This Table shows how the new tax law will change certain credits and deductions for individual taxpayers.
|Tax Area (Individuals)||
2017 Tax Law
|2018 Tax Reform|
|Family Tax Credits||Child Tax Credit is $1,000 per child (under 17)
Phaseout begins at $110,000
Additional Child Tax Credit (up to $1,000 refundable)
|Child Tax Credit is $2,000 per child (under 17)
$500 credit for non-child dependent (i.e. college student)
MFJ Phaseout begins $400,000
Additional Child Tax Credit (up to $1400 refundable)
|Standard Deduction||$6350 Single, $9350 H-O-H, $12,700 MFJ||$12000 Single, $18,000 H-O-H, $24,000 MFJ|
|Personal Exemption||$4050 per person in household||Eliminated|
|(See linked article for an in-depth explanation of everything changing on Schedule A)||-Caps combined state income tax and property tax deduction at $10,000
-Keeps current mortgage interest deduction on existing mortgages but caps the deduction on future loans at $750,000.
-Eliminates current deduction for interest on home equity loans
-Eliminates all job expense and certain miscellaneous expense subject to 2% AGI thresh-hold
Alternative Minimum Tax
|Exemption: Single or HOH – $54,300
MFJ – $84,500
Only affects certain high-income households.
|Exemption: Single or HOH – $70,300
MFJ – $109,400
Essentially, the new law increases exemption and phaseout thresholds so that fewer people are subject to AMT. Only affects higher income households
|Estate Tax||5.49 million per individual, 10.98 million per couple||11.2 million per individual, 22.4 million per couple|
|Moving Expenses||You could deduct moving expenses as an above the line deduction IF:
-Your employer did not reimburse you
-Your new work location was at least a certain distance from your former home
-You had worked a minimum amount of time in the first one or two years after your move.
|Moving expense deduction is eliminated|