5 Notable Personal Tax Changes in the New Tax Code

Posted by Hannah Lapin on Feb 7, 2018 10:59:09 AM

Tax Time-1

To say that the new tax code is complicated would be an understatement. The final bill, which was signed by President Trump on December 22, 2017, is more than 500 pages long. Not to mention, the changes are substantial and currently in effect for the 2019 tax season. We have simplified and highlighted five notable changes for personal taxes:

Standard Deductions:

  • For single tax filers, the standard deduction has increased from $6,500 to $12,000. For joint filers, the standard deduction has increased from $12,7000 to $24,000.  This near doubling of the standard deduction serves as an incentive for people to claim a standard deduction in 2019 instead of an itemized one.

Child Tax Credit:

  • Under the new tax code, parents with children under 17 can receive a tax credit of $2,000 per child. Formerly, the tax credit was only $1,000 per child.

Mortgage Interest Deduction:

  • Anyone who takes out a mortgage on a house between December 15, 2017 and December 31, 2025 can only deduct interest up to $750,000, or $375,000 for married taxpayers filing separately. Mortgages taken out prior to December 15, 2017 can be deducted up to $1,000,000, or $500,000 for married taxpayers filing separately.

Obamacare Penalty:

  • Previously, tax filers who have gone three consecutive months or more without health insurance had to pay a 2.5% gross income penalty up to a maximum of $2,085. The new tax code has repealed this penalty.

529 Plans:

  • 529 plans have been expanded to include K-12 students. Parents can now use up to $10,000 per year from 529 accounts tax free to pay for private school tuition.

This is just a small selection of the many upcoming tax changes. To learn more about personal tax changes, visit Investopedia. To learn more about corporate tax changes, visit our our Tax Page

More Resources

Related: 5 Tax Deductions Every Landlord Should Know AboutBonus Depreciation and Section 179 of the New Tax CodeHow Landlords can Form LLCs and Reap Tax Benefits in 2018

Topics: Taxes

Most Popular

Disclaimers: Please note that our blog contains affiliate links, and at no additional cost to you, Visio Lending will earn a commission if you decide to make a purchase after clicking through the link. As an Amazon Associate, I earn from qualifying purchases. Please understand that we have experience with all of the companies we recommend, and choose to refer our borrowers and partners because they are helpful and useful, not because of the small commissions we make. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.


The information in this blog has been prepared solely for informational purposes. The contents are based upon or derived form information generally believed to be reliable although Visio accepts no liability with regard to the user's reliance on it. For legal advice, please contact your counsel.