What Changes Will you See on Your Taxes in the Next Few Years
The first thing to keep in mind is that all changes for households will expire after 2025.
The tax cuts for businesses are permanent.
What to expect:
- Individual Income Tax Rates will decrease in 2018. To see the rates click here.
- The personal exemption which is $4050 per person for 2017 is repealed in favor of a higher standard deduction and higher child tax credit.
- Standard deduction is raised to$ 12,000 for single tax payers and $24,000 for married filing jointly
- The child tax credit is raised to $2000 per child with the cut off for the credit increasing to $400,000 for married filing jointly.
- State and Local tax deductions will be capped at $10,000
- Mortgage Deductions: No change for current mortgage holders, but limit drops from $1.1 million including $100,000 on home equity, to $750,000 for new mortgages and no deductions for home equity.
- Taxpayers will be able to deduct medical expenses that exceed 7.5% of AGI in 2017 and 2018 but this goes back to 10% in 2019.
- Previous itemized deduction limits are repealed through 2025 tax year.
For more information read this article.