7 Tax Changes Your Members Need to Know About

  • Share:
marketing

7 tax changes your members need to know about

On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (TCJA), a tax reform package that many have called the largest piece of tax reform legislation in nearly 30 years. The TCJA brings with it a number of rule changes that will impact taxpayers on income earned in 2018, and many Americans — especially those in the middle class or with small businesses — may see higher refunds than normal.

Taxes can be a headache, and not all taxpayers fully understand how the new changes will affect them. The impact of the TCJA presents an excellent opportunity for credit unions to offer financial education in a meaningful and effective way. Many members already turn to their credit unions for assistance on financial matters.

Credit unions find themselves in a good position to not only guide members through how tax reform will impact their filing, but to also highlight other financial education tools that may be available.

However a credit union reaches their members with helpful tax information, the following seven changes should be included:

  1. Lower individual tax rates

    Many Americans will find themselves paying lower taxes for 2018 due to lower tax rates and updated thresholds. The seven current tax brackets will remain, but tax rates have lowered for both those earning the most (more than $500,000 a year for single filers, or $600,000 a year for married joint filers) and those earning anywhere from $9,526 to $200,000 a year for single filers, or $19,051 to $400,000 a year for those filing jointly. Members should also be aware of the big changes in the threshold for each bracket — certain taxpayers may find themselves in an entirely new bracket when filing their 2018 taxes.
     
  2. Increased standard deduction

    As a result of the TCJA, standard deductions are now nearly double what they were under the old rules. In 2017, single filers could claim a standard deduction of $6,350, while married couples could claim $12,700 and heads of households could claim $9,350.

    In 2018, Individuals can expect to claim a standard deduction of $12,000, married couples $24,000 and heads of households $18,000.
     
  3. Increased child tax credit

    Taxpayers expecting to claim a child tax credit can also expect an increase, while phase-out thresholds have also been adjusted to start at higher income levels — allowing more families to claim the credit. According to the new rule, the child tax credit increases to $2,000 per qualifying child under the age of 17 (double the $1,000 credit of 2017). The phase-out for the credit will also begin at $200,000 for single filers and $400,000 for married joint filers, a significant leap from the thresholds in 2017: $75,000 for single filers and $110,000 for married joint filers.  
     
  4. Elimination of dependent and personal exemptions

    Dependent and personal exemptions have been suspended by the TCJA.
     
  5. Elimination of some itemized deductions

    Itemized deductions have been reduced, with some eliminated altogether. This includes changes to medical and dental expenses, state and local taxes, home mortgage interest, charitable donations, job expenses, loss from theft, etc.

    Members should look into what important deductions they will no longer be able to claim for 2018.
     
  6. $10,000 cap on the deduction for state income taxes, sales, and local taxes and property taxes combined

    Taxpayers are now limited to a $10,000 cap on state, local and property taxes combined.
     
  7. A 20 percent deduction for “pass-through” entities (sole proprietorship, partnership, S corp.)

    Taxpayers who are self-employed, have a partnership or an S corp. may see lower tax liability and higher refunds due to new rule changes. The TCJA allows qualified businesses to deduct up to 20 percent of their income and increases the amount they can expense for business equipment from $510,000 in 2017 to an even $1,000,000 in 2018.

Alerting members to these important tax changes builds trust and deepens the relationship between member and credit union, opening other financial opportunities for the member with their credit union beyond tax season.

  • Share:


