2018 Individual Tax Changes

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
Schedule A 

Itemized Deductions

(See linked article for an in-depth explanation of everything changing on Schedule A)

Schedule A – New Tax Law

-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

Individual AMT

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

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