New Tax Law

The Tax Cuts and Jobs Act (TCJA) of 2017 brought many changes for individuals and businesses. Below are the major changes for Individuals for 2019, 2020 and beyond.


Standard Deduction

For 2020 the standard deduction increases to $12,400 for single filers, $18,650 for heads of household, and $24,800 for joint filers. Effective 2018 the additional standard deduction and the personal exemption were eliminated. Provisions sunset at the end of 2025.


Itemized Deductions

State and Local Income and RE Tax

Caps the state and local tax deduction at $10,000 (property plus choice of income or sales taxes, as under current law), except for taxes paid or accrued in carrying on a trade or business.



Medical expense deduction – applies to expenses that exceed 10% of AGI thereafter.



Repeals the moving expense deduction (except for active duty military personnel) and eliminates the alimony deduction effective 2019 (though those receiving alimony no longer count it as income). Retains other above-the-line deductions, including educator expenses and student loan interest. Graduate student tuition waivers also remain in place.

Repeals all itemized deductions subject to the 2% floor (home office, license and regulatory fees, professional dues)





Tax Rates

Income Tax Brackets

Retains seven brackets, but at reduced rates, including a top marginal rate of 37 percent. The current tax rates of 10%, 15%, 25%, 28%, 33%, 35%, 39.6% rates would be replaced with tax rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Provisions sunset at end of 2025.


Capital Gains

Net capital gains and qualified dividends would continue to be taxed at the current 0%, 15%, 20% rates and also would continue to be subject to the 3.8% net investment tax


Tax Credits

Child Tax Credit

Increases the child tax credit to $2,000. Of this, $1,400 would be refundable, with the refundable portion indexed to inflation. All dependents ineligible for the child tax credit are eligible for a new $500 per-person family tax credit. Provisions begin to phase out at $400,000 ($200,000 for single filers). Social Security Numbers required for portions of the above. All provisions sunset at the end of 2025.



Retains this credit