Soar to Success April 2018

SOAR TO SUCCESS / April 2018 / Core Business Strategies 2017 Tax Reform: Changes That Could Affect Your Tax Bill, Part 2 By Tina Moe, CPA T his article is a continuation in my series about the 2017 Tax Reform Act. Today, I am sharing information about changes to the child tax credit, capital gain tax, and the state and local tax deduction limitations and more. The child tax credit is increased from $1,000 to $2,000 for qualifying children under the age of 17. This is good news and so is the increase in the income levels IRU WKH FUHGLW SKDVH RXW )RU PDUULHG ĆOLQJ joint, the credit phase out is increased to $400,000 and $200,000 for all other ĆOHUV ,Q DGGLWLRQ WKHUH LV D QHZ nonrefundable credit that is provided for certain non-child dependents such as elderly parents. &DSLWDO JDLQV DQG TXDOLĆHG GLYLGHQGV under the new law, generally retain the same maximum tax rates as well as the LQFRPH EUHDNSRLQWV )RU WKH breakpoint is $77,200 for joint returns DQG VXUYLYLQJ VSRXVHV IRU KHDGV of households and $38,600 for other unmarried individuals.