2018 Tax Law Discovery

2018 Tax Law Discovery

---

For 2017 there is
deduction
and
exemption.
.
Deduction can be itemized or standard, and in the 2018 law the standard deduction is doubled.
.
Exemptions are based on the number of dependents.
For 2017 you get $4050 per dependent.
For 2018 this goes away.
.
So: A married couple with no children
in 2017 would have a standard deduction of 13,950.
In 2018 this becomes 24,000.
.
Exemptions for the same married couple
for 2017 was 8100;
for 2018 is 0000.
.
So far the childless couple is ahead for 2018
( and indeed may be in a lower tax bracket. )
The total of deduction plus exemption is
22,050 for 2017;
24,000 for 2018.
.
The picture changes if they have three kids:
26,100 for 2017;
24,000 for 2018.
.

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2018 Tax Law Discovery