Category: Jobs
The Tax Cuts and Jobs Act of 2017 Becomes Law
The Tax Cuts and Jobs Act of 2017: Highlights of the Final Tax Cuts and Jobs Act The tax reform bill passed both the House and the Senate and was signed into law by the President on December 22nd. The legislation will result in substantive tax reform for corporations, with the elimination of the corporate AMT and consolidation down to a single 21% tax rate. Individuals, however, will find that the new legislation is more of a series of cuts and tweaks. Almost all individual households will see a tax reduction in the coming years with all seven tax brackets decreasing by a few percentage points We have compiled a list of some of the key elements and provided a comparison between the current law and the Tax Cuts and Jobs Act of 2017. The Tax Cut and Jobs Act Provision Current Law New law – January 1, 2018 Tax Brackets We have seven (7) tax brackets: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6% Keeps seven (7) tax brackets that lowers individual tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Standard Deduction The standard deduction amounts for 2018 are $6,500 for individuals, $9,550 for heads of households (HOH), and $13,000 for married couples filing jointly. The standard deduction will increase to $12,000 for individuals, $18,000 for heads of household
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