by Blair Butters | Jul 20, 2018 | Uncategorized
The Tax Cuts and Jobs Act (TCJA) is now in full force and has made significant changes to the U.S. tax code for both individuals and businesses since it was signed by President Trump on December 22, 2017. Though we’ve been living with the major reform for several months, the uncertainty surrounding the changes and their effects are still highly prevalent. We’ve put together a guide comparing the new and old laws of the top 8 provisions to help flesh out the uncertainty of the reform and to help you understand how the TCJA could impact your take-home pay and tax refund this year. [Related Article: New Federal Law Brings Changes to Business Taxes] 1. Individual Tax Rates The TCJA has kept the seven-bracket structure, however, the income tax rates have decreased. Comparable rates are as follows: 2. Individual Alternative Minimum Tax Old: The AMT exemption amount was $54,300 for single filers and $84,500 for married taxpayers filing jointly. New: The AMT exemption amounts increased to $70,300 for single filers and $109,400 for married taxpayers filing jointly. 3. Standard Deduction & Personal Exemptions A standard deduction is the portion of income that is not subject to tax and can be used to reduce a taxpayer’s tax bill. A personal exemption is the amount taxpayers can deduct from their income for every taxpayer and most dependents claimed on their return. Old: Single taxpayers were allowed a standard deduction of $6,350 and $12,700 for married taxpayers filing jointly. Personal exemptions of $4,050 were allowed for each family member. New: Single taxpayers are allowed a standard deduction of $12,000 and $24,000 for...
Recent Comments