Tax reform legislation: What you should know
Want to know how the 2017 tax reform bill impacts you? Here are a few things to keep in mind.
As Congress works to finalize the largest tax reform bill in more than 30 years, there are a few things to keep in mind. Most importantly, the bill isn’t final yet. House and Senate negotiators are meeting this week to iron things out. That process, which they have stated they hope to complete by Christmas, requires them to resolve a number of differences between the House and Senate-passed versions.
While a number of these issues are still being debated, here are the current differences affecting individuals in the House and Senate bills:
• Different rate structures (the House has four rates, the Senate retains 7)
• Different top rates (the House is at 39.6%, the Senate is at 38.5%)
• The alternative minimum tax (the House eliminates it, the Senate retains it with a bigger exemption amount)
• And the list goes on
Both bills contain significant changes to what’s deductible, and to the size of the standard deduction.
Also under discussion are provisions that are the same under both pieces of legislation. For example, both the House and the Senate proposed a 20% corporate tax rate but we know that current negotiators may be considering an adjustment to this rate to account for deletions to other provisions as a way to account for revenue adjustments. However, the House-Senate Conferees have given no public indication as yet about what they may decide.
Finally, there’s the issue of the duration of the tax changes. The House proposal would allow certain credits to expire in 2022, while the Senate proposal would eliminate many of the individual tax reductions after 2025.
We realize this may be a lot to take in, so here’s the bottom line: TurboTax has your back. We are closely monitoring progress and will stay on top of developments as they occur. If there are changes to tax law, TurboTax will be up to date. And rest assured you can file your 2017 tax returns with complete confidence. We’ve got you covered.
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David Williams, Chief Tax Officer, Intuit & Executive Director, Intuit Tax and Financial Center
David Williams helps lead Intuit’s tax businesses, including TurboTax, the largest do-it-yourself tax software solution in the US, as well as Intuit’s professional products used by more than one hundred thousand tax firms. David also works across Intuit businesses, and closely with Intuit’s Government Affairs department, to shape their tax strategies, engage with external stakeholders and partners, and support industry initiatives.
Prior to joining Intuit, David had a long career in tax policy and tax administration on Capitol Hill and at the IRS. He served fourteen years as a US Senate staffer working primarily on tax issues for the Senate Budget Committee and for Senator Bill Bradley. During his thirteen years at the IRS he held a number of positions including Chief Communications Officer, Director of the Earned Income Tax Credit office, Director of Electronic Tax Administration and Director of the Return Preparer Office.
David holds a Master of Public Policy degree from the John F. Kennedy School of Government at Harvard University, and a BS in Business Administration from Colorado State University.