Breaking News: The Tax Cuts & Jobs ActIndividual Tax Reform: The Long Awaited Proposal Has Arrived!
- 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- The Alternative Minimum Tax (AMT) is repealed.
- The exemption for the Estate Tax is doubled and the tax will be repealed in full in six years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.