This is the second article on the Impact the New Tax Law, (Tax Cuts and Jobs Act) and the impact it will have on individuals tax payers. It eliminates or limits many of the current tax breaks. In addition, much of the tax relief for individual taxpayers is only temporary as the changes will sunset after 2025. These are some of the changes:
1- Reductions in the individual income tax rates- ranging from 0-4 percentage points- 10%, 12%, 22%, 24%, 32%, 35%, and 37%;
2- Near doubling of the standard deduction to $24,000 for married couples filing jointly, $18,00.00 for head of households, and $12,000.00 for singles and married couples filing separately;
3- Elimination of personal exemptions;
4- doubling of the child tax credit;
5- elimination of the deduction for interest on home equity loans;
Please be advised that you should check in with your CPA/ tax adviser, or if you are going through a divorce, your attorney in order to properly prepare, and in some cases tax advantage of these upcoming tax changes.
This post was written by Thomas Taranto