Over the July 4th long weekend, the new tax bill was signed into law and is now official!
A review has found some of the high points that we are about to mention, however, we need multiple more reviews and many more outside experts to garner a complete understanding. For the record while 994 pages initially was overwhelming…. this tax bill while complicated, and we may eat our words later, is much less daunting than many of the items that came down the pike during Covid.
Here are our initial high level thoughts-OH…BE CAREFUL what you read out there as we have already seen many incorrect items–
Ok here we go:
529– A lot of more liberal use of the college savings and higher education vehicle – We think this is fantastic and have long felt limitations by the 529’s usage, more to come on this of course
Estate taxes – These death taxes move up at the end of this year to $15 million each, and while there was much angst for sure about this, the end result is much less complicated and extends permanent for now – the 2017 estate tax rules pushing couples up to the $30 million level
Social Security – A federal credit tax-of $6000 – while we’re still getting our arms around this, it appears that there will be a credit within certain income limitations for Social Security – we’re still digging through the details on this (the confusion is where the 6000 will be applied on our return!)
SALT – Also known as the State And Local Tax thresholds move up again within certain income brackets, and this will lead to some interesting most likely planning techniques … still digging through the details
Again, much more to come soon and watch out as there are a lot of incorrect items being talked about in the various channels…. Rest assured, we are on it
Have a Great “New Tax Bill” abbreviated update day!
John A. Kvale CFA, CFP
AI Content Authenticity: AI created the Tax Bill Image. All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
