Trump has been pretty clear about wanting to simplify our tax code. I sat down with CPA Steven Stern to help explain these proposed changes. So, here are where things currently stand and how they might affect you:
Here’s list of the of the items discussed in the video, but be sure to watch the video for to learn how these changes specifically affect you:
Shift From 7 Income Tax Brackets To 3
Current (Married Filing Jointly):
10% bracket: $0 to $18,550
15% bracket: $18,550 to $75,300
25% bracket: $75,300 to $151,900
28% bracket: $151,900 to $231,450
33% bracket: $231,450 to $413,350
35% bracket: $413,350 to $466,950
39.6% bracket: $466,950 or more
Proposed (Married Filing Jointly)
12% bracket: $0 to $75,000
25% bracket: $75,001 to $224,999
33% bracket: $225,000 or more
Increasing the Standard Deduction
Trump proposes increasing the standard deduction from $12,600 to $30,000 for joint filers (from $6,300 to $15,000 for singles), and capping itemized deductions at $200,000 (joint) or $100,000 (single) and scrapping AMT.
Eliminate 3.8% Affordable Care Act Tax
The 3.8% Affordable Care Act tax on the lesser of net investment income or the amount by which your AGI exceeds $200,000 would also be eliminated.
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