-Standard Deductions have been increased.
Filing Status 2018 Standard Deduction
Single |
$12,000 |
Married Filing Jointly |
$24,000 |
Married Filing Separately |
$12,000 |
Head of Household |
$18,000 |
|
|
-Medical Expense Deduction has been reduced to 7.5% of your AGI down from 10% of your AGI.
-Charitable Contributions (individual) has been increased from 50% to 60% of AGI.
-Exemptions have been removed. This was a deduction of each member of your household.
-2018 Tax Rates and Brackets https://www.atlantacpas.com/tax-rates
-Combine Mortgage Interest phaseout deduction decreased to $750,000. The previous $1 million phase is grandfathered in if you mortgage was originated before December 15, 2017.
-Child Tax Credit is increase from 1,000 to 2,000 and the phase out at level has increased from 110,000 to 400,000 for MFJ & from $75,000 to 200,000 for single
-Other Deductions That Are Disappearing
-Federal Withholding (W-4) Check https://apps.irs.gov/app/withholdingcalculator/.
**This calculator checks your Federal ETR (Effective Tax Rate) **
**Keep in mind that your withholding percentage is a marginal tax rate, which is divided four ways between Federal, Social Security, Medicare and State**
**Example; if you are withholding 20% of tax from your paycheck your Federal ETR will be closer to 13-15%**
For a full list of Tax Reform Basics for Individuals please visit https://www.irs.gov/pub/irs-pdf/p5307.pdf