Credit to Accounting Today, at their slideshow: Tax Reforms and 2019 Returns, where you can find more detail. If you need further information, please talk to your friendly accounting professional. The purpose of this post is to get you started and to provide a quick resource for 2018 planning.
| 1. Individual Rates | 7 new brackets – 10% to 37% |
| 2. Standard Deduction | $24K MFJ – $18K HOH – $12K S |
| 3. SALT – State & Local Taxes | Capped at $10K deduction |
| 4. Alimony | NON-deductible to payer/tax-free to the recipient (N/A in Indiana) |
| 5. Moving Expenses | ENDED – except for active-duty military |
| 6. Individual AMT | $109,400 MFJ – $70,300 S – $54,700 MFS – PO/$1M |
| 7. Child Tax Credit | $2,000 each qualifying child |
| 8. Kiddie Tax | Taxed at Trust and Estate rates |
| 9. Affordable Care Act | Mandate repealed effective 2019 |
| 10. Roth Conversions | Prohibited if previously from Roth |
| 11. Pass-Through Income | Section 199A – OWNER can deduct 20% (restrictions apply) |
| 12. Itemized Deduction PO | ENDED |
| 13. Medical Expenses | Floor lowered to 7.5% (from 10%) |
| 14. Charitable Contributions | Max at 60% of AGI – acknowledgements required |
| 15. COLA (Cost of Living Adjust) | Reduced – converting indexing to CPI indexing |
| 16. Like-Kind Exchanges | Real Estate ONLY |
| 17. Employee Awards | LIMITED tax free |
| 18. Student Loans | Discharges excluded from income @ death or disability |
| 19. Mortgage Interest Deduction | MAX $750K – Acquisition financing + improvements only |
| 20. Theft & Casualty Losses | Eliminated, except for Presidential disaster areas |
| 21. Misc. Sched A Deductions | ENDED |
| 22. Gambling Losses | Limited to extent of winnings |
| 23. Self-created Works | Removed from definition of Capital Assets |
Key to abbreviations: PO = Phase-out, MFJ = Married filing jointly, MFS = Married filing separately, S = Single
NOTE – Most tax law changes are set to expire in 2025. As usual, Congress can or extend these provisions at any time.
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