HOW THE NEW 2017 TAX CUTS AND JOBS ACT WILL IMPACT YOU

♠ Posted by Marc J. Soss in 2017 TAX CUTS AND JOBS ACT,2018 estate tax,2018 federal estate gift tax exemption,2018 federal income tax rates,2018 income tax deductions,income tax 2018,personal exemption

On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act of 2017 (the “Act”) that was passed by Congress on December 20, 2017. The Act will take effect on January 1, 2018 and will make important changes to existing tax laws and impact you. INCOME, ESTATE, GIFT, AND GENERATION-SKIPPING TAXATION: Estate, Gift, and Generation-Skipping Tax Exemption. The Act doubles the individual federal estate, gift, and generation-skipping tax exemptions from $5,000,000, adjusted for inflation ($5.49 million in 2017) to $10,000,000, adjusted for inflation ($11.0 million in 2017). The...

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THE U.S. SUPREME COURT RULES ON DIVORCE AND MILITARY DISABILITY BENEFITS

♠ Posted by Marc J. Soss in disabled U.S. veterans,division of military disability benefits,divorced spouse,federal law,military disability benefits,military disability compensation,military divorce

The May 15, 2017, U.S. Supreme Court ruling in Howell v. Howell is a unanimous victory for disabled U.S. veterans. The decision upheld federal law that military disability compensation is not divisible in divorce proceedings. The Court concluded a state court should not be permitted to “subsequently increase, pro rata, the amount the divorced spouse receives each month from the veteran’s retirement pay in order to indemnify the divorced spouse for the loss caused by the veteran’s waiver.” Justice Breyer reversed the Arizona Supreme Court and concluded that under federal law state courts lack...

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CHANGE TO CONNECTICUT RETIREMENT PLAN WITHHOLDING REQUIREMENTS

♠ Posted by Marc J. Soss in changes to Connecticut law,Connecticut Estate Planning,Connecticut retirement plan withholding,Connecticut retirement planning

Effective January 1, 2018, the State of Connecticut will require certain pension and annuity payors to withhold Connecticut state income tax from distributions made from an employer retirement plan (pension, annuity, profit-sharing plan, stock bonus, deferred compensation plan, individual retirement arrangement, endowment, or life insurance contract). The withholding requirement applies to public and private entities that (1) maintain an office or transact business in Connecticut and (2) make taxable payments to resident individuals. No change in the law is made for nonresiden...

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