As of February 2018, the Tax Cuts and Jobs Act has taken effect. The Act, which was signed into law by President Trump on December 22, 2017, will change how much most Americans pay in income tax, as well as the tax structure for corporations. The changes that affect the individual taxpayer will be in effect through the end of 2025. These changes are likely confusing for individuals and corporations alike, so let's try to clear it up.
People hear about the new tax system and their first thought is probably "how does it affect me?"
There will still be seven tax brackets, but the percentage paid in most of those brackets will change. The lowest tax bracket will stay the same, at ten percent. Those making $200,000-$500,000 as single filers, or married couples making $400,000-$600,000 may experience an increase. The 2017 rate for this bracket was 33-35 percent. With the act in place, the rate will stabilize at 35 percent. Every other tax bracket will see a decrease of 2-3 percent.
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