Farm Progress

New tax law has much give and take

A provision in Tax Cut and Jobs Act of 2017 may lead to much higher insurance premiums.

Forrest Laws

July 23, 2018

The Tax Cuts and Jobs Act, the law passed on a party-line vote and signed by President Trump last December, has a lot of give and take when it comes to individual taxpayers.

Gone, for example, is the personal exemption of more than $4,000 per taxpayer.

The law replaces that with a doubling of the child tax credit from $1,000 to $2,000, according to Dr. Kristine Tidgren, director of the Center for Agricultural Law and Taxation, at Iowa State University.

“The tax credit is for children 16 and younger,” she noted.

Taxpayers are also getting a surprise when they try to sign up for individual health care policies – significantly higher costs or a requirement that results in their having to pay back the premium subsidy for the Affordable Care Act.

She discussed those changes in a wide-ranging presentation at the Mid-South Agricultural and Environmental Law Conference at the University of Memphis.

About the Author(s)

Forrest Laws

Forrest Laws spent 10 years with The Memphis Press-Scimitar before joining Delta Farm Press in 1980. He has written extensively on farm production practices, crop marketing, farm legislation, environmental regulations and alternative energy. He resides in Memphis, Tenn. He served as a missile launch officer in the U.S. Air Force before resuming his career in journalism with The Press-Scimitar.

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