« Return to "Trends"
TrendScan logo
<< Back to Articles

Latest Trends

  1. Identifying Marijuana-Related Businesses
  2. Cut Through the Noise and Deliver Value Members Want
  3. 3 Key Factors for Creating Good Content
  4. Preparing a Transparency Communication Plan
  5. A Content Management System Will Make Your Life Easier
  6. Enterprise Risk Management — Where to Start
  7. Why You Need ERM in Your Strategic Planning
  8. Just How Distracted Are Consumers?
  9. Credit Unions Could Replace Predatory Lenders
  10. Opportunities and Risks of Banking for Marijuana-Related Businesses
  11. Are You Properly Rewarding Your CEO?
  12. The Quickest Way to Understand Enterprise Risk Management (ERM)
  13. The Easiest Way to Deliver Content for Employee Development
  14. What Borrowers Wished Credit Unions Knew
  15. What Is a DDoS Attack and Why Should Credit Unions Be Concerned?
  16. 5 Things Credit Unions Can Learn from Cyber Attacks
  17. Are You Ready to Adopt a Continuous Performance Management System?
  18. Consumer Attitudes Toward Digital Advertising
  19. Three ways to up your social media game
  20. Omnichannel Delivery: Banking Based On Members
  21. Is Your Credit Union Supported by the Four Pillars of Digital Banking?
  22. Keep content relevant, short, iterative and engaging
  23. Preparing for Compensation Transparency
  24. Experience Company Growth and Discovery with Employee-Driven Communication
  25. Learning Management Systems: What Credit Unions Should Consider
  26. Should You Still Be Concerned about ADA Website Compliance?
  27. 2 Big FinTech Goals for Credit Unions
  28. Bankers associations’ opposition to mergers does a disservice to member banks and to consumers
  29. Credit Unions Have an Opportunity to Help Their Members Through Tax Season
  30. How Useful Are Member Personas for Credit Union Marketing Teams?
  31. Become a Tax Resource for Members
  32. The Member Service Experience
  33. Popular DDoS Mitigation Methods in 2019
  34. The Quest for a One-Stop Shop Financial App
  35. Volunteer and Young Board Members Need Development
  36. Don't Get Snagged on ADA Compliance Requirements
  37. Building a Website with the User in Mind
  38. What's Hot in Performance Management Technology
  39. The Quickest Way to Find the Right (and Safest) CMS
  40. Americans' Lack of Financial Literacy Is an Opportunity for Credit Unions
  41. The Planning Process - Improved
  42. The Role of HR and Hiring Managers in the Candidate Experience
  43. Americans Trust Their Financial Institutions for Tax Advice
  44. Credit Union Compensation: Philosophy or Strategy?
  45. Anticipating Change with a Succession Plan
  46. Common Mistakes in Compliance
  47. The Performance Management Conundrum: Structure vs. Creativity
  48. Your Social Media Accounts Deserve Quality Content
  49. 7 Tax Changes Your Members Need to Know About
  50. Three Ways to Enhance Compensation Strategy for an Age-diverse Workforce
  51. 3 Ways Credit Unions Can Prepare for a Cyber Extortion
  52. Why HR Should Take Advantage of Employee Self Service
  53. Content Marketing: Well Worth the Effort
  54. Continuous Performance Management is Disrupting HR
  55. Consumer Appetites in Mobile Innovation
  56. Do You Know Why Payday Loans Are Used so Much?
  57. 3 Website Design Trends for 2019
  58. The Process of Crafting a Relatable, Moving Brand Story
  59. People Analytics: Bringing HR and Data Together
  60. 3 Succession Plans Your Credit Union Needs
  61. 6 Factors for Choosing the Right ESS System
  62. The Win-Win Results of Prize-Linked Savings for Credit Unions and Members
  63. You Know You Need an LMS — Now What?
  64. Achieving the Golden “Narrative Transport” in Brand Storytelling
  65. Is Your Executive Compensation Still Appealing?
  66. Content, Tools, and Channels to Capture Consumer Attention
  67. Leverage the Resources of Trusted Experts for Tax Season 2019
  68. Shifts and Trends to Know About in E-Learning
  69. What Credit Unions Should Do with Ambiguous ADA Standards
  70. 5 Guideposts to Measure Your Brand Promise Against
  71. The Importance of Creating Quality Content
  72. Remaining a Player in the New Home-Buying Experience
  73. Why You Should Invest in an Applicant Tracking System
  74. Predict the Future of Mortgage Lending with Analytics
  75. You Might Already Have the Solution to Your Current Talent Competency Gap
  76. The Website Audit Your Credit Union Needs
  77. Identify how chatbots will help you
  78. Selling Payments and Wealth Management Services
  79. The Best Compliance Training with New Topics You Will Need
  80. Conversational Commerce and the Rise of the Chatbot
  81. Build Up Membership Through Supportive Savings Programs
  82. Prioritizing the Credit Union Employee Experience
  83. What others are doing
  84. Prepare for integration
  85. The Secret to Future-Proofing Your Organization
  86. How to Identify What You Want in an ESS
  87. Optimizing Websites for Voice: What You Need to Know
  88. 4 Steps to Increased Social Media ROI
  89. Serving the Underbanked and Millennials
  90. Wanted: Apps for Clarification and Simplification
  91. A Simple Way to Unify Your Marketing Efforts
  92. Is Your CMS the Right Fit?
  93. Do you need a new compensation strategy for multigenerational staff?
  94. The Credit Union Advantage for the Digital Customer
  95. The Dream Team for Successful Online Customer Interactions
  96. Making Sure You Have the Right Leaders in the Right Seats
  97. Don't Undervalue Your Brand Promise
  98. Empowering Employees and HR with the Latest Technology
  99. Are Your Landing Pages up to Snuff?
  100. Caution: Customers Don't Always Ask for What They Want
  101. Are You Missing Out on the Power of Video?
  102. Keeping Up with Digital Lending Convenience
  103. How Credit Unions Can Formalize the Branding Process
  104. What the C-Suite Wants out of Social Media
  105. Credit Unions Can Compete with Shadow Banks
  106. How to Generate Content with Fewer Resources
  107. 3 Factors Impacting Credit Union Compensation Plans
  108. Underestimate the Onboarding Process at Your Peril
  109. Don't Underestimate the Power of Financial Education
  110. Leveraging Social Media for Member Engagement
  111. If Your Site Isn't Mobile Optimized, You're Losing Out
  112. 3 Brand Promises Credit Unions Can Learn From
  113. How Credit Unions Can Embrace Storytelling in Marketing
  114. Protect Your Credit Union with a Website Accessibility Response Plan
  115. Finding the Best Platform for HR Technology

