Tax Cuts and Jobs Act Resources

Image of the US individual income tax return form - form 1040

The Financial Security for All Community of Practice has compiled the following list of informational resources related to the Tax Cuts and Jobs Act:

 Tax Cuts and Jobs Act Legislation

Background Information: Land-Grant Universities

Background Information: Other 

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What is a Person’s Marginal Tax Rate?

A marginal tax rate (also known as marginal tax bracket) refers to the percentage of the last dollar that someone earns (from their total annual income) that goes to taxes. There are currently seven federal marginal tax rates: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6% in 2017.

For further information on marginal tax rates, based on taxable income and tax filing status, visit http://njaes.rutgers.edu/money/taxinfo/.

We would like your feedback on this Personal Finance Frequently Asked Question.…

What is the Capital Gains Exclusion for the Sale of a House?

Single taxpayers can exclude up to $250,000 of capital gains on the sale of a home, and married taxpayers filing jointly can exclude $500,000.

Taxpayers are eligible for the exclusion if they have owned and used a home as their main home for a period aggregating at least two years out of the five years prior to its date of sale. The exclusion is allowed each time that you sell a primary residence but no more than once every two …

Can You Make a Tax-Free 529 Plan Contribution Larger Than the Annual Gift Tax Exclusion?

Although the IRS typically allows people to gift no more than $14,000 a year (2017 figure) to another person without a federal gift tax, you can contribute up to $70,000 to a 529 plan in one year. A special tax law allows you to aggregate five years of the allowable $14,000 annual gift-tax exclusion (5 x $14,000 = $70,000) to jump-start a 529 plan.

While you will not be able to make any further gifts to the 529 plan for …

Can You Split a Federal Income Tax Refund Between a Direct Deposit and a Paper Check?

No. You cannot split your refund between a direct deposit and a paper check. According to IRS tax refund procedures, you can either opt for the safety, security, and speed of direct deposit to one, two, or three different accounts, or you can request your refund via a paper check, but you cannot combine the two refund methods.

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Why Should I File an Income Tax Return if I Don’t Owe Any Money?

Even if you don’t owe any taxes, you may qualify for tax credits that would result in a refund.

For example, the Earned Income Tax Credit (EITC) and Child Tax Credit both provide refundable tax credits. This means that, if the amount of a refundable tax credit is more than the amount of taxes due, the difference will be given back to you as a tax refund.

By not filing a tax return, an individual is missing out on the …

What is the Standard Deduction for Income Taxes?

The standard deduction is the amount that taxpayers can subtract from their adjusted gross income if they choose not to itemize deductions. The amount of the standard deduction is indexed annually for inflation. In 2017, the standard deduction is $6,350 for single tax filers and $12,700 for married couples filing jointly.

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If I Am Taking the Earned Income Tax Credit, Can I Also Claim the Child Tax Credit on My Income Taxes?

If you qualify for both credits, you can take both credits. You may also be able to claim the Child and Dependent Care Credit. Each of these tax credits has its own rules.

See IRS Publication 17 for general information on filing your taxes, Publication 596 for the Earned Income Tax Credit, Publication 972 for the Child Tax Credit, and Publication 503 for Child and Dependent Care Credit for information on who can deduct each type of credit. To receive …

Do You Have to Pay Income Tax on a Cash Gift?

Generally, cash or property that you receive as a gift or inheritance is not included in your income. Recipients of gifts do not need to declare them on their income tax return, regardless of the amount.

However, if a cash gift later produces income, such as dividends and capital gains, that income will be taxable and you will receive a 1099 form to indicate the taxable amount.

Donors can give cash gifts up to a certain amount each year without …

The Affordable Care Act and Income Taxes

Barbara O’Neill, Ph.D., CFP®

Extension Specialist in Financial Resource Management and Distinguished Professor

Rutgers Cooperative Extension

oneill@aesop.rutgers.edu

 

For the first time ever, during the 2014 federal income tax year, health insurance became intertwined with income taxes. More than 75% percent of Americans with year-long health insurance provided by an employer, private insurance policy, or other non-Marketplace health insurance source simply have to check the “Full-year Coverage” box on Line 61 of the 1040 tax form. For others, the process of …