Question: How much is the new standard deduction?
Under TCJA, the Tax Cuts and Job Act, the new standard deduction for taxpayers will be
- Single $12,000
- Married filing Joint $24,000
- Head of Household $18,000
- Married filing separate $12,000New law. For months beginning after Dec. 31, 2018, the amount of the individual shared responsibility payment is reduced to zero. (, as amended by Act Sec. 11081) This repeal is permanent.
Question: Why do I have to efile?
Answer: Individuals who file their returns electronically consistently report a much higher satisfaction level with the filing process than do the individuals who file their returns on paper.
E-filing reduces errors, results in faster refund times, and is safe and secure. The IRS estimates a 7-10 day refund time for e-filed returns with electronic deposit of the refund.
Question: What are the new Married filing Joint tax rates under the new law?
Answer: The new tax rates are based on income. Here they are:
|If taxable income is:||The tax is:|
|Not over $19,050||10% of taxable income|
|Over $19,050 but not over $77,400||$1,905 plus 12% of the excess over $19,050|
|Over $77,400 but not over $165,000||$8,907 plus 22% of the excess over $77,400|
|Over $165,000 but not over $315,000||$28,179 plus 24% of the excess over $165,000|
|Over $315,000 but not over $400,000||$64,179 plus 32% of the excess over $315,000|
|Over $400,00 but not over $600,000||$91,379 plus 35% of the excess over $400,000|
|Over $600,000||$161,379 plus 37% of the excess over $600,000|
Question: Did they fix the AMT? (Alternative Minimum Tax)
New law. For tax years beginning after Dec. 31, 2017 and before Jan. 1, 2026, the Act increases the AMT exemption amounts for individuals as follows:
- . . . For joint returns and surviving spouses, $109,400.
- . . . For single taxpayers, $70,300.
- . . . For marrieds filing separately, $54,700. (, as amended by Act Sec. 12003(a))
Under the Act, the above exemption amounts are reduced (not below zero) to an amount equal to 25% of the amount by which the AMTI of the taxpayer exceeds the phase-out amounts, increased as follows:
- . . . For joint returns and surviving spouses, $1 million.
- . . . For all other taxpayers (other than estates and trusts), $500,000.
For trusts and estates, the base figure of $22,500 and phase-out amount of $75,000 remain unchanged. All of these amounts will be adjusted for inflation after 2018 under the new C-CPI-U inflation measure. (, as amended by Act Sec. 12003(a))