New tax act

You're referring to the latest tax legislation!

In the United States, the most recent significant tax act is the Tax Cuts and Jobs Act (TCJA), which was signed into law by President Donald Trump on December 22, 2017. The TCJA made significant changes to the tax code, including:

  1. Individual Tax Rates: The TCJA reduced individual tax rates, with the top marginal rate decreasing from 39.6% to 37%.
  2. Standard Deduction: The standard deduction was increased to $12,200 for single filers and $24,400 for joint filers.
  3. State and Local Tax (SALT) Deduction: The SALT deduction was capped at $10,000.
  4. Child Tax Credit: The child tax credit was increased to $2,000 per child, with a phase-out starting at $400,000 for joint filers.
  5. Estate Tax: The TCJA doubled the estate tax exemption to approximately $11.4 million per individual.
  6. Business Tax Rates: The TCJA reduced the corporate tax rate from 35% to 21%.
  7. Pass-Through Income: The TCJA introduced a 20% deduction for qualified business income (QBI) from pass-through entities, such as partnerships and S corporations.
  8. Alternative Minimum Tax (AMT): The TCJA increased the AMT exemption amounts and indexed them for inflation.

The TCJA also made changes to various tax credits, deductions, and exemptions, such as:

It's essential to note that the TCJA is a complex piece of legislation, and its provisions may have varying impacts on different individuals and businesses. If you have specific questions or concerns about how the TCJA affects your tax situation, I recommend consulting with a tax professional or financial advisor.