Episode 28: Hug Your CPA and your IRS Agent

In this episode, we ask: What is going on with the new tax law (the Tax Cuts and Jobs Act)? What’s new with personal taxes? What does the tax code encourage? Where are the tax breaks? How is the effective tax rate different from the marginal tax rate? How does this affect the Mortgage Interest...

In this episode, we ask:

What is going on with the new tax law (the Tax Cuts and Jobs Act)?
What’s new with personal taxes?
What does the tax code encourage?
Where are the tax breaks?
How is the effective tax rate different from the marginal tax rate?
How does this affect the Mortgage Interest Deduction?
How much will this raise the federal deficit?
What about the Affordable Care Act / Obamacare tax?
How does this affect the socioeconomic structure in the U.S.?
What is the hope of the tax law?
What about the Estate Tax?
What about the Child Tax Credit?
What’s the difference between the credit and a deduction?
How do we stack up compared to the rest of the world in corporate tax rates?
What’s new with corporate taxes?
What are the updates with pass-through income?
What happens to the net interest deduction?
What about the carried interest loophole?
What are some of the areas where it’s all stayed the same?
Tax handling of Qualified Plans will continue unchanged (529s may be accessible for K-12 tuition needs, this varies by state.)
Will more people choose the standard deduction over itemized deductions?
Will people continue charitable giving?
Did the new law simplify the code?
Does the new tax law truly provide cuts?
Are you seeing an increase in take-home pay with the tax shift?
Why is the word “Jobs” in the title?
Are we in the lowest tax brackets of our lifetimes right now?
When do most of these changes expire?
What should we be doing with our money in light of these temporary changes?
Is this the best time to be deferring taxes?
How is every 401(k) being taxed?
What is something we can pay the tax on TODAY, so we don’t have to pay tax on it in the future?
How many trillion dollars is currently sitting in qualified accounts?
What is the amount of the government’s unfunded liabilities?

Note: We are not tax experts. Please consult your CPA, your attorney and your tax specialists as you navigate the new tax law.

 

Single filers, 2018-2025

Taxable income over
Up to
Marginal rate

$0
$9,525
10%

$9,525
$38,700
12%

$38,700
$82,500
22%

$82,500
$157,500
24%

$157,500
$200,000
32%

$200,000
$500,000
35%

$500,000
And up
37%

Heads of household, 2018-2025

Taxable income over
Up to
Marginal rate

$0
$13,600
10%

$13,600
$51,800
12%

$51,800
$82,500
22%

$82,500
$157,500
24%

$157,500
$200,000
32%

$200,000
$500,000
35%

$500,000
And up
37%

Married couples filing jointly, 2018-2025

Taxable income over
Up to
Marginal rate

$0
$19,050
10%

$19,050
$77,400
12%

$77,400
$165,000
22%

$165,000
$315,000
24%

$315,000
$400,000
32%

$400,000
$600,000
35%

$600,000
And up
37%

Married couples filing separately, 2018-2025

Taxable income over
Up to
Marginal rate

$0
$9,525
10%

$9,525
$38,700
12%

$38,700
$82,500
22%

$82,500
$157,500
24%

$157,500
$200,000
32%

$200,000
$300,000
35%

$300,000
And up
37%

Source: Joint Committee on Taxation.