2018 Individual Income Tax Changes
Tax rates reduced and brackets increased
Standard Deduction “Doubled”
Married, filing jointly increased from $13,000 to $24,000
Single, increased from $6,500 to $12,000
Exemptions for taxpayer and dependents of $4,150 each – eliminated
Deduction for State & Local Taxes – limited to $10,000
Deduction for Mortgage Interest – mortgages limited to $750,000 vs. $1,000,000
Deduction for Interest on HELOC - eliminated
Deduction for Personal Property Loss – only available if President declares natural disaster
Miscellaneous Deductions (e.g. tax prep fees, investment expenses, employee biz expenses) – eliminated
Deduction for Alimony Payments – eliminated
Deduction for Medical Expenses – now deductible to extent exceed 7.5% of adjusted gross income (AGI) (previous limit was 10%)
Deduction for Charitable Donation – limited to 60% of AGI
Limitation on Itemized Deductions (Peas limitation) – eliminated
Changes to AMT rates and brackets
Child Tax Credit – doubled from $1,000 to $2,000 and phase out increased
Married, filing jointly increased from $110,000 to $400,000
Single, increased from $75,000 to $200,000
2018 Estate and Gift Tax Changes
Annual Exclusion – increased to $15,000
Exemption doubled from approximately $5,600,000 to $11,200,000 per person