any regulations or instructions for interpreting the new

rules. In a nutshell, not everything about the new rules is known or even knowable and will

not be until the IRS creates definitions, regulations and releases instructions. Analysts

have estimated that it will be close to mid-summer before the technical corrections come

flooding out. This means we won't have enough information to fully advise you until then. 

 

For the time being we will be posting information that we find useful in helping to interpret

and understand the changes. When we have some final details we will do our best to help

you understand what the changes mean to you.

One very important thing to know is that these changes will not effect your 2017 taxes. 

Following are some articles and resources that can help you understand the changes that are coming for 2018.

  • With regard to K-12 Education, for Tax Payers with school age children one of the changes allows distributions from 529 plans to be used to pay up to a total of $10,000 of tuition per beneficiary (regardless of the number of contributing plans) each year at an elementary or secondary (K-12) public, private or religious school of the beneficiary’s choosing.

 

The following resources were helpful in understanding the proposals in the House and Senate.

updated 12/27/17

There is plenty of advice going around about pre-paying certain taxes and expenses in 2017 to ensure you can deduct the expense. While in some cases this is good advice, but be sure to check your State and local laws to be sure it will be allowed. For example, at this time Washington State will not allow you to deduct your 2018 Property Taxes in 2017. As of 12/22/17 King County was returning checks to customers who prepaid. 

Here are some resources and information that we find useful:

This article from the Journal of Accountancy goes over, "How tax overhaul would change business taxes"

One of our favorite writers is Kelly Phillips Erb from Forbes. Her articles are easy to understand and timely.

 

Here are some of her recent articles that we find helpful in understanding the current tax proposals:

 

 

Here's some practical advice from NATP

IRS quick links to updated forms and info:

2018 Withholding Tables

* Guidance for Deducting Home

Equity Loan Interest

Tel: (206) 937-7410

 

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