On 12/22/2017, the Tax Cuts and Jobs Act was signed into law. Most of the bills provisions do not take effect until 2018, but a few take effect in 2017 or 2019. A summary of the bill's tax provisions are provided below. The full bill can be viewed HERE.
Tax Cuts and Jobs Act
This bill amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses.
With respect to individuals, the bill:
replaces the seven existing tax brackets (10%, 15%, 25%, 28%, 33%, 35%, and 39.6%) with a different seven brackets (10%, 12%, 22%, 24%, 32%, 35%, and 37%),
increases the standard deduction,
repeals the deduction for personal exemptions,
increases the child tax credit,
temporarily reduced the medical expense deduction floor from 10% to 7.5%,
limits the mortgage interest deduction for debt incurred after November 2, 2017, to mortgages of up to $750,000 (currently $1 million),
limits the deduction for state and local income or sales taxes not paid or accrued in a trade or business,