New United States Tax Law (Part 3)

This note is our final piece on the New United States Tax Law.

• Alternative Minimum Tax – The Exempt Income Thresholds are Increased From Single: $54,300 to $70,300; Married Filing Joint: $84,500 to $109,400.

• Alternative Minimum Tax Exempt Income Phase-outs, Increased From - Single: $120,700 to $500,000; Married Filing Joint: $160,900 to $1,000,000. Note: This means that if your income exceeds the $500,000 or $1,000,000 phase-out amount, you are no longer eligible to exempt $70,300 or $109,400 from the Alternative Minimum Taxable Income.

• Child Tax Credit: Increases From $1,000 to $2,000 Per Child, for Children Under Age 17. Also, This Credit is Refundable Up To $1,400 if You Quality (Meaning – You Meet the Low-Income Tests). This phase-out increases from -Single: $75,000 to $200,000; Married Filing Joint $110,000 to $400,000.

• 529 Plans Change – You Are now Allowed to Use $10,000 Per Year to Pay For K-12 Education Tuition, Materials and Tutoring.

• Obamacare Penalty is Eliminated Effective January 1, 2019

• Marriage Penalty is Removed From All Tax Brackets, Except Highest Tax Bracket Income Tax Brackets Will Now be Adjusted for Inflation Using a Much Slower Measure Called Chained Consumer Price Index For All Urban Consumers.

Disclaimer: This blog is for information purposes only and is not intended to provide investing, accounting, tax or legal advice and should not be relied upon.