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Showing posts from December, 2017

New Tax Law Summary and Implications for Individuals and Businesses

The following summaries highlight major changes in tax law. New Tax Law Topics for INDIVIDUALS 1. Standard Deduction and Personal Exemptions—The married filing joint standard deduction rises from $13,000 to $24,000, BUT the $4,050 personal exemption for each family member is gone. 2. Tax Rates—Seven brackets with rates between 10 and 37 percent replace the current range of 10 to 39.6 percent. Favorable rates for capital gains and qualified dividends remain. 3. Child Tax Credits—Each child under the age of 17 gains the family a $2,000 tax credit (up to $1,400 can be refunded even if the family has no tax). For 2017, these amounts are $1,000 and $1,000, respectively. 4. Itemized Deductions—Changes are coming for most taxpayers related to state tax payments, interest deductions and unreimbursed employee business expenses. · Write-offs for state income taxes and property taxes cannot exceed $10,00. · Interest paid on a home equity loan is no longer deductible. ·