THE TAX CUT AND JOBS ACT OF 2018 (TCJA) | WHAT YOU NEED TO KNOW ABOUT THIS TAX REFORM ACT | PART I OF II. As of January 1, 2018, I have listed the main highlights for individual tax changes. These rules are in effect through December 31, 2025: 1) The TCJA retains seven brackets. In general, there is a 2% decrease in the statutory rates for most of the brackets. 2) $10,000 maximum deduction for the combination of state income and real estate taxes or sales and real estate taxes. 3) Mortgage interest deduction-For years beginning after 12/31/17, Acquisition indebtedness is limited to $750,000. This includes all personal residences, including vacation homes (as long as personal use exceeds 14 days) and as long as overall debt does not exceed $750,000. For acquisition indebtedness incurred before 12/15/17, this limitation is $1,000,000. No deduction is allowed for home equity loan or home equity line of credit interest. 4) Medical and Dental expenses are deductible in excess of 7.5% of AGI for 2017 and 2018. For 2020–2026, it is 10% of AGI. 5) The Child tax credit is allowed of $2,000 per dependent child under the age of 17(refundable portion is now $1,400), but the credit would phase out for joint tax returns with AGI over $400,000 ($200,000 for single tax returns). 6) Charitable contributions maximum for cash contributions is up to 60% of AGI. 7) The standard deduction is now $24,000 for joint filers, $18,000 for heads of household, and $12,000 for single filers. 8) Personal exemptions are repealed. | #jefftraviscpa #jeffreybtravis #jeffreybtraviscpa | Jeffrey B. Travis | Accountant & Consultant in Deerfield, IL.