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New Tax Law Impacts 2018

OFFICIALLY CALLED THE TAX CUTS AND JOBS ACT, HERE’S A FEW HIGHLIGHTS:

 

  • Lower Individual tax rates of 10%, 12%, 22%, 24%, 32%, 35% and 37%.
  • Doubles the standard deduction to $12,000 for single filers and $24,000 for joint filers.
  • Exemptions eliminated.
  • Doubles the child tax credit (CTC) from $1,000 to $2,000; refundable portion to $1,400.
  • Mortgage deduction limited to interest paid on the first $750,000 of new acquisition debt.
  • No deduction is allowed for interest paid on home equity debt.
  • Deduction for state and local taxes is limited to $10,000 a year.
  • Repealed deductions for miscellaneous expenses subject to 2% of adjusted gross income.
  • Reduced corporation tax rate to flat 21%.
  • New Qualified Business Income Deduction.
  • And much more.