For, families with children the
Child Tax Credit is doubled from $1,000 per child to $2,000. In
addition, the amount that is refundable grows from $1,100 to $1,400. The bill
also adds a new, non-refundable credit of $500 for dependents other than
children. Finally, it raises the income threshold at which these benefits phase
out from $110,000 for a married couple to $400,000.
State and local taxes…Home mortgages:
The bill also caps the amount of mortgage indebtedness on new home purchases on
which interest can be deducted at $750,000 down from $1,000,000 in current law.
The bill eliminates the tax penalty for not having health insurance after
December 31, 2018. It also temporarily lowers the floor above which
out-of-pocket medical expenses can be deducted from the current law floor of 10%
to 7.5% for 2017 and 2018
So for 2018, you can deduct medical expenses that are more than 7.5% of your
adjusted gross income as opposed to the higher 10%.
Self-employed (contractors, entrepreneurs, sole proprietors) and small
businesses:
The bill has a myriad of changes for business. The biggest includes a reduction in the top corporate rate to 21%, a new 20% deduction for incomes from certain type of “pass-through” entities (partnerships, S Corps, sole proprietorships), limits on expensing of interest from borrowing, almost doubling of the amount small businesses can expense from the 2017 Section 179 amount of $510,000 to $1,000,000, and eliminates the corporate alternative minimum tax (AMT).