Serving Southeastern Wisconsin Since 1935

Breaking News: The Tax Cuts & Jobs Act

Individual Tax Reform: The Long Awaited Proposal Has Arrived! 

The Basics
  • The new individual income tax rates are 0 percent, 12 percent, 25 percent, and 35 percent.
  • The standard deduction goes from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples.
  • The bill establishes a new Family Credit, which includes expanding the Child Tax Credit from $1,000 to $1,600, and gives a credit of $300 for each parent and non-child dependent.
  • Elimination of most itemized deductions; the State & Local tax deduction being the most commonly used by Wisconsinites who itemize
  • The deduction for charitable donations is untouched
  • The home mortgage deduction is maintained for current mortgages, but is capped for new homes with loans totaling no more than $500,000.
  • You can still write off state and local property taxes, but only up to $10,000
  • No changes to 401(k)s or Individual Retirement Accounts (IRAs)
  • The Alternative Minimum Tax (AMT) is repealed.
  • The exemption for the Estate Tax is doubled and the tax will be repealed in full in six years
  • The bill preserves the Earned Income Tax Credit.

https://waysandmeans.house.gov/taxreform/
https://waysandmeans.house.gov/taxreform/#the-plan