The Tax Cuts and Jobs Act of 2017 made a number of changes that are important to individuals, small businesses, and the advisors that assist them. Below, we briefly explore what these changes may mean for financial planners, investment planners, life insurance producers, employee benefit specialists, and small business accountants.

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1. Financial planners

The Tax Cuts and Jobs Acts of 2017 made three significant changes to how individual tax liability is determined that may be important to financial planners. First, the ordinary income tax rates that will apply to individuals changed beginning in 2018. (The tax rates for trusts and estates also changed). Second, the standard deduction has nearly doubled. Finally, income from pass-through entities is, in many cases, eligible for up to a 20 percent deduction.

These changes can be important for financial planners for several reasons. First, many clients have made their tax plans based on previously existing marginal rates. With new rates, it can be worthwhile for planners to review their clients' tax plans to see if the existing strategies need to be adjusted.

Similarly, the increase in the standard deduction can also change a client's tax-planning strategy. With the new standard deduction amounts, items that taxpayers have traditionally used to generate deductions, such as mortgage interest and charitable donations, may not be as valuable anymore. In fact, for clients who were only slightly above the old standard deduction levels, many of the existing deductions will offer no tax advantages at all.