Tax Reform | Tax Guardian

Six key changes under the tax reform plan

Tax is mandatory, and you should be aware of tax reforms for the year 2019.

Standard Deduction

The standard deduction is increased:

If Single or Married File Separately then $12,200 Previously it was $12000
If Married File Jointly then $24,400 previously it was $24000
The Head of Household is $18,350 previously it was $18000

Personal Exemption

The personal exemption is excluded:

It is eliminated in the tax reforms of 2019. Previously personal exemption was $4,050.

Child Tax Credit

The Child Tax Credit is increased:

The new limit is $2,000, whereas in the previous period the allowed value was $1,000. Additionally, a new $500 credit for non-child dependents is introduced.

State and Local tax

A new cap provided:

A deduction of $10,000 is now allowed, whereas there was no cap provided previously.

ACA Individual Mandate

It is Repealed:

Effective from January 01, 2019, there will be no tax penalties on individuals who go without healthcare coverage.

Mortgage Interest

Two significant deductions:

A deduction of interest on the mortgage was previously allowed of $1 million, but it is now $750,000 is allowed.
Interest in home-equity loan deduction is eliminated.

2019 Income Tax Brackets

The tax reform bill keeps the same seven tax bracket structure, but most taxpayers will see lower tax rates.
The income thresholds were also adjusted.

Tax Rate	Individual	Married Filing Separate	Head of Household	Married Filing Joint
10%	$0 - $9,525	$0 - $9,525	$0 - $13,600	$0 - $19,050
12%	$9,526 - $38,700	$9,526 - $38,700	$13,601 - $51,800	$19,051 - $77,400
22%	$38,701 - $82,500	$38,701 - $82,500	$51,801 - $82,500	$77,401 - $165,000
24%	$82,501 - $157,500	$82,501 - $157,500	$82,501 - $157,500	$165,001 - $315,000
32%	$157,501 - $200,000	$157,501 - $200,000	$157,501 - $200,000	$315,001 - $400,000
35%	$200,001 - $500,000	$200,001 - $300,000	$200,001 - $500,000	$400,001 - $600,000
37%	over $500,000	over $300,000	over $500,000	over $600,000

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