Tax Reform

The current 2017 tax reform laws that include tax rates and bracket changes, higher standard deductions, repeal of personal exemptions, and the reduction in Schedule A itemized deductions are due to expire after 2025 unless new laws are enacted.

This legislation also included some permanent laws for 529 Plans and alimony. Previously, funds from 529 Plans could only be used for college expenses but the new laws now allow tax-free distributions of up to $10,000 per student, per year for kindergarten through 12th grade education. Regarding alimony, payments are no longer deductible nor do they need to be included as taxable income by the recipient. This only applies to any new divorces in 2019 and later.