The new tax law nearly doubles the standard deduction amount. Single taxpayers will see their standard deductions jump from $6,350 for 2017 taxes to $12,200 for 2019 taxes (the ones you file in 2020). Married couples filing jointly see an increase from $12,700 to $24,400 for 2019.
What is the name of the new tax law?
The Tax Cuts and Jobs Act of 2017 (TCJA) is a congressional revenue act of the United States signed into law by President Donald Trump which amended the Internal Revenue Code of 1986.
Are there going to be any tax changes for 2018?
A slew of updates from the IRS and major tax reform passed by Congress could significantly alter your situation for the 2018 tax year. The IRS unveils its changes each year, including cost-of-living adjustments for retirement savings and inflation changes for certain tax provisions.
What’s the new top income tax rate for 2018?
A new 37 percent top rate will affect individuals with incomes of $500,000 and higher. The top rate kicks in for married taxpayers who file jointly at $600,000 and up. The new tax law also includes changes to other tax brackets.
What was the income tax exemption for 2018?
The estate exemption doubles to $11.2 million per individual and $22.4 million per couple in 2018. The child tax credit has been raised to $2,000 per qualifying child, those who are under 17, up from $1,000. A $500 credit is available for dependents who do not get the $2,000 credit.
What are the new standard deductions for 2018?
Standard deductions. Those who are married and filing jointly will have an increased standard deduction of $24,000, up from the $13,000 it would have been under previous law. Single taxpayers and those who are married and file separately now have a $12,000 standard deduction, up from the $6,500 it would have been for this year prior to the reform.
