In December, Congress passed a sweeping tax reform bill – the largest in 30 years. Now, with tax season in full swing, many Americans are wondering how exactly this will affect their 2017 taxes, which are due April 17, 2018.

If you’re feeling confused about the changes, you’re not alone.

According to a poll by Liberty Tax, nearly 78 percent of respondents said they were at least slightly concerned about how tax reform will affect their 2017 taxes.

Below is a brief breakdown of some of the most impactful changes, but you should talk to a tax expert to find out exactly how the “Tax Cuts and Jobs Act” will alter your filing.

“Taxes are personal and they differ based on individual’s situation. If a taxpayer wants to know how the new tax law will affect him or her, it’s best to sit down with a tax professional to discuss,” advises Brian Ashcraft, Director of Tax Compliance for Liberty Tax.

1. Income Brackets

Some of the farthest-reaching changes in the new law are to income brackets. Earnings are still broken down into seven different brackets (though with slightly different thresholds), but the rates were lowered in five of them.

So, a majority of taxpayers can expect to pay less in taxes this year. For example, a family of four that earns $73,000 a year can expect their tax bill to shrink by over $2,000.

Americans can also expect to see changes to their paychecks, says Kathy Pickering, Executive Director of The Tax Institute at H&R Block.

“New payroll withholding tables will be going into effect soon,” she explains. “This is an important time to review how these changes impact your paycheck so that you can make changes now, and not get surprised later.”

2. Medical Deductions

The legislation keeps this deduction in place, but makes one retroactive change.

For tax years 2017 and 2018, taxpayers can deduct medical expenses that exceed 7.5 percent of adjusted gross income.

“So, in a year where someone incurs high medical expenses, you may be able to take advantage of this change,” Pickering says.

3. Small Businesses

Changes to business-related taxes mainly affect “pass-through entities.”

These are mostly small businesses where the profits are passed directly to the owner, who then reports that income on their individual tax returns.

New regulations allow these owners to deduct 20 percent of the first $315,000 of earnings on a joint return.

“This is a great opportunity to reduce taxable income,” Pickering says.

“Most deductions are 1:1 for what you spend, but this deduction is an extra 20 percent off your profit even after deducting all your business expenses.”

However, it’s important to note that this deduction is unavailable for certain personal service businesses.

For employees wondering if they can reclassify themselves as “independent contractors” to take advantage of the deduction, “the short answer is no.

The rules around the definition of an employee haven’t changed, so in most circumstances, that won’t be an option,” Pickering explains.

4. Property Taxes

The law modifies taxes for homeowners in a few different ways.

First, it limits the amount of personal property, real estate, income and sales that can be deducted to $10,000 for joint filers ($5,000 for individuals).

Previously, these taxes were usually fully deductible.

Mortgage interest deductions are also impacted by the new rules.

Congress eliminated the deduction for home equity debt entirely and lowered the limit for new home mortgages to $750,000.

“These changes, along with the increased standard deduction, could mean some homeowners and residents of high-tax states may no longer benefit from itemizing deductions, or they may be able to deduct less than before,” explains Pickering.

5. State and Local Taxes

Federal lawmakers put a new $10,000 cap on deductions for state and local sales, income and property taxes, aka SALT.

“This item received plenty of news coverage because of how the deduction affects taxpayers in high tax states, where the SALT deduction may be higher than $10,000,” Ashcraft says.

While some taxpayers attempted to pay their 2018 state and local income taxes and then write the payment off on their 2017 tax return, this loophole doesn’t actually work.

“The law treats 2018 taxes as paid in 2018, regardless of when a taxpayer wrote the check,” Ashcraft says.

— By Carley Lintz, CTW Features