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Tax Reform News

This year’s electronic filing season begins on January 29th, 2018 for your 2017 Income Tax preparation. It will end April 17th, 2018.


On December 22, 2017 the Tax Cuts and Jobs Act was signed into law. There are many changes affecting 2018. A brief summary of the most pertinent ones for your review are below. We’ll have additional information on our website and social media in the coming weeks. Follow us to get the latest updates!


New Tax Brackets:

Rate For Single,

Taxable Income Over

For Head of Household,

Taxable Income Over

For Married Filing Joint,

Taxable Income Over

10% $0 $0 $0
12% $9,525 $13,600 $19,050
22% $38,700 $51,800 $77,400
24% $82,500 $82,500 $165,000
32% $157,500 $157,500 $315,000
35% $200,000 $200,000 $400,000
37% $500,000 $500,000 $600,000


Standard Deductions: Single & Married Filing Separate $12,000; Head of Household $18,000; Married Filing Jointly $24,000


Personal & Dependent Exemptions: No longer in existence.

Itemized Deductions:

  • Medical Deductions – Amount above 7.5% of AGI for years 2017 and 2018 is deductible.
  • State & Local Taxes – The deduction is limited to $10,000.
  • Home Mortgage Interest – Mortgage interest paid on new loans are deductible up to $750,000 or $1,000,000 for existing loans.
  • Interest from Home Equity Lines of Credit (HELOCs) – No longer deductible.
  • Casualty and Theft Losses – No longer permitted unless part of a federally declared disaster area.
  • Job Expenses and Certain Miscellaneous Deductions – No longer deductible.


Healthcare Penalty: Eliminated starting in 2019.

Child Tax Credit: The child tax credit has doubled to $2,000. Up to $1400 is refundable if you have no taxable income.

Section 179 Depreciation Limit: Increased to $1,000,000.

Pass-Through Business Taxes: Business owners can take a 20% deduction on pass-through business income. This includes sole proprietors, partnerships and S-Corps. There are limitations above $157,500 (Single) and $315,000 (Married Filing Jointly) in taxable income.

Like Kind Exchanges: Will only be allowed for Real Estate Transactions.

Alternative Minimum Tax Exemption: Single & Married Filing Separate $70,300; Married Filing Jointly $109,400.

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