gop tax law bill extenders

With the passing of the GOP tax bill, formally known as the Tax Cuts and Jobs Act, here are 5 important things to know about changes coming your way as a professional tax preparer.

  1. Rates for the seven individual tax brackets have changed
    • The new rates are: 10%, 12%, 22%, 24%, 32%, 35% and 37%
      • Find out which bracket you (or your client) will belong to¬†here
  2. Personal Exemption is gone
    • Previously, you could claim a $4,050 exemption for your dependents, your spouse and yourself — that is gone
  3. Child tax credit has expanded
    • Is now $2,000 for children under 17
    • Can be claimed in its entirety by single parents making less than $200k and married couples making less than $400k
  4. New $500 tax credit
    • Taxpayers can claim a $500 temporary credit for non-child dependents such as elderly parents or adult children with a disability
  5. Decrease in corporate tax rate
    • Cut from 35% to 21%
    • The alternative minimum tax for corporations has been eliminated all together

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