Trump Tax Reform Calculator - Trump Tax Reform - GOP Tax Bill | Calculators by CalcXML
President Trump's Tax Cut and Jobs Act is now law and described as the most significant overhaul of the American tax system in decades. Here are some of the changes to the tax code that you can expect to see when it comes to filing your 2020 taxes.
There will be a change in most of the seven tax brackets in 2020. The personal tax brackets will be as follows: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Small business owners who are setup as S-Corporations or Limited Liability companies and receive pass-through income via a K-1 or form 1065, will be allowed to deduct 20% of their income prior to applying the personal income tax rates up to certain qualifying income limits, and the corporate rate will be cut from 35% to 21%.
Other features of H.R. 1, Tax Cuts and Jobs Act, will be to increase the standard deduction to $12,400 for single filers and $24,800 for married filing jointly, but completely eliminate personal exemptions. State, local and property taxes deductions for those itemizing will be capped at $10,000. Medical expenses exceeding 10% of an individual’s AGI can be deducted.. Mortgage interest will be deductible for mortgages up to $750,000. The child tax credit will increase from $1,000 to $2,000 per child under 17 years of age with $1,400 of the $2,000 potentially refundable. Filers with dependents who do not qualify for the child tax credit will be able to claim a $500 credit for each dependent. The bill also repeals the individual mandate to purchase health insurance beginning 2019.
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