Summary of United States House of Representatives Tax Cut and Jobs Bill

Repeal of the Alternative Minimum Tax

Individual Tax Rates: The House bill would consolidate the seven current federal income tax brackets into four: 12%, 25%, 35% and 39.6%.

Personal Exemptions: The House bill would eliminate the current personal exemption for taxpayers and their dependents (currently $4,050.00 per person).

Standard Deduction: The House bill would nearly double the standard deduction to $12,000 for single filers and $24,000 for married couples. (adjusted for inflation), which would reduce the incentive to itemize deductions for many taxpayers.

Child Tax Credit: The House bill would increase the child tax credit from $1,000 to $1,600 for each qualifying child.  

The House also includes a new $300 credit for nonchild dependents, as well as a $300 “family flexibility credit” for the taxpayer (or both spouses, for a joint return). The nonchild dependent credit and the family flexibility credit would be effective for tax years ending before January 1, 2023.

Mortgage Interest Deduction: The House bill would limit the mortgage interest deduction up to $500,000 of debt for homes purchased after November 2, 2017, currently the limit is $1,000,000.00.

State and Local Taxes Deduction: The House bill would eliminate state and local tax deductions.

Property Tax Deduction:  The house Bill would limit this to $10,000.00 per year.

Medical Expense Deduction: The House bill would eliminate medical expense deduction.

Estate Tax: The House bill would essentially double the gift, estate and generation-skipping transfer (GST) tax exemptions to $10 million (adjusted for inflation) per person and eliminate the estate and GST taxes entirely after 2023. That same year, it would reduce the gift tax rate to 35%. 

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