What the New Tax Laws Mean to You

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Reminder! For specific tax questions and tax advice, please contact a qualified tax advisor.

Changes Will Sunset All tax cuts expire January 1, 2026

What the New Tax Laws Mean to You Tax brackets lowered Deductions and exemptions change Child tax credits improve Other changes

Tax Rates Lowered Married filing jointly Single

How Bracket Incomes Will Change Over Time Formerly based on traditional CPI Under new legislation will be Chained CPI – has historically been lower than traditional This does not sunset

What the New Tax Laws Mean to You Tax brackets lowered Deductions and exemptions change

Standard Deductions Increase $24,000 $12,700 $12,000 $6,350 2017 2017 2018 2018 Married filing jointly Single

So What? More taxpayers won’t bother to itemize. (Now, 70% don’t itemize).

But, personal exemptions have been eliminated.

+ $1600 increased deduction Single Former: $6350 standard deduction + $4050 personal exemption = $10,400 New: $12,000 standard deduction + $1600 increased deduction

- $6,500 decreased deduction Single two kids Former: $6350 standard deduction + $12,150 personal exemptions = $18,500 New: $12,000 standard deduction - $6,500 decreased deduction

Married Former: $12,700 standard deduction + $8,100 personal exemptions = $20,800 New: $24,000 standard deduction +3,200 increased deduction

- $4,900 decreased deduction Married Former: $12,700 standard deduction + $16,200 personal exemptions = $28,900 New: $24,000 standard deduction two kids - $4,900 decreased deduction

What the New Tax Laws Mean to You Tax brackets lowered Deductions and exemptions change Child tax credits improve

Child Tax Credit $2,000 $1,000 $1,400 is refundable Income phase out limits increased… Single increased from $75,000 to $200,000 Married increased from $110,000 to $400,000 Offsets loss due to elimination of personal exemption $2,000 $1,000 2017 2018

Child Tax Credit Offsets Loss 10% tax bracket 12% tax bracket 22% tax bracket $2000 $2000 $2000 $650 $780 $1430

What the New Tax Laws Mean to You Tax brackets lowered Deductions and exemptions change Child tax credits improve Other changes

Homeowners Limits deduction for mortgage interest on loans up to $750,000, down from $1.0 million, for money borrowed after 12/14/17. New $10,000 limit federal tax deduction for state taxes owed for income and property taxes Home equity loan deduction eliminated

AMT Changes Sunset Provision What this means to you Opportunities Former AMT: $55,400 of income exempt (single) $86,200 of income exempt (married) New AMT: $70,300 of income exempt (single) $109,400 of income exempt (married) AMT Changes Sunset Provision What this means to you Opportunities Threats

Education Savings 529s can be used for K-12 private school education $10,000 annual limit

Retirement Savings 401(k) loan payoff at termination extended to tax filing deadline No more Roth recharacterizations Lower income today… Roth a better deal

Other Stuff Miscellaneous itemized deductions subject to 2% AGI floor eliminated.. Tax prep Unreimbursed employee business expenses Safety deposit fees Etc.

What the New Tax Laws Mean to You