trump tax law

2018 Tax Changes

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.

For heads of households, the deduction will be $18,000, up from $9,550.

Personal exemption

The personal exemption has been eliminated with the tax reform bill. **

Items eliminated:

  • 2% business deduction on the schedule A, which included: professional attire, moving expense, travel, union dues, home office use, entertainment, and tax fees

Tip-I am advising some of my clients who are claiming 4 or more deductions or exemptions to change their W4 to 0 exemptions. ***Before making any adjustments to your own personal filings, please consult with your tax adviser**

Child tax credit

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.