Some of the provisions of the new tax bill are: Employee share of payroll taxes returns to 6.2%, which means we will all see less take home pay. The top marginal tax rate is now 39.6%, for single people earning over $400,000, and married couples earning more than $450,000. Marriage penalty relief has been made permanent, so the 15% tax bracket for MFJ is set at 200% of the amount for singles.
Certain itemized deductions will be limited for high income taxpayers, specifically singles earning more than $250,000, and married couples earning more than $300,000. Long term capital gain rates get a new top end of 20% for taxpayers in the 39.6% tax bracket. So, the rates are 0% for taxpayers in the 10 & 15% tax bracket, 15% for taxpayers in brackets 25% to 39.6, and 20% for taxpayers in the top bracket.
Other provisions include: the Child Tax Credit is permanently set at $1,000 per qualifying child, and Child and Dependent Care expense limits are permanently set at $3,000 per child, $6,000 maximum, and a 35% maximum credit.
The Alternative Minimum Tax exemption amounts were permanently extended and indexed for inflation for future years, so there will be no more last minute patching henceforth. The Hope/American Opportunity Credit for education was extended until 2018, which means a maximum credit on qualified educational expenses of $2500--- $1,000 of which can be refundable.
Certain itemized deductions will be limited for high income taxpayers, specifically singles earning more than $250,000, and married couples earning more than $300,000. Long term capital gain rates get a new top end of 20% for taxpayers in the 39.6% tax bracket. So, the rates are 0% for taxpayers in the 10 & 15% tax bracket, 15% for taxpayers in brackets 25% to 39.6, and 20% for taxpayers in the top bracket.
Other provisions include: the Child Tax Credit is permanently set at $1,000 per qualifying child, and Child and Dependent Care expense limits are permanently set at $3,000 per child, $6,000 maximum, and a 35% maximum credit.
The Alternative Minimum Tax exemption amounts were permanently extended and indexed for inflation for future years, so there will be no more last minute patching henceforth. The Hope/American Opportunity Credit for education was extended until 2018, which means a maximum credit on qualified educational expenses of $2500--- $1,000 of which can be refundable.