This report covers the U.S. Bipartisan Budget Act of 2018, which includes certain tax-related measures and retroactively extends through the 2017 tax year 33 “expiring provisions” or “tax extenders” that expired on December 31, 2016, many of which apply to individuals.
On February 9, U.S. President Donald Trump signed into law a short-term government spending and budget bill, the Bipartisan Budget Act of 2018 (the “Act”).1 The Act includes certain tax-related measures and retroactively extends certain other tax measures that had expired at the end of 2016.
Although the Act makes changes that apply to the 2017 tax year, it was not passed until 2018, making it impossible for taxpayers to take its provisions into account in doing 2017 year-end tax planning. However, the Act’s extenders will bring some welcome relief to those who are able to take advantage of its provisions in preparing their 2017 tax returns.
The Act retroactively extends through the 2017 tax year 33 “expiring provisions” or “tax extenders” that expired on December 31, 2016. Of these 33 expiring provisions extended by the Act, the following apply to individual taxpayers:
Additionally, the Act contains a number of other tax-related provisions that had originally been included in various versions of the recently enacted tax reform legislation,2 but had been removed prior to passage of the final bill, which was signed into law into December 2017. Among these provisions are as follows:
Previous legislation3 provided for temporary tax relief and incentives to victims of Hurricanes Harvey, Irma, and Maria. The Act provides similar temporary tax relief and incentives to victims of the 2017 wildfires in California. In part, the recently enacted legislation:
1 Bipartisan Budget Act of 2018, H.R. 1892, (PDF 700 KB) 115th Congress, (February 9, 2018).
2 An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, H.R. 1, (PDF 490 KB) 115th Congress, (December 22, 2017), now Public Law No.115-97. For prior coverage, see GMS Flash Alert 2017-192, December 22, 2017.
Taxation of International Executives covers relevant income tax and social security rates, together with the key aspects of the tax legislation relating to expatriate employees working in various countries. In addition, planning opportunities, capital taxes, and local taxes are also covered. Taxation of International Executives: United States, the annual publication from KPMG International, has been updated to account for U.S. tax law in effect as of December 31, 2017. This edition also includes provisions affecting individuals introduced by the Tax Cuts and Jobs Act (now Public Law No. 115-97). To access the publication – in a convenient and easy-to-use .html format – click here.
For other countries’ Taxation of International Executives, click here.
The above information is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.
The information contained in this newsletter was submitted by the KPMG International member firm in the United States.
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