TCJA webinar for First Year - Questions Flashcards
Has the marginal tax bracket system changed in 2018?
No. Marginal tax bracket system still in place.
What is a good analogy for marginal tax bracket system?
Buckets. We fill the first one. Then if money left, we fill the next one, and the next, until income allocated.
What areas are changing in the marginal tax brackets?
The brackets are same, only amounts and rates have changed.
Will most taxpayers have lower taxes with the new rules.
Yes, although this is specific to cases.
How will the decision to itemize be made under the new tax rules?
Same - compare the standard deduction to itemized deductions and pick most beneficial.
What are the standard deductions for 2017 and 2018?
Single 2017: $6350 2018: $12000
HOH 2017: $9350 2018: $18000
MFJ 2017: $12700 2018: $24000
How is preferential treatment of cap gains and qualified dividends changing?
Brackets that determine the rates are no longer related to income tax brackets. They have their own brackets.
Tax on cap gains is still computed on separate worksheet.
Cap gains rates remain the same
What are the steps for computing cap gains?
Compute taxable income. Subtract cap gains income. Compute tax on remaining income. Compute tax on capital gain income Add two tax amounts to get total tax.
Have there been changes to the tax rules for Unemployment Compensation in 2018?
No
Have there been changes to the Taxable Scholarships and Grants rules for 2018
No
Have there been changes to the Child and Dependent Care credit rules for 2018
No
Have there been changes to the Saver’s Credit rules for 2018?
No
Have there been changes to the Student Loan Interest Adjustment rules for 2018?
No
Have there been changes to Educator Expense Adjustment rules for 2018
No
Have there been changes to the taxable scholarships and grants tax rules for 2018?
No
