If you are a business owner, the 20% pass-through deduction for those with qualified trade or business income (Section 199A) could be a big deal. This includes income earned by sole proprietorships, LLCs, partnerships, and S corporations.
Under the new law, taxpayers with pass-through businesses will be able to deduct 20% of their pass-through income. In other words, if you own a small business and it generates $100,000 in profit in 2018, you'll be able to deduct $20,000 of it before the new 2018 tax rates are applied.
However, people in professional service industries are restricted. Any trade or business involving the performance of services in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, or any trade or business where the principal asset of the business is the reputation or skill of 1 or more of its employees will have phase-out income limits that apply.
These income limits are set at $157,500 for single filers and $315,000 for pass-through business owners who file a joint return.
Again, these are just a few general tax law changes that could affect the majority of college-bound families. Of course, there is a myriad of additional tax changes not covered here, such as the Earned Income Tax Credit, Alternative Minimum Tax (AMT), Miscellaneous Deductions, and many others. Go deeper and read the entire bill.