Aron Govil shares What you need to know about the new US tax laws

The new US tax laws, which were signed into effect on December 22, 2017, have caused a great deal of confusion among taxpayers says Aron Govil.

While there are many changes to the tax code, some of the most significant ones include the following:

• The new standard deduction has been increased from $6,350 to $12,000 for single taxpayers and from $12,700 to $24,000 for married couples filing jointly.
• The Child Tax Credit has been doubled, from $1,000 to $2,000 per child.
• The maximum amount of state and local taxes that can be deducted has been capped at $10,000.
• The mortgage interest deduction limit has been lowered from $1 million to $750,000.

The purpose of this article is to provide an overview of the most important changes to the tax code under the new US tax laws.

Standard Deduction:

The standard deduction has been increased from $6,350 to $12,000 for single taxpayers and from $12,700 to $24,000 for married couples filing jointly. This means that more taxpayers will be able to take a deduction without having to itemize their deductions.

Child Tax Credit:

The Child Tax Credit has been doubled, from $1,000 to $2,000 per child. In addition, the credit is now available to more taxpayers, as it is no longer phased out for married couples earning over $400,000.

State and Local Taxes:

The maximum amount of state and local taxes that can be deducted has been capped at $10,000. This will limit the deduction for taxpayers who live in states with high taxes explains Aron Govil.

Mortgage Interest Deduction:

The mortgage interest deduction limit has been lowered from $1 million to $750,000. This will impact homeowners who have large mortgages.

Here is an overview of some of the most important changes.

Individuals:

The new tax laws include a number of changes that will impact individuals. One of the most significant changes is the increase in the standard deduction. The standard deduction has been increased from $6,350 to $12,000 for single taxpayers and from $12,700 to $24,000 for married taxpayers filing jointly.

Another change that will benefit individual taxpayers is the increase in the child tax credit says Aron Govil. The child tax credit has been increased from $1,000 to $2,000 per child.

The new tax laws also include a number of changes that will impact taxpayers with high incomes. The top marginal tax rate has been lowered from 39.6% to 37%. The threshold for the top marginal tax rate has been increased from $470,000 to $500,000 for married taxpayers filing jointly.

Businesses:

The new tax laws include a number of changes that will impact businesses. One of the most significant changes is the reduction in the corporate tax rate. The corporate tax rate has been reduced from 35% to 21%.

Another change that will benefit businesses is the repeal of the alternative minimum tax (AMT). The AMT is a tax that was originally intended to ensure that businesses pay a minimum amount of taxes, but it ended up affecting a large number of businesses.

The new tax laws also include a number of changes that will impact small businesses. One of the most significant changes is the increase in the amount of the pass-through deduction. The pass-through deduction has been increased from 20% to 30%.

FAQs:

Q: What is the standard deduction?

A: The standard deduction is a tax deduction that is available to taxpayers who do not itemize their deductions. The standard deduction has been increased from $6,350 to $12,000 for single taxpayers and from $12,700 to $24,000 for married couples filing jointly.

Q: What is the child tax credit?

A: The child tax credit is a tax credit that is available to taxpayers who have children. The child tax credit has been increased from $1,000 to $2,000 per child.

The new US tax laws include a number of changes that will impact individuals and businesses. Some of the most significant changes include the increase in the standard deduction, the increase in the child tax credit, and the reduction in the corporate tax rate. Taxpayers should consult with a tax professional to determine how these changes will impact

Conclusion:

The new US tax laws are a complex set of changes that will affect individuals and businesses in a number of ways explains Aron Govil.

Here is an overview of some of the most important changes.