2018 New Tax Structure: A Cheat Sheet

Here’s a handy chart that succinctly explains the major changes in the updated tax code.

Old Tax Code New Tax Code Winners Non-Winners
# Of Household Income Tax Brackets: 7 # Of Household Income Tax Brackets: 4 People Whose Tax Bracket Is Lowered People Who Are Bumped Up To The Next Tax Bracket
Child Tax Credit: $1,000 Child Tax Credit: $2,000 – Expires in 2025 People With Kids; Especially Families With Several Kids Who Make Below $400,000 Child-Free People Never Benefit From Child-Related Tax Breaks
Threshold Where Child Tax Credit Refund Is Phased Out: AGI of $75,000 (Single) / $110,000 (Joint) Threshold Where Child Tax Credit Refund Is Phased Out: AGI of $200,000 (Single) / $400,000 (Joint) – Expires in 2025 People With Kids; Especially Married People With Kids Child-Free People Never Benefit From Child-Related Tax Breaks
AMT Exemption Amount: $54,300 (Single) / $ 84,500 (Joint) AMT Exemption Amount: $70,300 (Single) / $109,400 (Joint) – Expires In 2025 People Who Fall Into The Alternative Minimum Tax Brackets Will Be Able To Apply Larger Exemptions This Change Won’t Affect People Who Weren’t Previously Subject To AMT Rules
Inheritance Tax Threshold: $5.5M Per Individual Inheritance Tax Threshold: $11M Per Individual – Expires in 2025 People Who Inherit Money; They Don’t Have To Pay Gains On The First $11M Of Inherited Wealth This Change Won’t Affect People Who Don’t Inherit Money
No “Pass Through” Deduction For Businesses Creates a 20% “Pass Through” Deduction For Qualified Businesses Businesses That Can Now Take Advantage Of This Deduction NA
Standard Corporate Tax Rate: 35% Standard Corporate Tax Rate: 21% Businesses That Paid A Higher Tax Rate Under The Old Code Businesses Whose Deductions Brought Them Below The 21% Threshold Under The Old Code
Standard Deduction: $6,350 (Single) / $12,700 (Joint) / $9,350 (Household Heads) Standard Deduction: $12,000 (Single) / $24,000 (Joint) / $18,000 (Household Heads) – Expires in 2025 Anyone Who Takes The Standard Deduction Will Benefit NA
SALT Deductions: Unlimited SALT Deductions: Capped at $10,000 – Expires in 2025 NA Anybody Who Was Able To Claim More Than $10,000 In SALT Deductions
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