Related Trends

  1. Keep content relevant, short, iterative and engaging
  2. Three ways to up your social media game
  3. What others are doing
  4. Credit Unions Have an Opportunity to Help Their Members Through Tax Season
  5. Leverage the Resources of Trusted Experts for Tax Season 2019
  6. Americans Trust Their Financial Institutions for Tax Advice
  7. Achieving the Golden “Narrative Transport” in Brand Storytelling
  8. The Process of Crafting a Relatable, Moving Brand Story
  9. Cut Through the Noise and Deliver Value Members Want
  10. Consumer Attitudes Toward Digital Advertising
  11. Content, Tools, and Channels to Capture Consumer Attention
  12. Just How Distracted Are Consumers?
  13. 3 Key Factors for Creating Good Content
  14. Become a Tax Resource for Members
  15. Americans' Lack of Financial Literacy Is an Opportunity for Credit Unions
  16. Build Up Membership Through Supportive Savings Programs
  17. 7 Tax Changes Your Members Need to Know About
  18. The Importance of Creating Quality Content
  19. The Win-Win Results of Prize-Linked Savings for Credit Unions and Members
  20. Content Marketing: Well Worth the Effort
  21. Your Social Media Accounts Deserve Quality Content
  22. How Credit Unions Can Formalize the Branding Process
  23. How Credit Unions Can Embrace Storytelling in Marketing
  24. 4 Steps to Increased Social Media ROI
  25. What the C-Suite Wants out of Social Media
  26. Leveraging Social Media for Member Engagement
  27. Are Your Landing Pages up to Snuff?
  28. Don't Underestimate the Power of Financial Education
  29. If Your Site Isn't Mobile Optimized, You're Losing Out
  30. 3 Brand Promises Credit Unions Can Learn From
  31. How to Generate Content with Fewer Resources
  32. 5 Guideposts to Measure Your Brand Promise Against
  33. How Useful Are Member Personas for Credit Union Marketing Teams?
  34. A Simple Way to Unify Your Marketing Efforts
  35. Are You Missing Out on the Power of Video?
  36. The Member Service Experience
  37. The Dream Team for Successful Online Customer Interactions
  38. Don't Undervalue Your Brand Promise
  39. Selling Payments and Wealth Management Services

Industry insights
to your inbox!

Subscribe