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 Brackets Current Thresholds New Tax Brackets New Thresholds
10% $0-$9,325 10% $0-$9,525
15% $9,326-$37,950 12% $9,526-$38,700
25% $37,951-$91,900 22% $38,701-$82,500
28% $91,901-$191,650 24% $82,501-$157,500
33% $191,651-$416,700 32% $157,500-$200,000
35% $416,701-$418,400 35% $200,001-$500,000
39.6% More than $418,400 37% More than $500,000

 

Married Joint Filers

 

Current Tax Brackets Current Thresholds New Tax Brackets New Thresholds
10% $0-$18,650 10% $0-$19,050
15% $18,651-$75,900 12% $19,051-$77,400
25% $75,901-$153,100 22% $77,401-$165,000
28% $153,101-$233,350 24% $165,001-$315,000
33% $233,351-$416,700 32% $315,001-$400,000
35% $416,701-$470,700 35% $400,001-$600,000
39.6% More than $470,700 37% More than $600,000

 

Other Notable Changes

 

2017 2018
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 children N/A $500
State and Local Taxes/Home Mortgages
Aggregate of state and local property taxes taxpayers can claim Capped at $10,000
Interest deduction on the amount of mortgage indebtedness on new home purchases Capped at $1,000,000 Capped 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 $4,050 Eliminated
Health care
Tax penalty for individuals without health insurance Eliminated
Earned income tax credit
Credit for low- to middle-income wage earners Over $6,000 credit for a family with three kids Over $6,000 credit for a family with three kids