2018 Tax Reform: Everything That Didn't Change
At the end of 2017, the government passed major tax reforms, also called the Tax Cuts and Jobs Act (TCJA). This act includes some changes that may impact your tax returns, but no need to stress (more than usual). While tax season is a pain, many key parts of the filing process aren’t changing, making your life a little easier. Here’s what you can expect to look the same.
1. Filing Statuses
Whether you’re single, married filing jointly, married filing separately, or the head of the household, all tax filing statuses (and how they’re defined) are the same.
2. Common Income Adjustments
Typical adjustments you’re used to seeing at tax time, like the self-employed health insurance deduction, are sticking around.
Stride FAQ: Are my business expenses still deductible? Yes! You can still deduct expenses like mileage, phone bills, and office supplies to reduce your taxable income. Check out the full list of expenses on our Stride Tax app if you’re not sure which ones you can deduct.
3. Tax Credits
The TCJA did not remove any tax credits, like the Earned Income Tax Credit or the Premium Tax Credit, which helps pay for your monthly health insurance payments.
Stride FAQ: Can I still qualify for a subsidy for my health insurance premiums? Yes! Depending on your income, you can still apply for and receive subsidies that help lower the monthly price of your health insurance.
4. The Affordable Care Act
While the health insurance penalty has been removed, much of the subsidized health insurance process looks the same. If you qualify for a subsidy, everything will still be balanced out at tax time; the IRS will compare your income to the original estimate on your application, and if there’s a discrepancy between the income you estimated on your application and what ends up on your tax return, you’ll either (1) pay money back if your subsidy was too big, or (2) receive a refund if your subsidy was too little.