INDIVIDUAL
|
Topic |
Current Law |
Final Bill |
Rates[1] - Single |
10% -- $0 - $9,325
15% -- $9,326 - $37,950
25% -- $37,951 - $91,900
28% -- $91,901 - $191,650
33% -- $191,651 - $416,700
35% -- $416,701 - $418,400
39.6% -- over $418,400 |
10% -- $0 - $9,525
12% -- $9,526 - $38,700
22% -- $38,701 - $82,500
24% -- $82,501 – $157,500
32% -- $157,501 - $200,000
35% -- $200,001 - $500,000
37% -- over $500,000 |
Rates – Married Filing Jointly & Surviving Spouses |
10% -- $0 - $18,650
15% -- $18,651 - $75,900
25% -- $75,901 - $153,100
28% -- $153,101 - $233,350
33% -- $233,351 - $416,700
35% -- $416,701 - $470,700
39.6% -- over $470,700 |
10% -- $0 - $19,050
12% -- $19,051 - $77,400
22% -- $77,401 - $165,000
24% -- $165,001 – $315,000
32% -- $315,001 - $400,000
35% -- $400,001 - $600,000
37% -- over $600,000 |
Rates – Married Filing Separately |
10% -- $0 - $9,325
15% -- $9,326 - $37,950
25% -- $37,951 - $76,550
28% -- $76,551 - $116,675
33% -- $116,676 - $208,350
35% -- $208,351 - $235,350
39.6% -- over $235,350 |
10% -- $0 - $9,525
12% -- $9,526 - $38,700
22% -- $38,701 - $82,500
24% -- $82,501 – $157,500
32% -- $157,501 - $200,000
35% -- $200,001 - $300,000
37% -- over $300,000 |
Rates – Heads of Households |
10% -- $0 - $13,350
15% -- $13,351 - $50,800
25% -- $50,801 - $131,200
28% -- $131,201 - $212,500
33% -- $212,501 - $416,700
35% -- $416,701 - $444,500
39.6% -- over $444,500 |
10% -- $0 - $13,600
12% -- $13,601 - $51,800
22% -- $51,801 - $82,500
24% -- $82,501 – $157,500
32% -- $157,501 - $200,000
35% -- $200,001 - $500,000
37% -- over $500,000 |
Capital Gains |
By holding assets for one year or less, any capital gain will be considered short-term and will be taxed at ordinary income tax rates. By holding assets for one year or more, any capital gain will be considered long-term and is taxed at rates up to 20% |
No significant change, except the brackets will be adjusted |
Standard Deduction[2] |
Single & Married Filing Separately - $6,350
Married Filing Jointly & Surviving Spouse - $12,700
Heads of Households - $9,350 |
Single and Married Filing Separately - $12,000
Married Filing Jointly & Surviving Spouse - $24,000
Heads of Households - $18,000 |
Personal Exemption |
$4,050 per person in each household |
Eliminated |
Child Tax Credit[3] |
$1,000 per child with modified adjusted gross income phase outs at $75,000 for single and heads of households filers; $55,000 for married filing separately; and $110,000 for married filing jointly. The credit is refundable for certain filers. |
$2,000 per child with modified adjusted gross income phase outs at $200,000 for single, and heads of households, and married filing separately filers and $400,000 for married filing jointly. Up to $1,400 is refundable for certain filers. |
Medical Expense Deduction[4] |
Medical expenses deductible in excess of 10% of adjusted gross income. |
Medical expenses deductible in excess of 7.5% of adjusted gross income. |
State and Local Tax Deduction |
Individuals may deduct state and local property, income, and/or sales tax in excess of the standard deduction. |
Deductions for state and local taxes will be capped at $5,000 for single filers and married filing separately and $10,000 per year for married filing jointly. Any 2018 taxes that are pre-paid during the 2017 tax year will be credited toward the $10,000 limit beginning on January 1, 2018. |
Mortgage Interest Deduction |
Individuals may deduct mortgage interest on purchases of up to $1,000,000 for the primary residence plus one additional home; individuals may also deduct up to $100,000 of equity debt |
The mortgage interest deduction will be capped at purchases of $750,000 for mortgages taken out after December 15, 2017; deductions for equity debt will be eliminated. |
Casualty Losses |
Individuals may deduct casualty losses (including fire, theft, and other property loss) in excess of 10% of adjusted gross income, plus $100 per casualty event. |
Casualty losses will be allowed as a deduction only to the extent the casualty event is attributable to a federally-declared disaster. |
Miscellaneous Itemized Deductions |
Certain miscellaneous deductions (including unreimbursed business expenses, tax preparation fees, and other expenses) are permitted in excess of 2% of adjusted gross income. |
Eliminated |
Moving Expense Deduction |
Taxpayers may deduct moving expenses when moving due to new employment that is located at least 50 miles further than the taxpayer’s previous place of employment from the taxpayer’s residence. |
Eliminated |
Alimony Deduction |
Alimony payments are deductible by the payor as an above-the-line deduction. |
Eliminated for divorce instruments executed on or after January 1, 2019 or modified after such date if the modification expressly states that this rule applies. |
Alternative Minimum Tax (AMT) – Exemptions[5] |
Single filers - $54,300
Married filing jointly - $84,500
Married filing separately - $42,250
Heads of Households - $54,300 |
Single filers - $70,300
Married filing jointly - $109,400
Married filing separately - $54,700
Heads of Households - $70,300 |
Alternative Minimum Tax (AMT) – Phase-Outs[6] |
Single filers - $120,700
Married filing jointly - $160,900
Married filing separately - $80,450
Heads of Households - $120,700 |
Single filers - $500,000
Married filing jointly - $1,000,000
Married filing separately - $500,000
Heads of Households - $500,000 |
Individual Mandate under the ACA |
Taxpayers who do not have required minimum health coverage are required to pay a penalty or claim a waiver or exemption. |
Eliminated |