“You will keep in perfect peace those whose minds are steadfast, because they trust in You.” Isaiah 26:3.
The Tax Cuts & Jobs Act was signed into law on December 22 by President Trump, causing some key details of the Internal Revenue Code to abruptly change.1
This has been night-and-day change, both figuratively and literally. On January 1, the federal estate tax exemption doubled, and the standard federal income tax deduction nearly doubled. The top corporate income tax rate fell from 35% to 21%. Many business owners who make pass-through income are now able to deduct the first 20% of that income tax-free.2,3
The Internal Revenue Service saw the release of new withholding tables in January, paving the way for eligible workers to see changes to their paychecks.2
Two provisions of the TCJA will also apply retroactively for some taxpayers. A larger federal tax deduction for out-of-pocket medical expenses is allowed not just for 2018, but also for 2017. Taxpayers who itemize may write off qualifying medical expenses exceeding 7.5% of income in 2017, instead of 10% of income. Businesses that bought new capital equipment after September 27, 2017 will be permitted t ...
