In the next 24-48 hours, we will know for certain the fate of the Tax Cuts and Jobs Act. With the House voting to pass the reconciled bill this morning*, the Senate is set to vote on it this evening. Barring any last-minute hiccups, it appears that change will be inevitable for the 2018 tax season.
Of particular concern for those of us living here in California (as you no doubt have heard) are the cap on itemized deductions for taxes paid (proposed limiting amount of deductible taxes for state and local income taxes and property taxes) and mortgage interest (proposed limiting amount of interest deductible based on a capped amount of mortgage acquisition debt, and eliminating deduction for home equity debt). It appears that the Conference Report has kept these changes to deductions, though at least leaning towards the less drastic measures of the Senate’s version of the bill.
Should the bill pass the Senate’s vote this evening, it’ll head to President Trump’s desk for signature soon after. Note that none of the bill’s changes will go in effect until the 2018, (meaning the changes will be seen when you file taxes in 2019 for the 2018 tax year).
Here are the major provisions of the conference committee report, which reconciles the differences between the House and Senate versions of the bill. The Conference Report column will be what is enacted as law should the Tax Cut and Jobs Act pass. All figures (both current law and conference report provisions) are for 2018. Most individual income tax changes will revert to current law after 2025 unless extended.
*NOTE: Due to some procedural errors it was announced this afternoon that the House would have to re-vote on the bill, as there were a few minor changes (i.e. nothing that would effect the overall scope of the major provisions) made to the Senate version. For the measure to become law, identical versions must pass both chambers of Congress.
From Tax Foundation