6 Facts Nobody Knows About The 2018 Trump Tax Reform
The Trump Tax bill has affected individuals and businesses both in the USA and abroad. It’s still being dissected. Check out these facts:
Eliminates health ins tax penalty in 2019: The 12/22/2017 tax bill signed into law eliminates the tax penalty for individuals who fail to maintain (MEC) minimum essential coverages as of 1/1/2019.
The Employer Mandate still applies: Applicable large employers (ALE) will continue to face penalties for failure to offer affordable coverage providing minimum value to their full-time employees.
Individual Mandate Penalties are still in force in 2018: Individuals who go without health coverage for 3-month or longer in 2018 will still have to pay a penalty (unless they qualify for an exception)!
More options are available for 529 monies: Families can withdraw up to $10,000/year tax-free to use for public, private or religious elementary or secondary school expenses
Home Equity Loans (HELOC’s) may no longer be deductible: HELOCs (home equity lines of credit) and 2nd mortgages are ONLY deductible if used for “substantial improvements” to the home and the combination of the 1st mortgage and HELOC or 2nd mortgage doesn’t exceed the new cap of $750,000. (previously $1.1m)
Pro athletes can no longer deduct agent fees in 2018: The NFL explains it by saying since players pay agents directly and agent fees are not deducted from game checks, they will no longer be deductible under the Trump Tax Reform.