Does Your Accountant/Tax Attorney Know the Extended Tax Breaks for the 2017 Tax Year?
If you thought the Tax Cuts and Jobs Act signed into law December 22, 2017 was the final determination on tax matters for the foregoing future, you were wrong. On February 9, 2018, with a 240-to-186 House vote and a 71-to-28 Senate vote, Congress approved the Bipartisan Budget Act. The Act contains a number of tax provisions and extensions of over 30 expired tax breaks. While the majority of tax relief in the legislation applies only to the 2017 tax year, the retroactive changes will have a large impact on the current filing season.
Additionally, a number of new provisions within the Bipartisan Budget Act modified provisions passed under the Tax Cuts and Jobs Act. The modifications include new mandated tax forms for seniors filing taxes, as well as excise taxes on investment income regarding private colleges and tuition. The IRS has recognized the extensions and modifications will have a direct impact on the current filing season. The IRS issued a statement on February 9, 2018, stating they “will provide additional information as quickly as possible for affected taxpayers and the tax community.”
With over 30 extensions to previously expired tax breaks, it’s important you work with a knowledgeable professional to minimize your tax liabilities. The Tax Cuts and Jobs Act is five hundred plus pages of dense tax and accounting material. Additionally, the Bipartisan Budget Act is another six hundred and fifty plus pages of legalese writing. To be blunt, understanding the material can be confusing, however it’s vital to take advantage of what is offered by the IRS. To maximize your dollar by minimizing your tax liabilities, allow The Center for Financial, Legal & Tax Planning, Inc., to provide you the insight necessary for the most profitable path forward.