TCJA fast facts:
1. This is the first significant tax reform of the U.S. tax code since 1986.
2. Changes have been made to both individual and corporate tax rates.
3. Tax reform will increase deficits by $1.46 trillion over the next decade.
4. There are still seven tax brackets for individuals, but the rates have changed.
5. The standard deduction has essentially been doubled.
6. The personal exemption is gone.
7. The state and local tax deduction now has a cap.
8. The child tax credit has been expanded.
9. There's a new tax credit for non-child dependents, like elderly parents.
10. Fewer people will have to deal with the alternative minimum tax.
11. And the mortgage interest deduction has been lowered.
12. By the way, you can still deduct student loan interest.
13. You can still deduct medical expenses.
14. If you're a teacher, you can still deduct classroom supplies.
15. The electric car tax credit lives on.
16. Home sellers who turn a profit keep their tax break.
17. 529 savings accounts can be used in new ways.
18. And tuition waivers for grad students remain tax-free.
19. Alimony payments are no longer deductible for the person who writes the checks.
20. The deduction for moving expenses is also gone ...
21. Through 2025, people can only claim a loss deduction if they've been affected by an official national disaster. That would make someone whose house was destroyed by a California wildfire potentially eligible for some relief, while disqualifying the victim of a random house fire.
22. Obamacare penalty for not having health insurance is gone as of 1/1/2019!
23. The corporate tax rate has been cut from 35% to 21% starting 1/1/2018.
30. Pass-through entities will also get a break via the Qualified Business Income Deduction (Sec.199A)
Please ask your accountant if any of these changes apply to your individual circumstances!