Tax Cuts & Jobs Act: Brief Overview

Serving Families Throughout Naples
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2018 Individual Income Tax Changes

  • Tax rates reduced and brackets increased

  • Standard Deduction “Doubled”

    • Married, filing jointly increased from $13,000 to $24,000

    • Single, increased from $6,500 to $12,000

  • Exemptions for taxpayer and dependents of $4,150 each – eliminated

  • Deduction for State & Local Taxes – limited to $10,000

  • Deduction for Mortgage Interest – mortgages limited to $750,000 vs. $1,000,000

  • Deduction for Interest on HELOC - eliminated

  • Deduction for Personal Property Loss – only available if President declares natural disaster

  • Miscellaneous Deductions (e.g. tax prep fees, investment expenses, employee biz expenses) – eliminated

  • Deduction for Alimony Payments – eliminated

  • Deduction for Medical Expenses – now deductible to extent exceed 7.5% of adjusted gross income (AGI) (previous limit was 10%)

  • Deduction for Charitable Donation – limited to 60% of AGI

  • Limitation on Itemized Deductions (Peas limitation) – eliminated

  • Changes to AMT rates and brackets

  • Child Tax Credit – doubled from $1,000 to $2,000 and phase out increased

    • Married, filing jointly increased from $110,000 to $400,000

    • Single, increased from $75,000 to $200,000

2018 Estate and Gift Tax Changes

  • Annual Exclusion – increased to $15,000

  • Exemption doubled from approximately $5,600,000 to $11,200,000 per person

View Full Summary of Tax Changes