1. What the New Tax Laws
Mean to You

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

12. Changes Will Sunset
All tax cuts expire January 1, 2026

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

15. Tax Rates Lowered
Married filing jointly
Single

16. 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

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

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

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

20. But, personal exemptions have been eliminated.

21. + $1600 increased deduction
Single
Former: $6350 standard deduction + $4050 personal exemption = $10,400 New: $12,000 standard deduction
+ $1600 increased deduction

22. - $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

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

24. - $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

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

26. 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

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

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

29. 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

30. 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

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

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

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

34. What the New Tax Laws
Mean to You