NPCs and FA Using CY18 and Beyond

Paying for College
1

Just wondering, after the new tax law is implemented, which will be relevant for FA starting in SY 2020-2021, do you think the NPCs will be more accurate for self-employed parents? Most of the deductions are eliminated, so there’s no issue about “adding back” typical deductions that self-employed or small-business owners take.

Another issue is that taxable income will be higher for families that used to have deductions that exceeded the new standard deduction.

Any professionals care to weigh in?

2

The new tax law doesn’t make large changes to business deductions (just a few small ones). The large changes are to personal deductions on Schedule A. Most of those are irrelevant to FA anyway.