Tax Law changes


Tax Cuts and Jobs Act

Tax Reform is here. The Tax Cuts and Jobs Act has enacted some major changes in tax law for Federal Tax returns.

Here are a few of the changes that might affect you:


  • Tax rate changes: Most of the individual tax bracket tax rates have been reduced and the corporate rate is now a flat 21%.

  • Standard deduction increases:  The standard deduction almost doubles. However, there are no more  personal exemption deductions. This may help you or hurt you.

  • Increased child tax credit: the credit is increased from $1,000 to $2,000 per child.

  • New dependent credit: A non-child dependent can receive a new credit of $500.

Disappearing Deductions

Beginning with 2018 you will no longer be able to deduct:

  • Property tax and state income tax above $10,000.
  • Moving expenses.
  • Unreimbursed employee expenses (such as, union dues, travel, etc.).
  • Mortgage interest beyond interest on $750,000 of acquisition debt, if you purchase a new home.
  • Mortgage interest paid on equity debt.
  • Personal and dependency exemptions.

Some new benefits for individuals

  • Medical expense: Medical expense AGI threshold will temporarily drop to 7.5% for 2019.
  • AMT: Alternative minimum tax threshold is increased, so fewer middle-income taxpayers will be subject to it.
  • Estate tax: The estate tax exclusion has nearly doubled.