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 |
