• James D. Lynch

Here are some of the tax changes coming as a result of the 2018 Tax Cuts and Jobs Act:

● Individual tax brackets are revised downward.

● Personal exemptions are eliminated.

● Alternative Minimum Tax exemption amounts are increased to $109,400 for Married Filing Jointly taxpayers and $70,300 for Single and Head of Household taxpayers.

● Standard deduction is increased to $24,000 for Married Filing Jointly taxpayers, $18,000 for Head of Household taxpayers, and $12,000 for Single taxpayers.

● Medical expense deduction is permitted for unreimbursed medical expenses over 7.5% of AGI.

● State and local tax, sales tax and property tax deductions are eliminated in excess of $10,000 (or $5,000 if Married Filing Separately).

● Mortgage interest is deductible only on debt not exceeding $750,000.

● Home equity debt interest deduction is eliminated unless it’s used to buy, build or improve taxpayer’s residence.

● Charitable deduction: Cash contribution limit is increased to 60% of AGI for public charities and certain private foundations.

● Miscellaneous itemized deductions subject to 2% of AGI is eliminated.

● Moving expense deduction/exclusion is eliminated (except for military relocations).

● Alimony deduction is eliminated and is no longer includible in the recipient’s income.

● Itemized deduction phaseout for high income taxpayers is eliminated.

● Child Tax Credit is increased to $2,000, $1,400 of which is refundable. Phaseout is increased to $400,000 for Married Filing Jointly taxpayers and $200,000 for all other taxpayers.

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Law Office of James D. Lynch, PLLC

3000 Joe Dimaggio Blvd #90, Round Rock, TX 78665


(512) 745-6347

(714) 745-3875

©2020 by Law Office of James D. Lynch, PLLC. The information contained in this website is for informational purposes and is not to be considered legal advice.  Any correspondence between you and the Law Office of James D. Lynch is not intended to create an attorney-client relationship.  Please do not send confidential information to us until after an attorney-client relationship has been established by an engagement letter signed by the proposed client and our attorney.