As you are now keenly aware, with the passage of the Tax Cuts
and Jobs Act (TCJA) in December 2017, the individual and business
tax codes have been dramatically overhauled, with many changes
effective in 2018 and beyond. Below we highlight several
easy-to-apply tax planning opportunities for 2018.
Take Advantage of Lower Tax Rates
In general, the tax rates in 2018 are lower than in 2017, with
the highest bracket being reduced from 39.6 percent to 37 percent.
In addition, many of the new lower rates are effective for
taxpayers at higher income levels than in 2017. In particular, as
demonstrated in the chart below, married filing jointly taxpayers
would see lower marginal tax rates in 2018 for incomes up to
$400,000 and over $600,000. Single taxpayers would see lower
marginal tax rates for incomes up to $200,000 and over
$500,000.
