This note is our final piece on the New United States Tax Law.
Alternative Minimum Tax – The Exempt Income Thresholds are Increased From Single: $54,300 to $70,300; Married Filing Joint: $84,500 to $109,400.
Alternative Minimum Tax Exempt Income Phase-outs, Increased From - Single: $120,700 to $500,000; Married Filing Joint: $160,900 to $1,000,000.Note: This means that if your income exceeds the $500,000 or $1,000,000 phase-out amount, you are no longer eligible to exempt $70,300 or $109,400 from the Alternative Minimum Taxable Income.
Child Tax Credit: Increases From $1,000 to $2,000 Per Child, for Children Under Age 17. Also, This Credit is Refundable Up To $1,400 if You Quality (Meaning – You Meet the Low-Income Tests).This phase-out increases from -Single: $75,000 to $200,000; Married Filing Joint $110,000 to $400,000.
529 Plans Change – You Are now Allowed to Use $10,000 Per Year to Pay For K-12 Education Tuition, Materials and Tutoring.
Obamacare Penalty is Eliminated Effective January 1, 2019
Marriage Penalty is Removed From All Tax Brackets, Except Highest Tax Bracket Income Tax Brackets Will Now be Adjusted for Inflation Using a Much Slower Measure Called Chained Consumer Price Index For All Urban Consumers.
Disclaimer: This blog is for information purposes only and is not intended to provide investing, accounting, tax or legal advice and should not be relied upon.