Tax Cuts and Jobs Act
Temporarily creates 7 new tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
Increases Standard Deductions: Single $12,000, Married Filing Jointly $24,000, Head of Household $18,000.
Repeals deductions for personal exemptions.
Increases Child Tax Credit to $2,000 ($1,400 refundable), subject to phase out.
Eliminates all 2% itemized deductions (bottom of Schedule A)
Limits Itemized Deductions for non-business taxes to $10,000 for SALT (State And Local Taxes) and property taxes.
Limits home mortgage interest deduction for home loans executed after December 14, 2017 to $750,000 of acquisition indebtedness and disallows interest on home equity loans unless used to buy, build, or substantially improve the taxpayer’s home.
Enacts 20% deduction for domestic qualified business income available to individuals (sole proprietors), partners, LLC members, S corporation shareholders, trusts and estates.
Permanently enacts a flat 21% corporate tax rate.
