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Income Tax Brackets

Single Filers
Tax Bracket Taxable Income
10 percent Up to $9,875
12 percent $9,876 - $40,125
22 percent $40,126 - $85,525
24 percent $85, 526 - $160,300
32 percent $160,301 - $207,350
35 percent $207,351 - $518,400
37 percent Over $518, 401
Married, Filing Jointly
Tax Bracket Taxable Income
10 percent Up to $19,750
12 percent $19,751 - $80,250
22 percent $80,251 - $171,050
24 percent $171,051 - $326,600
32 percent $326,601 - $414,700
35 percent $414,701 - $622,050
37 percent Over $622,051

 


STIMULUS PAYMENTS RECEIVED MUST BE ACCOUNTED FOR ON YOUR TAX RETURN FILING, EVEN THOUGH THEY WILL NOT BE CONSIDERED TAXABLE INCOME!

Child Tax Credit

Many taxpayers may receive a tax credit of up to $2,000 for each child under 17 years old that they claim as dependents on their tax returns. Other dependents equal $500.00 tax credit.

State and Local Tax Deductions

Taxpayers who itemize their taxes can deduct PROPERTY AND REAL ESTATE TAXES, and either STATE and local income or sales taxes.
These now will be capped at $10,000.

Mortgage Deductions

Taxpayers who itemize their taxes can deduct interest payments on mortgage debt of up to $750,000.
Also, homeowners may not claim a deduction for existing and new interest on Home Equity loans, beginning Jan. 1, 2018.

Medical Expense Deduction

Taxpayers can deduct medical expenses that exceed 7.5 percent of AGI.

Capital Gains Tax Rate

No changes.

Divorce

Effective on January 1, 2019 Alimony is no longer tax deductible at all, unless you divorced prior to this date.

Estate Tax

The top rate of 40 percent would apply to estates valued at more than $11.7 million ($23.4 million for couples).

Corporate Taxes

The top rate is 21 percent.

Pass-Through Business Taxes

Businesses organized as sole proprietorships, LLCs and partnerships don’t pay corporate tax rates. Instead, the owners pay individual income taxes on their share of business income – they’re called pass-through business taxes. Those tax rates are the same as the individual income tax rates.
Business owners can take a 20 percent deduction on their pass-through business income, with limits for those earning above $163,300 (single) and $326,600 (married, filing jointly).

Retirement Plan Distributions

No 10% penalty for up to $100,000 of COVID-19 related withdrawals, but regular ordinary Income Tax will still be due on it.
Also, if you can pay it back in full, within 3 years, then there will be no Tax due at all.

Charitable Donations

More donations to charity are now Tax deductible than before.

Solar Tax Credits

Installing Solar on your house, still provides good Tax Credit, but not as much as in the past. It is still good to do this because the credit will be gone completely after 2021.

New Tax Law

 

1095-A

 

Tax Hike

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