2018 New Tax Structure: A Cheat Sheet | Gordon Law Group2018 New Tax Structure: A Cheat Sheet | Gordon Law Group

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 CodeNew Tax CodeWinnersNon-Winners
# Of Household Income Tax Brackets: 7# Of Household Income Tax Brackets: 4People Whose Tax Bracket Is LoweredPeople Who Are Bumped Up To The Next Tax Bracket
Child Tax Credit: $1,000Child Tax Credit: $2,000 – Expires in 2025People With Kids; Especially Families With Several Kids Who Make Below $400,000Child-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 2025People With Kids; Especially Married People With KidsChild-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 2025People Who Fall Into The Alternative Minimum Tax Brackets Will Be Able To Apply Larger ExemptionsThis Change Won’t Affect People Who Weren’t Previously Subject To AMT Rules
Inheritance Tax Threshold: $5.5M Per IndividualInheritance Tax Threshold: $11M Per Individual – Expires in 2025People Who Inherit Money; They Don’t Have To Pay Gains On The First $11M Of Inherited WealthThis Change Won’t Affect People Who Don’t Inherit Money
No “Pass Through” Deduction For BusinessesCreates a 20% “Pass Through” Deduction For Qualified BusinessesBusinesses That Can Now Take Advantage Of This DeductionNA
Standard Corporate Tax Rate: 35%Standard Corporate Tax Rate: 21%Businesses That Paid A Higher Tax Rate Under The Old CodeBusinesses 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 2025Anyone Who Takes The Standard Deduction Will BenefitNA
SALT Deductions: UnlimitedSALT Deductions: Capped at $10,000 – Expires in 2025NAAnybody Who Was Able To Claim More Than $10,000 In SALT Deductions
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