Wolters Kluwer came out with their annual inflation adjustment projections which reflect several increased thresholds and ceilings you should be aware of. The IRS is expected to release the official amount later this year.
Of particular note:
1) The trust and estate maximum income tax bracket (37%) is reached at $12,750, up from $12,500.
Taxpayers will be able to file federal income taxes starting next filing season on a new postcard-sized Form 1040. The IRS officially released the draft 2018 Form 1040 on June 29th.
Draft Form 1040
According to the IRS, the new base Form 1040 will be finalized this summer. The IRS plans to work with the tax community to finalize the form. “This early release is part of our standard process to invite stakeholder input into draft forms before finalizing them,” the IRS spokesperson told Wolters Kluwer.
By Paul Czepiga
We wrote not too long ago about some Connecticut estate tax changes that occurred due to legislation passed in October 2017. That legislation tied the Connecticut gift and estate tax exemption to the federal exemption amount.
The federal exemption amount was, at the time that Connecticut tied it self to it, $5.49 million. Unexpectedly in December 2017, just two months after Connecticut’s change, as part of President Trump’s tax overhaul, the federal exemption amount suddenly increased to $11.18 million.
States, including Connecticut, are looking for loopholes to soften the impact of a new $10,000 cap on the state and local tax deduction also known as SALT. And the IRS wants to put a stop to local governments using creative workarounds.
In the meantime, in response to the reform, Connecticut legislature passed a new law making several state and local changes. Two of its provisions are designed as workarounds to SALT:
Chances are, that you are at least somewhat familiar with the new provisions in the Connecticut budget bill.
But do you know about the increased income threshold for the Social Security income tax deduction?
Or the new organ donation expense deduction?
Connecticut Estate Planning Attorneys Blog