Tax Day 2018: How Trump Tax Plan Will Impact Individuals Filing This Year

The GOP tax bill that President Donald Trump signed into law in December largely affects next year’s tax return, but there are some elements that already apply and taxpayers should be aware of in light of this year’s filing deadline on Tuesday, April 17.

Related: When Are 2018 Taxes Due? How to File on Time, Request an Extension

Here are the few provisions that kick in for the 2017 tax return:

Tax brackets

Trump’s tax reform changed tax brackets in January of this year, meaning tax cuts to individuals in nearly all of the seven brackets.

Medical deductions

The new tax law still allows taxpayers who itemize their deductions to deduct medical expenses that exceed a certain percentage of their adjusted gross income. Previously, medical expenses exceeding 10 percent of adjusted gross income could be deducted, but that has been lowered to 7.5 percent, according to TurboTax.

Business assets

The tax law allows taxpayers to expense business property in the first year—such as computers, copy machines and other equipment that can depreciate—to an increased amount of up to 100 percent. The property had to be purchased and used after September 27, 2017. Newly qualifying property includes television, film and live theater productions, released after that date. In addition, used items acquired by the taxpayer can be expensed.

Claiming personal casualty losses

Taxpayers claiming personal casualty losses can do so retroactive to 2016 under the new tax law. The scope was broadened so that any taxpayer whose principal residence was in a federally declared disaster area can receive a tax break. It can be claimed through the standard deduction with limitations.

Changes to Obamacare

Trump and Republicans with the GOP tax bill succeeded in nixing the Obamacare mandate that assesses a penalty on taxpayers if they are not enrolled in health insurance. But that provision does not go into effect until the 2019 tax return, according to Fortune.

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