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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 0%, 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.
A deduction is still allowed for interest paid on home equity debt, but now the proceeds must be used to buy, build, or substantially improve your home.
Deduction for the sum of state and local taxes plus sales and property taxes is limited to $10,000 a year.
Repealed deductions for miscellaneous expenses subject to 2% of adjusted gross income.