Here is the Final Tax Rate for 2018.
- 2018 Tax Rate Part I
- 2018 Tax Rate Part II
- Individual tax cuts: 7-rate structure, the same as exists now, with lower rates and revised bracket amounts. Top rate is 37%
- Standard deduction and personal exemptions: Along with the individual rate cuts, the standard deduction is effectively doubled to $12,000 for single filers and $24,000 for joint filers. Personal exemptions are completely eliminated.
- Child tax credit: Currently, the child tax credit is only $1,000 per qualified child, but the new law increases it to $2,000, with $1,400 being refundable.
- Corporations tax from 35% to 21%
- State and local taxes: You can deduct $10,000 in state and local property taxes or state and local income taxes or sales taxes or a combination
- Inherit up to $22 million tax-free
- "Pass through" companies get a 20% reduction (up to $315,000)
- Mortgage interest deduction gets smaller to $750k cap
- Individual AMT: The individual alternative minimum tax (AMT) remains, but the threshold would be tweaked to exclude any taxpayer with income under $500,000 or family below $1 million.
- Corporate AMT: The corporate AMT, which was preserved by the Senate bill, is repealed. This was a critical concession to businesses eligible for the research credit.
- Estate tax exemption: For 2018, the estate tax exemption can shelter up to $5.6 million of assets from estate tax. This generous exclusion is effectively doubled to $11 million.
- Not changing: student loan deduction, medical expense deduction, graduate student tuition waivers, Retirement accounts
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