Posted: March 27, 2018
US Tax Updates 2018:
On 22 December 2017 President Trump signed the Tax Cuts and Jobs Act.
Some of the key highlights are as follows:
Standard Deductions are increased to $12,000 for single filers and $24,000 for joint filers from $6,350 and $12,700 respectively.
Personal exemptions have been suspended.
The maximum corporate tax rate has been cut from 35% to 21%.
The Lifetime Estate Tax exemption has been doubled to $11.2m for individuals and $22.4m for couples.
Some itemised deductions have been restricted or removed including moving expenses (apart from military). Home mortgage interest relief will be restricted to the first $750,000 of the loan – for new mortgages from 2018.
Itemised deductions remain for charitable donations, retirement savings and student loan interest – the provision for medical expenses has been expanded to allow expenses over 7.5% of Adjusted Gross Income, where it was 10% previously.
The fine levied for Americans under Obamacare for not obtaining health insurance coverage has been repealed.
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