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2018 Tax Law Change – Summary for Individuals

  1. Standard Deduction and Personal Exemption:  There will be an increase in the Standard Deduction and the Personal Exemption will be eliminated.  This is really a simplification of the prior law and is unlikely to lead to any significant change on the individual tax bill.

Standard deductions are increasing as follows:

  • Married Filing Jointly: Increase of $11,000 up to $24,000.
  • Single Filers and Married Filing Separate: Increase of $5,500 up to $12,000.
  • Head of Household: Increase of $8,450 up to $18,000.


  1. The tax rates are changing. Top income tax rate is now 37 percent and will affect individual with incomes of $500,000 and higher.  For married taxpayers, the top tax rate of 37 percent kicks in at $600,000 and up.
RateFor Unmarried Individuals, Taxable Income OverFor Married Individuals Filing Joint Returns, Taxable Income OverFor Heads of Households, Taxable Income Over
Table 1. Tax Brackets and Rates, 2018


3. Estate tax: In 2010 sweeping changes to the Estate Tax resulted in what was viewed as high lifetime estate and gift tax credits reaching over 5 Million per individual in 2017.  The 2018 changes double the exemption to $11.2 million per individual and $22.4 million per couple in 2018.  These numbers remain indexed for inflation.


4. Child tax credit: The child tax credit has been doubled.   It is up to $2,000 per qualifying child, those who are under 17.  There is also a $500 credit is available for dependents who do not get the $2,000 credit.


5. Mortgage interest: Mortgage Interest deduction cap is reduced by $250,000 to $750,000 for loans taken out after December 15, 2017.


6. State and Local Tax Deduction gets a cap: Now, the deduction is limited to $10,000.00 for taxes paid to the state and local governments.



For more information or to receive a consultation regarding your tax matters, Contact MMPE LAW.  Our tax professionals can help.  (573)996-3814 or info@mmpelaw.com