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 the “Kiddie Tax”?

Effective January 1, 2008, so-called “Kiddie Tax” rules pertaining to a child’s investment income were changed. The age limit for this tax increased to include children who are 18 or younger and full-time students over 18 but under age 24. Investment income greater than a specified annual amount for a child affected by the kiddie tax is taxed at the marginal tax rate of the child’s parents.

Exceptions apply for children with paid jobs that provide a large portion of …

What is the Federal Estate Tax Exemption and Federal Estate Tax Rate?

The top estate tax rate for 2017 is 40% and there is a $5,490,000 exemption amount. Individuals can transfer up to $5,490,000 (indexed for inflation in the future) to heirs free from estate tax.

In addition, for married couples, if one spouse dies without using the full exclusion, the remainder can be added to the surviving spouse’s own exclusion. This provision provides a way for couples to take advantage of each other’s exemption, without having to create complicated trusts or …

Do I have to pay capital gain taxes on my required minimum distribution (RMD)?

To calculate your RMD, divide the amount of money held in your tax-deferred account(s) at year end by the number of years left in the account owner’s life expectancy and take out at least that amount. The amount of your RMD withdrawal is then added to your other taxable income for the year and taxed according to your marginal tax rate. Thus, the whole amount of a distribution or withdrawal from an IRA, 401(k), 403(b), or other tax-deferred retirement savings …

My mother passed away more than three years ago. The estate has long been settled. How long do I need to keep her financial records? Her house was passed on to her four children.

Which records to keep and how long during one’s lifetime depends on the type of record being considered.

See this page for guidelines: Organize Your Important Papers.

In regard to estate issues after someone’s lifetime, you should keep the estate financial records 7 to 10 years or more from the time the estate was settled (not the date of death). It is necessary to keep records for this length of time because, if income on the estate was underreported …

Can I roll over or transfer a fixed deferred annuity tax free?

Fixed annuities are similar to bank certificates of deposit (CDs) in that they earn a guaranteed interest rate for a set period of time. Two major differences are that fixed annuities are tax deferred and often provide a higher return than bank CDs. Yes, you can roll over or exchange a fixed annuity for a new annuity. Check to make sure that surrender charges don’t apply, however. Typically, a minimum deposit of at least $5,000 will be required. Investment experts …

What can new parents do if they have not yet received the Social Security number for their newborn child? Should we reapply?

Hospitals routinely provide the paperwork necessary to get a Social Security number issued to a newborn. Do not reapply unless you have first determined that the Social Security Administration needs you to do so.

To check on the status of the issuance of the baby’s Social Security number, you should contact your local Social Security office by searching on https://secure.ssa.gov/apps6z/FOLO/fo001.jsp or by calling the national hotline at 1-800-772-1213.

If the Social Security Administration requires you to refile and instructs you …