- Joint Filers: standard deduction of $24,000
- Single filers: standard deduction $12,000
- Head of household filer: standard deduction $18,000
- No personal exemptions
- Child tax credit $2,000 per qualifying child under 17
- Mortgage Interest Deduction: Applies to mortgage debt up to $750,000 on mortgages after 12/31/17. Previous mortgages grandfathered in. (itemizers only)
- Charitable contributions: allowable up to 60% of AGI (itemizers only)
- Medical expenses: deductible after 7.5% of AGI (itemizers only)
- State and local taxes: Income, sales and property taxes deductible to $10,000 max (itemizers only)
- Home Equity interest no longer deductible. (itemizers only)
- Casualty and theft losses (except those attributable to a federally declared disaster) (itemizers only)
- Unreimbursed employee expenses no longer deductible. (itemizers only)
- Tax preparation expenses no longer deductible. (itemizers only)
- Other miscellaneous deductions previously subject to the 2% AGI cap no longer deductible. (itemizers only)
- Moving expenses no longer deductible. (itemizers only)
- Employer-subsidized parking and transportation reimbursement no longer deductible. (itemizers only)
- College Expenses: Lifetime Learning Credit and Student Loan Interest Deduction stay the same. However, 529 Plan money can now be used for private school, tutoring for K-12, and other levels of education.
- Affordable Care Act – in 2019 tax year, no penalty for lack of insurance coverage; 2018 still has penalty
- Capital Gains–Short-term: capital gains taxed as ordinary income (affected by new income tax table)
- Capital Gains—Long term: (see chart)
The Joint Committee on Taxation estimates that 94% of households will claim the standard deduction in 2018, up from 70% in 2017.
Next time…corporate and business tax changes.
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