W Douglas Everett, CPA

For tax years beginning after December 31, 2017 and before January 1, 2026 the deduction for personal exemptions is effectively suspended by reducing the exemption amount to zero.

Ok, the tax bill has been finalized. The rates have been lowered, good news for middle income taxpayers, and there has been a lot of other changes. For tax years beginning after 12-31-2017, the standard deduction has been increased to: $24,000 for married filing jointly, $18,000 for heads-of-household, and $12,000 for all other taxpayers. These amounts will be adjusted for inflation for tax years beginning after 2018.

IF REPUBLICANS GET RID OF OBAMACARE, they will be able to end the 0.9% and 3.8% Medicare surtaxes. This will only effect upper-incomers.

IF INDIVIDUAL RATES ARE LOWERED, LOTS OF cherished tax breaks will have to be ended. The house plan would eliminate deductions for medical, state and local taxes, real estate tax, employee business expenses and more. They will keep the write-offs for charity and mortgage interest, double the standard deductions and raise the child credit.

TRUMP ALSO WANTS TO SQUISH INDIVIDUAL RATES. He wants to have three rates: 12%, 25%, 33%. He also wants to do away with both the alternative minimum tax and the estate tax. House GOPers are on board with these changes, the fight will be with Senate Democrats.

STANDARD MILEAGE RATES FOR 2017 ARE ANNOUNCED! The optional standard mileage rate for business use of a vehicle will drop to 53.5 cents per mile, down from 54 cents a mile in 2016. Driving for medical or moving purposes dropped 2 cents from 2016 to 17 cents a mile. Charitable driving will remain at 14 cents a mile.

Trump also wants a onetime tax on off-shore earnings . Levying a onetime tax rate of between 8.75% and 14% on previously untaxed earnings held abroad. Earnings subject to the tax could then be brought back to the U.S. tax-free.

EXPECT A MAJOR OVERHAUL OF TAX RATES! Trump wants a 15% rate for regular corporations, pass-throughs such as LLCs and S Corporations, and sole proprietors who report on Schedule C. This is different from the House which calls for 20% corporate rate and 25% for pass-throughs and sole-props.

CLAIMING EARNED INCOME TAX CREDIT? If your tax return will claim Earned Income Tax Credit and/or the Additional Child Tax Credit expect your refund to be delayed. The IRS will be holding refunds on returns containing those tax credits until February 15, 2017. This means those refunds wont arrive in bank accounts or debit cards until the week of February 27th. This is an effort to stop the fraud associated with these credits.

The filing deadline for 2016 returns is Tuesday, April 18, 2017. This date is due to April 15 falling on a Saturday and the following Monday being Emancipation Day, a legal holiday in the District of Columbia.

Tax Season Starts January 23, 2017. This is the date the IRS will begin accepting electronically filed returns.