The bill also caps the amount of mortgage indebtedness on new home purchases on which interest can be deducted at $750,000 down from $1,000,000 in current law. In the past, these taxes have generally been fully tax deductible. The bill limits the amount of state and local property, income, and sales taxes that can be deducted to $10,000.

The bill eliminates the personal and dependent exemptions for 2019, which was $4,0. Finally, it raises the income threshold at which these benefits phase out from $110,000 for a married couple to $400,000. The bill also adds a new, non-refundable credit of $500 for dependents other than children. In addition, the amount that is refundable grows from $1,100 to $1,400. Under the new law, this percentage is expected to decrease.įor, families with children the Child Tax Credit is doubled from $1,000 per child to $2,000. These increases mean that fewer people will have to itemize. Today, roughly 30% of taxpayers itemize. Married couples filing jointly see an increase from $12,700 to $24,4. Single taxpayers will see their standard deductions jump from $6,3 taxes to $12,2 taxes (the ones you file in 2020). The new tax law nearly doubles the standard deduction amount.

The bill also eases the burden of the individual alternative minimum tax (AMT) by raising the income exempted from $84,500 (adjusted for inflation) to $111,700 married filing jointly and from $54,300 (adjusted for inflation) to $71,700 for single taxpayers, so fewer taxpayers will pay it in 2019. The income thresholds at which these brackets kick in have changed, as well.įor single filers: Alternative Minimum Tax Exemptions Increased It also changes the income thresholds at which the rates apply. The bill retains the seven tax brackets found in current law, but lowers a number of the tax rates. Lower Tax Rates and Changed Income Ranges

Here’s a recap of some of the major tax provisions in the new tax bill and how they may impact you. That said, many folks are wondering what’s in the bill and how it might affect them. We’re doing the work to make sure our products are up to date and that you can use them to file your taxes with complete confidence. If you’re wondering how you’re affected, not to worry, we have your back. By David Williams, Chief Tax Officer, Intuit & Executive Director, Intuit Tax and Financial Center

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