Federal Tax Handbook Updates
Valued Federal Tax Handbook users,
This website will be periodically updated as warranted by important tax events occurring subsequent to the publication of the Federal Tax Handbook. Please check back for updates.
Update February 2018
On February 9, Congress passed, and the President signed into law, H.R. 1892, the “Bipartisan Budget Act of 2018” (the Budget Act, P.L. 115-123). In addition to providing a continuing resolution to fund the federal government through March 23, this 2-year budget contains a host of tax law changes. The Budget Act retroactively extends through 2017 over 30 so-called “extender” provisions, provides tax relief to victims of natural disasters, and includes a number of miscellaneous tax-related provisions.
Please refer to the comprehensive summaries of the new Budget Act below, covering new and extended provisions with background to put the amendments in context, effective dates, and Code Sections affected.
Update December 2017
On December 22, President Trump signed into law “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018” (P.L. 115-97) – commonly known as the “Tax Cuts and Jobs Act” – the largest major tax reform in over three decades.
This comprehensive tax overhaul dramatically changes the rules governing the taxation of individual taxpayers for tax years beginning before 2026, providing new income tax rates and brackets, increasing the standard deduction, suspending personal deductions, increasing the child tax credit, limiting the state and local tax deduction, and temporarily reducing the medical expense threshold, among many other changes. The legislation also provides a new deduction for non-corporate taxpayers with qualified business income from pass-throughs.
For businesses, the legislation permanently reduces the corporate tax rate to 21%, repeals the corporate alternative minimum tax, imposes new limits on business interest deductions, and makes a number of changes involving expensing and depreciation. The legislation also makes significant changes to the tax treatment of foreign income and taxpayers, including the exemption from U.S. tax for certain foreign income and the deemed repatriation of off-shore income.
Please refer to the comprehensive summaries of the new law below, covering over a hundred provisions with background to put the amendments in context, effective dates, and Code Sections affected.
Individual Tax Changes in the “Tax Cuts and Jobs Act”
Business Tax Changes in the “Tax Cuts and Jobs Act”
Foreign Income, Foreign Persons Tax Changes in the “Tax Cuts and Jobs Act”
S Corporation, Partnership & Other Changes in the “Tax Cuts and Jobs Act”
Update November 2017
On November 28, the Social Security Administration announced that the wage base for 2018, which it had previously said would be $128,700, will actually be $128,400.