The tax reform bill that Congress voted to approve Dec. 20, contains numerous changes that will affect individuals, as well as businesses large and small. The question everyone has is, “How does tax reform help me?”
The bill will be effective for the 2018 tax year and beyond. That means most taxpayers will not see the changes of the new law for about a year, when they file their 2018 taxes in April 2019, although wage earners may see differences to the amounts withheld from their paychecks before then as early as February.
How does this bill help owner-operators?
The real savings for owner-operators is for those who operate as a pass through company (an S corporation, partnership or multiple-member limited liability corporation). These are the types of businesses where the owners pay regular income taxes on the profits of their businesses when those profits pass through to their personal income tax return.