Likely tax changes

See all full list on fool. Here are the next steps you. WASHINGTON — The Internal Revenue Service today advised taxpayers that the doubling of the standard deduction due to tax law changes is likely to reduce the number of taxpayers who normally itemize.

This is the sixth in a series of reminders to help taxpayers Get Ready for the upcoming tax filing season. President Trump recently signed the tax reform bill into law, and it makes major revisions to the U.

In fact, the bill represents the most significant tax changes in the United States in more than years. The highest tax bracket is now for big earners. Other changes include cutting the rates of income tax , doubling standard deductions, but also cutting some personal exemptions. There are also provisions to discourage the phoenixism of companies to avoid tax debts. Body The IRS is working on implementing the Tax Cuts and Jobs Act (TCJA).

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Other changes to the tax law include the implementation of higher standard deduction for single filers at $10and married couples filing jointly at $20and a higher child tax credit, doubling to $0per child from $0per child last year. How long will it take to get my tax refund? Democrats have also contemplated using small increases to the corporate rate, which the Republican law cut to from ,. Although each party pledged a wide range of tax measures as part of their election platforms, there are certain commonalities.

As these promises were made by multiple parties, it is likely that they would receive non-partisan support if they are later proposed as a legislative or policy change by the new minority government. Related articles You can save hundreds of pounds on car tax. Charitable and medical deductions. Estate planning changes. The Union Budget is likely to have a provision to make trustees liable in the case of violation of charitable trust norms linked to tax exemptions or registration of entities.

The current per cent rate of dividend withholding tax is expected to rise - perhaps to per cent - giving a cash flow boost to the exchequer.

Still, there are a lot of tax law changes for businesses to wade through, and some still require clarification from the IRS. Among other changes this bill. THE NEW CORPORATE TAX RATE IS LOWER —. Tax rate cuts may encourage individuals to work, save, and invest, but if the tax cuts are not financed by immediate spending cuts, they will likely also result in an increased federal budget deficit, which in the long-term will reduce national saving and raise interest rates.

The net impact on growth is uncertain,.