On December 20th, Congress passed the Tax Cuts and Jobs Act. This is the first significant change to the U.S tax code since 1986.
Here’s what you need to know in 2018:
- Tax deductions allowed on mortgage interest have been reduced from $1M to $750,000.
- Personal exemptions have been eliminated, but standard deductions rose from $6,300 (single) and $12,600 (married) to $12,000 and $24,000, respectively.
- State and local income and sales and property tax deductions are now limited to $10,000.
- Capital gain taxes changed for everything except home sales. If you meet certain requirements, a single filer can exclude up to $250,000 or married filing jointly up to $500,000. Click here to learn more.
- Reform reduces the corporate tax rate from 35% to 21%.
- The tax brackets have changed a lot. Those in lower brackets will see a decrease in taxes.
- Go here to see details about the new tax code, such as deductions for student loan interest or medical expenses.
Once again, I am no tax expert and above information is for your information only. To find out more about the impact on your tax obligation, you need to consult with your CPA or Tax filer.
