Moving Cost Tax Deduction

If you move in 2018, you will no longer be able to deduct moving costs unless you are in the armed forces. Also if you receive employer reimbursements for moving expenses, it will now be taxable income. This change came about in the Tax Cuts and Jobs Act effective 1/1/2018.

IRS interest rate on late income tax payments

The current rate is now 5% (annual basis). It increased from 4% on April 1, 2018. The rate can change each quarter.

Trust Tax Rate

Trusts (form 1041) are taxed at rates from 10% to 37%. However the 37% rate kicks in at taxable income over $12,500. The government is trying to encourage the current distribution of income from trusts by having the tax rate so high. The kiddie tax on children's unearned taxable income will also now be based on the trust rates instead of the parents' tax rate.

The New Corporate Tax Rate

C corporations now pay at flat rate of 21%. In 2017 the top rate was 35% and the first $50,000 in taxable income was 15%. Most large public companies will now pay at the lower rate. In order to level the playing field between C corporations and pass through entities such as partnerships and S corporations, the new tax reform act allows a 20% deduction of qualified business income.