The beginning credit phaseout for the child tax credit increased in 2018 to $200,000 ($400,000 for joint filers). The refundable portion of the credit is limited to $1,500. The age cut-off remains at 17 (the child must be under 17 at the end of the year for taxpayers to claim the credit). Under the 2018 tax reform the credit is worth up to $2,000 per qualifying child. Increased Child Tax Credit and Income Ranges This new law now limits the deduction when it was previously unlimited (depending on your tax bracket). For tax years beginning after Decemand before January 1, 2026, a taxpayer may claim an itemized deduction of up to $10,000 ($5,000 for a married taxpayer filing a separate return) for taxes paid at the State and local level, including real and personal property, income, and/or sales taxes. One change, in particular, has been the subject of much debate in Congress, the state and local income tax (SALT) deduction, which is now limited to $10,000. Much has changed with the passing of the Tax Cuts and Jobs Act-changes that will benefit some taxpayers and negatively impact others. State, Local, and Property Taxes – Limited to $10K You may increase your standard deduction by $3,000 if both you and your spouse are blind. If you are Married Filing Jointly and you or your spouse is blind, you may increase your standard deduction by $1,500. If you are legally blind, you may increase your standard deduction by $1,850 if filing Single or Head of Household. If both you and your spouse are 65 or older, you may increase your standard deduction by $3,000. If you are Married Filing Jointly and you or your spouse is 65 or older, you may increase your standard deduction by $1,500. If you are age 65 or older, you may increase your standard deduction by $1,850 if you file Single or Head of Household. Under the new law, no exceptions are made to the standard deduction for the elderly or blind. The 2023 standard deduction is increased to $27,700 for married individuals filing a joint return $20,800 for head-of-household filers and $13,850 for all other taxpayers. Your bracket depends on your taxable income and filing status. 2023 Marginal Income Tax Rates and Brackets 2023 Marginal Tax Rate
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |