Congress finally passed the new tax reform bill and will affect the taxes of most taxpayers. One key point to keep in mind is the changes will apply for the 2018 tax year, not the one you will be filing for this year. 

Here’s a recap of some of the major tax provisions in the new tax bill and how it will impact you when you file in 2019.

For starters, the tax brackets and the income thresholds for these brackets have changed.

Single Filers

 

Current Tax BracketsCurrent ThresholdsNew Tax BracketsNew Thresholds
10%$0-$9,32510%$0-$9,525
15%$9,326-$37,95012%$9,526-$38,700
25%$37,951-$91,90022%$38,701-$82,500
28%$91,901-$191,65024%$82,501-$157,500
33%$191,651-$416,70032%$157,500-$200,000
35%$416,701-$418,40035%$200,001-$500,000
39.6%More than $418,40037%More than $500,000

 

Married Joint Filers

 

Current Tax BracketsCurrent ThresholdsNew Tax BracketsNew Thresholds
10%$0-$18,65010%$0-$19,050
15%$18,651-$75,90012%$19,051-$77,400
25%$75,901-$153,10022%$77,401-$165,000
28%$153,101-$233,35024%$165,001-$315,000
33%$233,351-$416,70032%$315,001-$400,000
35%$416,701-$470,70035%$400,001-$600,000
39.6%More than $470,70037%More than $600,000

 

Other Notable Changes

 

20172018
Standard Deduction
Single filers$6,350$12,000
Married couples filing jointly$12,700$24,000
Child Tax Credit
Per child$1,000$2,000
Refundable amount$1,100$1,400
Income threshold (for a married couple)$110,000$400,000
Nonrefundable credit for dependents other than childrenN/A$500
State and Local Taxes/Home Mortgages
Aggregate of state and local property taxes taxpayers can claimCapped at $10,000
Interest deduction on the amount of mortgage indebtedness on new home purchasesCapped at $1,000,000Capped at $750,000
Alternative minimum tax
Income exempted for married filing jointly$84,500 $109,400
Income exempted for single taxpayers$54,300$70,300
Personal and dependent exemptions
Personal and dependent exemptions per taxpayer and dependent$4,050Eliminated
Health care
Tax penalty for individuals without health insuranceEliminated
Earned income tax credit
Credit for low- to middle-income wage earnersOver $6,000 credit for a family with three kidsOver $6,000 credit for a family with three kids