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Working from home has become commonplace. But just because you have a home office space doesn’t mean you can deduct expenses associated with it. And for 2018, even fewer taxpayers will be eligible for a home office deduction. Changes under the TCJA For employees, home office expenses are a miscellaneous itemized deduction.

The Tax Cuts and Jobs Act (TCJA) enhances some tax breaks for businesses while reducing or eliminating others. One break it enhances — temporarily — is bonus depreciation. While most TCJA provisions go into effect for the 2018 tax year, you might be able to benefit from the bonus depreciation enhancements when you file your 2017 tax return.

It’s common for grandparents to want to help ensure their grandchildren will get a high quality education. And, along the same lines, they also want the peace of mind that their wealth will be preserved for their children and grandchildren after they’re gone.

The IRS has just announced that it will begin accepting 2017 income tax returns on January 29. You may be more concerned about the April 17 filing deadline, or even the extended deadline of October 15 (if you file for an extension by April 17). After all, why go through the hassle of filing your return earlier than you have to? But it can be a good idea to file as close to January 29 as possible: Doing so helps protect you from tax identity theft.

Although the drop of the corporate tax rate from a top rate of 35% to a flat rate of 21% may be one of the most talked about provisions of the Tax Cuts and Jobs Act (TCJA), C corporations aren’t the only type of entity significantly benefiting from the new law.

The Tax Cuts and Jobs Act (TCJA) generally reduces individual tax rates for 2018 through 2025. It maintains seven individual income tax brackets but reduces the rates for all brackets except 10% and 35%, which remain the same. It also makes some adjustments to the income ranges each bracket covers.

Business owners may not be able to set aside as much as they’d like in tax-advantaged retirement plans. Typically, they’re older and more highly compensated than their employees, but restrictions on contributions to 401(k) and profit-sharing plans can hamper retirement-planning efforts.

INDIVIDUAL PROVISIONS

Tax Brackets

The following tax brackets are for the years beginning January 1, 2018.

Single
Married Filing Joint
Married Filing Separate
Head of Household
Bracket

$0 - $9,525
$0 - $19,050
$0 - $9,525
$0 - $13,600
10%

$9,525 - $38,700
$19,050 - $77,400
$9,525 - $38,700
$13,600 - $51,800
12%

$38,700 - $82,500
$77,400 - $165,000
$38,700 - $82,500
$51,800 - $82,500
22%

$82,500 - $157,500
$165,000 - $315,000
$82,500 - $157,500
$82,500 - $157,500
24%

$157,500 - $200,000
$315,000 - $400,000
$157,500 - $200,000
$157,500 - $200,000
32%

$200,000 - $500,000
$400,000 - $600,000
$200,000 - $300,000
$200,000 - $500,000
35%

$500,000 +
$600,000 +
$300,000 +
$500,000 +
37%

 

Standard Deduction

The standard deduction has been nearly doubled, which means the number of taxpayers who itemize will drop drastically.

With the possibility that tax law changes could go into effect next year that would significantly reduce income tax rates for many businesses, 2017 may be an especially good year to accelerate deductible expenses. Why? Deductions save more tax when rates are higher.

On October 12, an executive order was signed that, among other things, seeks to expand Health Reimbursement Arrangements (HRAs). HRAs are just one type of tax-advantaged account you can provide your employees to help fund their health care expenses. Also available are Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs). Which one should you include in your benefits package? Here’s a look at the similarities and differences: HRA. An HRA is an employer-sponsored account that reimburses employees for medical expenses.