New tax bill

You're referring to the latest tax bill! There have been several significant tax bills passed in recent years, so I'll try to provide an overview of the most recent ones.

Tax Cuts and Jobs Act (2017)

The Tax Cuts and Jobs Act (TCJA) was signed into law by President Donald Trump on December 22, 2017. This bill made significant changes to the US tax code, including:

  1. Lower corporate tax rates: The top corporate tax rate was reduced from 35% to 21%.
  2. Individual tax cuts: The bill provided tax cuts for individuals, including a reduction in the top marginal tax rate from 39.6% to 37%.
  3. Standard deduction: The standard deduction was doubled to $12,000 for single filers and $24,000 for joint filers.
  4. State and local tax (SALT) deduction: The SALT deduction was capped at $10,000.
  5. Alternative Minimum Tax (AMT): The AMT exemption was increased, and the phase-out threshold was increased.

Further Consolidated Appropriations Act (2020)

The Further Consolidated Appropriations Act (FCAA) was signed into law on December 20, 2019. This bill made some changes to the tax code, including:

  1. Repeal of the individual mandate: The FCAA repealed the individual mandate penalty, which was part of the Affordable Care Act (ACA).
  2. Charitable contributions: The bill allowed for a 25% increase in charitable contributions for 2020.
  3. Business expense deduction: The bill increased the business expense deduction from 50% to 100% for qualified property placed in service in 2020.

American Rescue Plan Act (2021)

The American Rescue Plan Act (ARPA) was signed into law on March 11, 2021. This bill made some changes to the tax code, including:

  1. Child Tax Credit: The ARPA increased the Child Tax Credit from $2,000 to $3,000 for children under 18 and from $4,000 to $6,000 for children under 17.
  2. Earned Income Tax Credit (EITC): The bill increased the EITC for low-income workers.
  3. Unemployment benefits: The ARPA extended and expanded unemployment benefits for individuals who lost their jobs due to the COVID-19 pandemic.

These are just a few of the most recent tax bills. If you have specific questions or concerns about how these changes might affect your taxes, I recommend consulting with a tax professional or financial advisor.