On December 22, 2017, President Donald Trump signed the Tax Cuts and Jobs Act into law. Most of the new provisions go into effect on 2018's taxes. So you will file your 2017 taxes with little or no changes.
The new tax plan cuts the corporate tax rate from 35 percent to 21 percent beginning in 2018. Additionally, the top individual tax rate will drop to 37 percent. The law overall cuts income tax rates, doubles the standard deduction, and eliminates personal exemptions. The corporate tax cuts are permanent but the new individual rates will expire at the end of 2025.
Personal Income Rates
How does this all affect you? Here's a breakdown based on a rough estimate of your annual salary. Employees will first see changes in their February 2018 withholdings.
The Act keeps the same seven tax brackets for individuals. The 2017 rates will be reinstated in 2026 under this law. The new plan helps higher income families the most in terms of receiving the biggest tax cuts.
The Tax Foundation has said that those in the 20 to 80 percent income range would receive a 1.7 percent increase in after-tax income. Meanwhile, people in the 95 to 99 percent range would receive a 2.2 percent increase.
Business Rates
The Act has more changes for business than it does for individuals. The new corporate tax rate at 21 percent is the lowest since 1939. The United States has one of the highest business tax rates in the world, but most corporations don't pay that much. The effective rate, when you take into account deductions and loopholes, is only around 18 percent.
The Act also raises the standard deduction for pass-through businesses to 20 percent. This deduction will also expire in 2026. A pass-through business includes sole proprietorships, partnerships, limited liability companies, and S corporations. This classification also includes real estate companies, hedge funds, and private equity funds. The deductions go away for service professionals when their income reaches $157,500 for singles and $315,000 for joint filers.
Another feature of the Act will allow companies to repatriate the $2.6 trillion they collectively hold in foreign cash stockpiles. They will pay a one-time tax rate of 15.5 percent on cash and 8 percent on equipment. Most famously, Apple holds $252 billion in foreign cash. This new tax rate will allow the company to bring it back to the US without a substantial tax hit. A similar “tax holiday" in 2004 provided little boost to the economy, according to the Congressional Research Service. The repatriated cash was distributed to shareholders over employees.
Changes To Deductions
The standard deduction for individuals has been doubled. Meaning, you can claim many more deductions that you could in the past. A single filer's deduction increased from $6,350 to $12,000. Married and joint-filer deductions increased from $12,700 to $24,000. These will also revert back to the 2017 level in 2026.
The Act also eliminates personal exemptions and most itemized deductions. This usually includes moving expenses, except for members of the military. Someone paying alimony can no longer deduct the payments, but those receiving them can. Deductions for charitable contributions, retirement savings, and student loan interest remain unchanged. But you can't take these as well as the standard deduction. The new law limits deductions on mortgage interest to the first $750,000 of the loan. Taxpayers can also deduct up to $10,000 in state and local taxes, but must choose between property taxes and income or sales taxes. The Act repeals the Obamacare tax for people without insurance in 2019.
- How the GOP Tax Bill Affects You | Investopedia ›
- Tax changes are coming Monday: Here's when it will affect you ›
- Trump's Tax Plan: How It Affects You. Tax Chart ›
- Want to know how the Trump-Republican tax bill will affect you? It's ... ›
- Tax cuts and jobs act: How they could affect these 5 households ›
- What the New Tax Law Means for You - Barron's ›
- How a New Tax Plan Could Affect Those With Student Debt - The ... ›
Every time payday rolls around, I’m on top of the world. Jeff Bezos-level rich - even though I’m anything but. And then somehow the very next day, rent is due.
The cycle continues. The next payday, bills for my apartment. I find myself without a surplus of savings since I just moved and newly-furnished my apartment completely.
Even more terrifying is the looming presence of the holiday season. Halloween’s officially over and before we know it, hello Thanksgiving…and then there’s Hanukkah, Christmas, New Year’s. It’s insane.
I’ve been feeling very British lately. Not in a Union-Jack-obsessed, “Keep Calm and Carry-On” way. I went through that phase in 2012 with everyone else… no thank you. And it’s not even a surge of patriotism catalyzed by the Queen dying — I’m firmly team Diana and team Meghan.
Now that fall is officially here, the holidays will sweep in and I’ll have to contend with the fact that I won’t be spending them with my family in the UK. I went home to London earlier this year, so there’s not much left in my travel budget for another trip across the pond. A few domestic jaunts might be in my future, but the closest I’ll get to England this winter is watching Love Island and Love, Actually.
So in that spirit, I’ve been filling my days with content from my favorite Brits. I’m listening to all the old British rock bands I grew up listening to, patiently awaiting the new Arctic Monkeys album, and rewatching anything with Michaela Coel in it. I even shipped myself an order of British Baked Beans, so you know it’s dire.
