Important Tax Changes – Individuals

Individual Tax Provisions

For tax years 2018-2025 the following apply.  There are seven tax brackets for individuals: 10%, 12%, 22%, 24%, 32%, 35% and 37%.  The deduction for personal exemptions is eliminated.  The standard deduction amounts for married individuals filing jointly is $24,000, $18,000 for head-of-household filers, and $12,000 for all other taxpayers, adjusted for inflation after 2018.  No changes were made to the current-law additional standard deduction for the elderly and blind.  A taxpayer’s itemized deduction for state and local taxes is limited to $10,000 ($5,000 for a married taxpayer filing a separate return) of the aggregate of (1) state and local property taxes and (2) state and local income taxes.  The personal casualty and theft loss deduction is eliminated except for personal casualty losses incurred in a federally-declared disaster.  The deduction for miscellaneous itemized deductions that are subject to the 2% floor is eliminated (professional dues, unreimbursed employee expenses, investment expenses, tax preparation fees, and safe deposit rental fees to mention several).  For any divorce or separation agreement executed after 2018 or executed before that date but modified after it, alimony and separate maintenance payments are not deductible by the payor spouse and are not included in the income of the payee spouse.  The deduction for moving expenses and the income inclusion for qualified moving expense reimbursements are eliminated.

On December 22, 2017, the President signed the “Tax Cuts and Jobs Act (TCJA)”.  The TCJA covers a wide range of individual and business tax provisions.  The remainder of this letter summarizes some of the more important provisions.

For those who are paying college tuition, there is some good news. Several education-related benefits were extended, including the American Opportunity Tax Credit, which allows eligible taxpayers to claim a tax credit for some higher education expenses. Given skyrocketing tuition costs, families should not overlook these credits and deductions as they plan for college.

We can help you understand your tax situation and determine the best steps to address your tax challenges and any other financial concerns. We are also available after tax season to advise you on the financial strategies and planning decisions that will help you meet your goals. Please don’t hesitate to contact us today to schedule an appointment to begin discussing your options.


Going, Sebastien, Fisher & LeBouef, LLP