WASHINGTON — With major tax law changes impacting every taxpayer, the Internal Revenue Service has developed an electronic publication and other online resources designed to help people understand the effects of tax reform.
Last fall, the IRS released an online Tax Reform publication, providing an overview of these and other key changes:
- Tax rates lowered. Starting in 2018, there are seven income tax brackets, ranging from 10 percent to 37 percent.
- Standard deduction nearly doubled over last year. For 2018, the basic standard deduction is $12,000 for singles, $18,000 for heads of household and $24,000 for married couples filing a joint tax return.
Various deductions limited or discontinued. For example, the state and local tax deduction is limited to $10,000, $5,000 if married and filing a separate return, and new limits apply to mortgage interest.
Child Tax Credit doubled, and more people now qualify. The maximum credit is now $2,000 for each qualifying child under age 17.
New credit for other dependents. A $500 credit is available for each dependent who does not qualify for the Child Tax Credit.
Personal and dependency exemptions suspended. This means that an exemption can no longer be claimed for a tax filer, spouse and dependents.
Other links for taxpayers:
Taxpayers can find answers to questions, forms and instructions and tools online at IRS.gov.