As literature begins to pop up….we begin to see the story of the “Tax Cuts and Jobs Act”, and truth in the tax savings. I mentioned ( In my Video ) advantages as a married taxpayer, and I primarily introduced the the taxpayer’s lower tax brackets starting in 2018. Under $18,650. 10% ( First Threshold) ( 2nd Threshold) Income over the first threshold is 15% in addition to the $1,865. tax liability; up to $75,900. taxable Income. (3rd Threshold) builds on the first two and adds 25% to income over $75,900. up to $153,100. (4th Threshold) First Three plus income over $153,100. taxed at 28% up to $233,350. (5th Threshold) 33% up to $416,700. 6th and Final at 39.6% of excess over $470,700. plus $131,628. taxable liability. INCOME TAX ON INCOME OF ESTATES AND TRUSTS Income tax Rates for Estates and Trusts filing and paying tax are as follows, however, WITH ESTATE TAX ITSELF being fazed out. 15% on first $2,500., then 25% on excess but up to $6,000., 28% on the excess over up to $9,150., 33% on the excess over up to $12,500. and 39.6% on excess over $12,500. This is not beneficial to income beneficiaries if income is not immediately distributed to the beneficiaries as income that remains in the trust is taxed at the Trust level at these higher rates. REDUCTION OF CORPORATE TAXES. 15% on first 50K of Income. 25% on excess up to $75K 34% on excess up to 10M 35% on excess above 10M. Pass through entities like S Corps will pay a 20% reduction on taxable liability at the shareholders level ( Individual’s Tax Return). There are many more changes and additions in the Tax Act that I will continue to discuss as we get into 2018 and have time to can squeeze out more goodies during the 2017 tax season.

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