| Topic | 2017 Tax Reform | Effective Date |
|---|---|---|
| Individual Tax Brackets | Still 7 brackets for individuals: 10%, 12%, 22%, 24%, 32%, 35% and 37% | Effective for years beginning after 12/31/2017 and before 1/1/2026. |
| Individual Alternative Minimum Tax (AMT) | Still applies but increases both - exemption amounts ($109,400 MFJ/$70,300 all others) - phase-out thresholds ($1 M MFJ/$500,000 all others) | Effective for years beginning after 12/31/2017 and before 1/1/2026. |
| Standard Deduction | $24,000 Married Filing Jointly $18,000 Head of Household Filers $12,000 Single Filers Additional deduction for elderly and blind unchanged. | Effective for years beginning after 12/31/2017 and before 1/1/2026. |
| Child Tax Credit | For qualifying children under 17 years at end of year: $2,000 per qualified child. $1,400 maximum refundable portion per qualified child. Phase out beings at $400,000 MFJ and $200,000 all others. | Effective for years beginning after 12/31/2017 and before 1/1/2026. |
| Medical Expenses | Deductible if in excess of 7.5% of Adjusted Gross Income and able to itemize deductions. | For tax years beginning after 12/31/16 and before 1/1/19. |
| Mortgage Interest | Interest is deductible on $750,000 home acquisition indebtedness for debt acquired after 12/15/17. For existing debt incurred before Dec. 15, 2017, the indebtedness limitation remains $1 million. Home Equity loan interest deduction is repealed. | Effective for years beginning after 12/31/2017 and before 1/1/2026. |
| State & Local Taxes | Allowed to claim a deduction up to $10,000 for aggregate of (1) state and local property taxes, and (2) state and local income/sales tax. | Effective for years beginning after 12/31/2017 and before 1/1/2026. |
| Overall Itemized Deduction Limit | Repealed | Effective for years beginning after 12/31/2017 and before 1/1/2026. |
| Affordable Care Act Individual Mandate Penalty | For those that do not have minimum essential health insurance coverage and are not otherwise exempted ,still in effect for 2017 and 2018, repealed beginning 2019. | Repealed beginning 2019. |
| Alimony | Payer will no longer be able to deduct alimony payments and payee will no longer include them in income. | For divorce decrees, separation agreements, and certain modifications entered into after 2018. |
| Job Expenses and Miscellaneous Itemized Deductions | All deductions previously subject to the 2% of adjusted gross income threshold will no longer be allowed. For example, this includes investment advisor fees and employee business expenses. | Effective for years beginning after 12/31/2017 and before 1/1/2026. |
| Federal Estate and Gift Tax | Doubled current exemption from estate and gift tax to $11,200,000. | Effective for years beginning after 12/31/2017 and before 1/1/2026. |