Which of the following changes was made in the Tax Cuts and Jobs Act for able accounts?
Asked by: Vilma Beatty | Last update: August 18, 2025Score: 4.5/5 (53 votes)
What changed with the Tax Cuts and Jobs Act?
The Tax Cuts and Jobs Act ("TCJA") changed deductions, depreciation, expensing, tax credits and other tax items that affect businesses. This side-by-side comparison can help businesses understand the changes and plan accordingly.
What changes were made to ABLE accounts by the Tax Cuts and Jobs Act of 2017?
The Tax Cuts and Jobs Act of 2017
Increases the amount of contributions allowed to an ABLE account and adds special rules for the increased contribution limit. Allows an ABLE account's designated beneficiary to claim the saver's credit for contributions to the account.
What are the changes to the ABLE account?
At this time, to be eligible for an ABLE account, a person's disability must have begun before the age of 26, although an ABLE account can be opened at any age. On January 1, 2026, the ABLE Age Adjustment Act will expand eligibility to include people who have a disability that began before age 46.
What changes did the Tax Cuts and Jobs Act make to the AMT effectively?
The 2017 Tax Cuts and Jobs Act (TCJA) included provisions that significantly reduced the impact of the alternative minimum tax (AMT). The TCJA enacted a higher AMT exemption, raised the income level at which the exemption begins to phase out, and repealed or scaled back some of the largest AMT preference items.
The Tax Cuts and Jobs Act of 2017 Explained - Changes Begin in Tax Year 2018
What are the changes to the AMT?
Proposed changes
Increasing the basic AMT exemption amount from $40,000 to the amount that corresponds to the lower threshold of the fourth federal income tax bracket, which is indexed annually to inflation and will be $173,205 in 2024. This basic exemption will be available to individuals and certain trusts.
What deductions were eliminated from the Tax Cuts and Jobs Act?
The TCJA eliminated deductions for unreimbursed employee expenses, tax preparation fees, and other miscellaneous deductions. It also eliminated the deduction for theft and personal casualty losses, although taxpayers can still claim a deduction for certain casualty losses occurring in federally declared disaster areas.
What are the benefits of the ABLE account?
An ABLE Account is a tax-advantaged savings account that allows individuals with disabilities to save and invest money for disability-related expenses (called Qualified Disability Expenses, or QDEs) without losing eligibility for certain means-tested public benefits programs, such as Medicaid, Supplemental Nutrition ...
What is the tax form for the ABLE account?
Some ABLE account owners receive IRS Forms 1099-QA or 5498-QA from their State ABLE program. These forms show ABLE account contributions and disbursements for the tax year. The information on the forms is in your year-end ABLE account statements, so do not hold up filing your return if you do not receive these forms.
What are the new ABLE account rules for adults?
You can be over the age of 26, but the disabling condition must have occurred before your 26th birthday. ABLE Age Adjustment Act passed as part of the Omnibus Spending Bill. This bill will increase the age of ABLE eligibility from “before age 26” to “before age 46” effective 01/01/2026.
What change did the Tax Cuts and Jobs Act make to the tax treatment of dividends received by US corporations from foreign subsidiaries?
TCJA overhauled the taxation of foreign affiliates, ending the deferral system and replacing it with an array of new tax provisions: Participation exemption system: Under this new system, most dividends received by US multinationals from their foreign affiliates (i.e., repatriated) are not taxed by the US.
Does ADHD qualify for an ABLE account?
Intellectual Disability: May be reported as mild, moderate, or severe intellectual disability. Psychiatric Disorders: Schizophrenia, Major depressive disorder, Post-Traumatic Stress Disorder (PTSD), Anorexia Nervosa, Attention Deficit/Hyperactivity Disorder (AD/HD), Bipolar Disorder.
What impacts did the 2017 Tax Cuts and Jobs Act have on the Affordable Care Act?
The law makes multiple changes to the taxation of individuals and corporations. It also repeals the Affordable Care Act's (ACA's) individual mandate penalties, which will erase some of the gains in insurance coverage achieved since implementation of the ACA's coverage expansions.
Which of the following did the tax cut and Jobs Act do in 2017?
TCJA made many large changes across multiple areas of the tax code, including most infamously reducing the corporate tax rate, increasing the standard deduction, and increasing the applicable exclusion amounts for estate taxes.
Will social security be taxed in 2025?
Current law shortfall in long-range actuarial balance is 3.50 percent of payroll and in annual balance for the 75th year is 4.64 percent of payroll. Starting in 2025, tax Social Security benefits in a manner similar to private pension income.
What type of income is interest considered?
Interest and dividends are a type of gross income and should be included in your total income.
What can ABLE accounts not be used for?
Legal fees. Basic living expenses. Funeral and burial expenses. Other expenses to enhance your child's quality of life.
How much can a disabled person have in savings?
Under federal law, any individual who accumulates savings of $2,000, or $3,000 for a married couple, becomes ineligible for assistance. (A person's home, car, household goods, and certain financial resources like burial funds are excluded.)
What is the tax form for direct deposit?
Form 8888 is now only used to split your direct deposit refund between two or more accounts or to split your refund between a direct deposit and a paper check. For more information, go to https://treasurydirect.gov/research-center/ faq-irs-tax-feature/. Continuous-use form.
How much can you keep in an ABLE account?
Save up money without losing benefits.
Many benefits programs have resource limits, but: You can have up to $100,000 in your ABLE account and keep getting Supplemental Security Income (SSI) benefits, as long as you meet all other SSI rules.
What is the best bank for disabled people?
Bank of America been named as a leader in supporting people with disabilities.
What is the full form of able?
Association of Biotechnology Led Enterprises - ABLE is a not-for-profit pan-India forum that represents the Indian Biotechnology Sector. It was launched in April 2003, after industry leaders felt a need to form an exclusive forum to represent the Indian Biotechnology Sector.
What did the Tax Cuts and Jobs Act change?
Major elements of the changes include reducing tax rates for corporations and individuals, increasing the standard deduction and family tax credits, eliminating personal exemptions and making it less beneficial to itemize deductions, limiting deductions for state and local income taxes and property taxes, further ...
How do tax cuts hurt the economy?
Tax rate cuts may encourage individuals to work, save, and invest, but if the tax cuts are not financed by immediate spending cuts, they will likely also result in an increased federal budget deficit, which in the long-term will reduce national saving and raise interest rates.
What is the beat tax cut and Jobs Act?
The base erosion and anti-abuse tax, known as BEAT, was enacted as part of the Tax Cuts and Jobs Act of 2017 to discourage U.S. and foreign corporations from avoiding tax liability by shifting profits out of the U.S. BEAT is a minimum tax rate of 10% that applies to certain multinational corporate taxpayers that make ...