2017 Tax Law
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H.R. 1 (2018) |
Tax rates
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10%, 15%, 25%, 28%, 33%, 35% & 39.6% |
10%, 12%, 22%, 24%, 32%, 35% & 37% |
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Filing Thresholds
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MFJ/Qualifying Widow(er) $20,800.00 |
MFJ/Qualifying Widow(er) $24,000.00 |
HoH $13,400.00 |
HoH $18,000.00 |
Single $10,400.00 |
Single $12,000.00 |
MFS $4,050.00 |
MFS $0.00 |
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Standard Deduction
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MFJ $12,700.00 |
MFJ $24,000.00 |
HoH $9,350.00 |
HoH $18,00.00 |
All Others $6,350.00 |
All Others $12,000.00 |
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Personal Exemption
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$4,050.00 |
Repealed |
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Pass through income
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Taxed same as individual |
20% deduction |
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Kiddie Tax
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Unearned income in excess of $2,100.00 taxed at parents’ tax rate |
Unearned income taxed at trust & estate tax rates |
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Discharge of student loan debt
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Considered income unless meets certain exceptions |
Discharges during 2018-2025 not considered income if discharge was due to student’s death or total and permanent disability |
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Alimony
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Payor is allowed deduction from income and recipient reports as income |
Repeals deduction for alimony payments and inclusion in income for divorce/separation executed after 12/31/18 |
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Qualified higher education expense
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Includes expenses for tuition in connection with enrollment or attendance at a post-secondary school |
Includes expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school |
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Shared Responsibility Payment & Maintaining Minimum Essential Coverage
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Penalty if do not maintain minimum essential health insurance coverage |
Penalty if do not maintain minimum essential health insurance coverage |
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Child Tax Credit
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Up to $1,000.00 refundable credit |
$2,000.00 credit (refundable credit up to $1,400.00) |
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Education credits
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American Opportunity credit equals 100% of the first $2,000.00 of a student’s qualified education expenses plus 25% of the next $2,000.00. Maximum credit is $2,500.00 per student (40% refundable) |
American Opportunity credit equals 100% of the first $2,000.00 of a student’s qualified education expenses plus 25% of the next $2,000.00. Maximum credit is $2,500.00 per student (40% refundable) |
Lifetime Learning credit is a 20% non-refundable credit of up to $10,000.00 of qualified education expenses. Maximum credit $2,000.00 per return |
Lifetime Learning credit is a 20% non-refundable credit of up to $10,000.00 of qualified education expenses. Maximum credit $2,000.00 per return |
Itemized Deductions
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Phase out limits:
Single $261,500.00
MFJ or Qualifying widow(er) $313,800.00
MFS $156,900.00 |
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Can deduct medical expenses in excess of 7.5% of AGI |
Can deduct medical expenses in excess of 7.5% of AGI |
State and local taxes fully deductible |
Up to $10,000.00 ($5,000.00 MFJ) of state and local taxes are deductible for the primary residence and/or auto of the Taxpayer or spouse |
Mortgage interest $1 mil limit |
Mortgage interest $750,000.00 limit |
Home equity interest deductible |
Home equity interest no longer deduction |
Maximum charitable donations are 50% of adjusted gross income
Charitable donations of $250.00 or more require contemporaneous written acknowledgment |
Maximum charitable donations are 60% of adjusted gross income
Charitable donations of $250.00 or more require contemporaneous written acknowledgment |
Casualty losses from sudden events are deductible |
Casualty losses are only deductible if they are due to an event that has been declared a federal disaster |
Miscellaneous itemized expenses subject to 2% of AGI |
No miscellaneous itemized expenses |
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Section 179 Deduction
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Deduction limit $500,000 |
Deduction limit $1 mil |
Spending cap $2.0 mil |
Spending cap $2.5 mil |
50% bonus depreciation until 9/27/17 |
100% bonus depreciation |
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Estate & Gift Tax
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CT lifetime exclusion $2.0 mil |
CT lifetime exclusion $2.6 mil |
Federal exclusion $5.49 mil
Federal gift tax exclusion amount $14,000.00 per year per person |
Federal gift tax exclusion amount $15,000.00 per year per person |