GOP Final Tax Bill

GOP finalized the tax reform bills and plans to vote on it next week. Here is what the bill contains:

1. Seven individual income tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%

2. No more personal exemption but increase the standard deductions: 12k for an individual or 24k for a family.

3. Drop the corporate tax to 21%

4. Pass through business would set a 20% business income deduction for the first 315k in income. (everyone should incorporate.)

5. Eliminate the corporate AMT. Individual AMT stays, but said to be for 1 million dollar income families or 500k income individuals.

6. The child tax credit is 2k per child

7. Limit tax deductions. It allows the deduction of up to 10k in state and local income tax, property tax and sales tax

8. The mortgage interest deduction cap at 750k

9. Student loan tax deduction, medical expense tax deduction and graduate student tuition waivers all stay

10. 401K plan stays the same

See what the bill means for you here: http://taxplancalculator.com/