There are new, more generous tax rates, especially for corporations, who see their rates fall from 35% to 21%. Personal tax rates were lowered as well, with the new bottom end at 10%. Ironically, the personal tax rates expire at the end of 2025, but the corporate rates remain fixed permanently.
At first glance, it appears that many people who don't itemize will get a tax break on their 2018 returns next year. That may true for those whose itemized deductions are greater than the new standard deduction amounts of $12k (single) or $24K (joint), especially as those deduction totals go above and beyond the new standard deduction levels. In any case, many of the old deductions are now gone, including the 2% (miscellaneous) deductions. These include employee business expenses, tax prep fees, safety deposit boxes, and union dues among others. Also gone are casualty and theft deductions. The deduction of state, property, and local taxes cannot exceed $10k. The interest on new home loans can only be deducted on the first $750k of the mortgage debt, and the interest on all home equity loans (old or new) is no longer deductible. Gone also is the personal exemption. Are you seeing a pattern here? Yes, it appears that many of the deductions which working class people hold near and dear are being eliminated. No matter though. We'll all be better off with that larger standard deduction, or so they tell us.
At first glance, it appears that many people who don't itemize will get a tax break on their 2018 returns next year. That may true for those whose itemized deductions are greater than the new standard deduction amounts of $12k (single) or $24K (joint), especially as those deduction totals go above and beyond the new standard deduction levels. In any case, many of the old deductions are now gone, including the 2% (miscellaneous) deductions. These include employee business expenses, tax prep fees, safety deposit boxes, and union dues among others. Also gone are casualty and theft deductions. The deduction of state, property, and local taxes cannot exceed $10k. The interest on new home loans can only be deducted on the first $750k of the mortgage debt, and the interest on all home equity loans (old or new) is no longer deductible. Gone also is the personal exemption. Are you seeing a pattern here? Yes, it appears that many of the deductions which working class people hold near and dear are being eliminated. No matter though. We'll all be better off with that larger standard deduction, or so they tell us.