I’ve also been watching British YouTubers like Grace Beverley — my favorite. Generally, I only go on YouTube to watch Vogue Beauty Secrets and AD Open Door videos. But I’m so glad I stumbled on Grace. Her content is a mix of London lifestyle (what lured me in), relatable entrepreneurship, and mindful productivity. I’m not a hustle-and-grind-girlboss, but as a creative person in a 9-to-5, I need all the help I can get to stay plugged in. So, the video “how to be really really really productive without getting overwhelmed” changed my approach to WFH.
Grace outlines her own productivity method: the to-do table. Instead of making a simple to-do list, she divides her tasks into a table that anyone can follow. As someone who’s survived with to-do lists for years, I recently implemented Grace’s method, and it’s revolutionized my workdays.
how to be really really really productive without getting overwhelmedwww.youtube.com
I follow her routine to a tee. Here’s how it works:
Essentially, she divides her daily responsibilities into four categories: quick ticks, tasks, projects, and non-negotiables.
- Quick Ticks: Actions that take less than 5-minutes
- Tasks: To-do’s that take up to 30-minutes. Probably don’t take too much brain energy.
- Projects: Long-term list items. These help guide your priorities, even if you’re not crossing them off in one day.
- Non-negotiables: Pick 3 things each day that you must get done. This is how you’ll truly measure success.
With everything written down and sorted, next address your schedule. Meetings, deadlines, and time blocks — whatever works best for you. Write it down. Then make a pact with yourself to stick to them.
This way of categorization provides a roadmap for prioritizing your day — making you far more productive. Have you ever spent the entire day on small tasks and then suddenly realized you hadn’t moved the needle on any task? Or do you spend way too much time on tasks that aren’t a priority? No more. With your non-negotiables laid out, you know what to laser-focus on and what to dedicate energy towards.
Also, it pays to know your working style. I’m not a morning person. Yet, I have to be up and at ‘em super early. So, first thing in the morning, I march through my Quick Ticks to warm me up. I set a time limit, so I can knock out some easy wins which is totally inspiring. Then I move on to bigger things without lingering on emails or admin. For others, it might be more helpful to tackle the big things with all that early-in-the-day brain power earlier.
Grace has great tips on avoiding overwhelm and burnout. My favorite is taking more intentional breaks rather than scrolling through social media. I call this scrolling “productive” because I’m “coming up with pitches.” Oh, the lies we tell ourselves. It’s more productive in the long run to giving my brain a break with non-screen related stimuli.
Grace’s solution? Set a timer to read a real, an actual book. I’ve never thought of this. It’s a genius way to check off some books on my TBR and kickstart my creativity. After reading a good book, I’m completely inspired to write. So having books near my desk helps me step away from the computer during my lunch break for an actual reset. (And yes, the current books I’m reading are by British authors: Assembly by Natasha Brown, and Love in Color: Mythical Tales from Around the World, Retold by Bolu Babalolu.)
In my pursuit of switching out my WFH set-up and getting my life together, I’ve engineered my workstation for success. With my new WFH essentials and Grace’s productivity technique, I’m revitalized for work — despite the fall blues and my melancholy about the pending holidays.
Here are the things getting me hyped for work and helping me crush my Grace Beverley-inspired to-do tables — no lists in sight:
Southwest Airlines Sale 2022
Pack your bags — Southwest Airlines is having a major sale! Fares are as low as $59 one-way if you book by October 3rd.
This end-of-summer super sale is a game-changer for your travel plans through the end of the year. Summertime travel gets all the glory. But why not take advantage of your long weekends, holidays, and PTO this fall. You’ll be surprised at how much travel you can fit in. Keep the fall/winter season exciting with domestic trips that give you all the excitement without breaking the bank. All thanks to Southwest.
Here’s the breakdown:
Where can you go?
You’ll find discounted tickets to and from most airports. Sale fares apply to cross country travel, and even Hawaii, Mexico, and the Caribbean! Whether you’re visiting a new city or revisiting your last beach vacation, this sale has fares to make your travel dreams come true.
What do the fares cover?
Southwest Airlines has multiple fare tiers, each with various benefits. Wanna Get Away fares start at $59, while Wanna Get Away Plus fares start at $89. You can also find great deals on Anytime fares, which offer priority boarding and express lanes. Then there’s Business Select tickets for a luxe experience at an affordable price point.
Do you have to be a Southwest Rapid Rewards member?
You may think these sale fares are too good to be true. Is there a catch? Do you have to be a Southwest Rapid Rewards member to access them? You’re in luck — anyone can attain these fares for a limited time.
But, insider tip, you should consider signing up for Southwest Rapid Rewards. With a free sign up, you earn points and miles with each trip you take. And with this sale, each dollar you spend on these discounted tix can stretch super far until you eventually earn free travel. The only thing better than a sale is free stuff.
So pack your bags and brace yourself for those chaotic airport lines. Everyone’s hopping on this deal so get on it. Don’t miss out — grab your sale tickets by October 3rd!
I’ve been browsing the Southwest Airlines site, checking out flights and dreaming.