Tax Cuts and Jobs Act: What is it and How is it Impacting Expatriates? 

    Jan 15, 2018 @ 07:45 AM / by Jeremy Piccoli

    New York, New York as seen during an AIRINC cost of living survey.

    United States Tax Changes

    On December 22, 2017, President Trump signed the “Tax Cuts and Jobs Act” into law. The comprehensive tax reform act contains provisions that affect individuals and employers of globally-mobile employees (as well as corporations). This update focuses on individual taxation on employment income. The current bracket structure of seven individual tax rates is retained, but the top rate is lowered to 37%, and additional modifications have been made (see table below):


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    Significant Changes to Itemized Deductions

    Significant changes have been made to allowable itemized deductions. Individuals will only be able to deduct up to $10,000 combined for state and local income taxes, property taxes, and sales tax. Itemized deductions subject to the 2% floor (including tax preparation fees, investment expenses, and unreimbursed business expenses) have been repealed. The Act also eliminates the ‘Pease’ limitation on overall itemized deductions.

    Click below to see our Global Mobility Benchmark Report on U.S. tax changes:

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    Topics: International Tax, International Tax Summaries, Assignment cost estimator

    Jeremy Piccoli

    Written by Jeremy Piccoli

    Jeremy joined AIRINC in the fall of 2012 and is responsible for managing AIRINC’s International Tax Guide and tax calculator products, as well as consulting with clients. Prior to joining AIRINC, Jeremy spent more than 6 years with PricewaterhouseCoopers’ International Assignment Services practices in Hartford and Boston, providing tax compliance and consulting services to multinational companies and their expatriate population. He received his B.S. with a concentration in Accounting and a Master of Science in Accounting from the University of Connecticut. Jeremy is an Enrolled Agent, a federally licensed tax practitioner who specializes in taxation.