How Will the Tax Cuts and Jobs Act Impact Me

How Will the Tax Cuts and Jobs Act Impact Me

Standard deduction: the standard deduction will be nearly doubled. Rises to $24,000 from this year's $13,000 for marrieds filing jointly and it climbs to $12,000 for singles.

Mortgage interest deduction: going forward, the deduction will be limited to interest on the first $750,000 you borrow. That's down from the current rule, which lPets you deduct interest on the first $1 million of debt.

Tax rates and brackets: the bill retains the current seven brackets. But rates and income levels to which they apply will change.

Pass-through business income: taxes on partnerships, S corporations and sole proprietorships will be calculated by exempting 20% of all net business taxable income that the business earns, with limits.

Recharacterization of a Roth IRA conversion: The bill kills the ability to do a recharacterization for tax years after Dec. 31.

State and local taxes: an individual's itemized deduction for state income taxes and local property taxes will be capped at a total of $10,000.

Child tax credit expanded and will be allowed at higher levels of income (phasing out beginning at $400,000 of income in place of $110,000)