As you may have heard, in late December a tax bill for 2018 and beyond was signed into law. The big story is the reduced rates for all seven tax brackets and the doubling of the minimum standard deduction for all filers. There are, of course, smaller pieces of the bill which may be important to you.
Capital Gain and Qualified Dividend tax rates remain the same (at 0, 15 or 20%) and adjust at the same income levels as under the prior tax structure.
Deductions for local income taxes (city and state) and property taxes have now been capped at a combined $10,000 per year.
529 Plans, which had been for post-secondary education only, can now also be used for private elementary or secondary schooling as well as some homeschooled expenses up to $10,000 per year. There is no cap on how much can be used per year on post-secondary education.
Taxes impacting some portions of the population like the Alternative Minimum Tax and Estate Tax have been adjusted to impact very few taxpayers.
Certainly, this is only a brief look at the many changes in the bill. As 2018 goes along, we will be learning more about the nuances of the new tax code. We will make every effort to pass along any information we deem important to you.