Individual Tax Update (SMTX37/19)

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Event Description

This course reviews the highlights of the Individual portion of HR1–Tax Cuts and Jobs Act. Topics include an overview of the new tax rates and how reform has affected accounting methods for business income.

Key Topics
• Basic Functional Changes (Increased standard deduction; Removal of personal exemption; Inflation adjustments)
• Reform of Individual and Family Tax Credits (Child tax credit; Elderly and permanently disabled; Repeal of electric and plug-in motor credit; Higher education credit reform)
• Individual items (Loss limitations for taxpayers other than corporations; Repeal of deduction of student loan interest and qualified tuition; Repeal of exclusion of interest on US savings bonds for higher education; Repeal of deductions for alimony; Termination of deductions for medical savings accounts; Repeal of exclusion of adoption assistance programs)
• Itemized Deductions (Repeal of overall limitation of itemized deductions; Modifications to home interest deduction; Modification of taxes paid, not from a trade or business; Modifications to charitable contribution limitations; Repeal of miscellaneous deductions, especially 2106; Repeal of deduction for medical expenses after 2018)
• Modifications and Reforms to Retirement
• Modifications to Alternative Minimum Tax 
• Elimination of Shared Responsibility Payments (2019)
• Deductions for income from a trade or business (Simple rules; Income-based rules; Professional service-based rules)

Major Subjects

Basic Functional Changes: Increased standard deduction, removal of personal exemption, and inflation adjustments Reform of Individual and Family Tax Credits: Child tax credit, elderly and permanently disabled, repeal of electric and plug in motor credit and higher education credit reform

Individual Items: Loss limitations for taxpayers other than corporations; Repeal of deduction of student loan interest, and qualified tuition; Repeal of exclusion of interest on US savings bonds for higher education; Repeal of deductions for Alimony; Termination of deductions for medical savings accounts; and, Repeal of exclusion of adoption assistance programs

Itemized Deductions: Repeal of overall limitation of itemized deductions; Modifications to home interest deduction; Modification of taxes paid, not from a trade or business; Modifications to charitable contribution limitations; Repeal of various miscellaneous deductions, especially 2106; and, Repeal of deduction for medical expenses (after 2018)

  • Modifications and Reforms to Retirement
  • Modifications to Alternative Minimum Tax
  • Elimination of Shared Responsibility Payments (2019)
  • Deductions for Income from a Trade or Business: Simple rules, income-based rules, and professional service-based rules

Discussion Leader

Anthony Rocca, CPA