A Congressional negotiating team worked this week to reach a budget deal that included certain tax extenders, a repeal of ACA medical taxes, and retirement account changes. These were all additions to the annual spending bill that is necessary to keep the government open. The House and Senate have approved the measures, and President Trump has agreed to sign them before midnight Friday.
Throughout time, certain bills have been termed “extenders,” as they have only been approved a year or two at a time. The bills are perpetually re-approved by Congress as they expire.
However, since December 31, 2017, there have been several laws that have expired without the perpetual approval necessary, leaving dead-ends for many taxpayers.
Luckily, Congress is back on the bandwagon to resurrect several, but not all, of these “extenders.” The bad news? The extension only goes through the end of 2020, but most are retroactively extended from their expiration date.
The bill also includes reductions relating to the Affordable Health Care provisions. It also includes the repeal of the excise tax on medical devices, the “Cadillac Tax” on high-end employer health plans, and health insurance provider fees.
In addition, the provisions of The SECURE Act have also been included, which will change parts of the retirement landscape.
Some of the provisions of the Tax Cuts and Jobs Act of 2017 also received technical corrections, including changing the kiddie tax back to the parents’ tax rate, rather than using the estate and trusts tax rates.