Standard Deductions
Couples who are married and who are filing jointly will now have a standard deduction of $13,000. This represents a $300 raise from $12,700, which was before.
As for the single taxpayers, as well as married couples who are filing separately, they will have their standard deduction risen to $6,500. Meanwhile, U.S. heads of households will have a deduction of $9,550.
Personal Exemption
As with the new tax changes, personal exemptions will grow by $100 up to $4,150.
The phase-out for this exemption begins at income of $266,700, or $320,000 for married couples who file jointly, and phases out completely at $389,200 for individuals and $442,500 for couples who file together.
Contributions to Roth IRAs
For individuals who are single or the heads of their households, the income phase-out has been raised to $120,000 to $135,000. For married couples who file jointly, the range climbs to $189,000 to $199,000.
The phase out was not adjusted for married individuals who file a separate return. That is $0 to $10,000.
2 thoughts on “7 Important Tax Changes That Will Change Your Life In 2018”
One item NOT covered is the exclusion of fees and expenses charged by managed retirement portfolio providers. The loss of these deductions will dramatically affect my disposable income. As a retiree I live on SS and a small income from my retirement account.
Thus, seniors are given the shaft in this new tax bill.
JY
Its not controversial here. NOT ONE DEWMOCRAT voted to give me a tax cut, NOT ONE. They will be remembered next November. With friends like that we don’t need an enema. (I did not misspell that word) And people vote for these morons??
I cannot say it any more distinct than that.