Elimination of Individual Mandate (penalty paid for not having health insurance)
NOTABLE ITEMIZED DEDUCTIONS
Deductible
Mortgage interest up to $750,000 of indebtedness on 1 or 2 residences for mortgages taken out after 12/15/2017
Points on home mortgages
Business interest
Investment interest up to net investment income
Either state or local income taxes, or state and local sales taxes – plus state and local real property taxes, and personal property taxes. Combined deduction for state property and income taxes is limited to $10,000
Medical and dental expenses to the extent that such expenses exceed 10% of Adjusted Gross Income
Non-Deductible Interest Expenses
Credit card
Auto loans
Home equity loans
Prepaid interest other than points on home mortgage
Most other consumer loan interest
INCOME TAX BRACKETS
Rate
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Trusts & Estates
10%
$0-$9,700
$0-$19,400
$0-$9,700
$0-$13,850
$0-$2,600
12%
$9,700-$39,475
$19,400-$78,950
$9,700-$39,475
$13,850-$52,850
–
21%
–
–
–
–
–
22%
$39,475-$84,200
$78,950-$168,400
$39,475-$84,200
$52,850-$84,200
–
24%
$84,200-$160,725
$168,400-$321,450
$84,200-$160,725
$84,200-$160,700
$2,600-$9,300
32%
$160,725-$204,100
$321,450-$408,200
$160,725-$204,100
$160,700-$204,100
–
35%
$204,100-$510,300
$408,200-$612,350
$204,100-$306,175
$204,100-$510,300
$9,300-$12,750
37%
$510,300+
$612,350+
$306,175+
$510,300+
$12,750+
PERSONAL EXEMPTION
No longer allowed, beginning in 2018
STANDARD DEDUCTIONS
Single
Married Filing Jointly
Married Filing Separately
Head of Household
$12,200
$24,400
$12,200
$18,350
MODIFIED ADJUSTED GROSS INCOME TAX BASE THRESHOLDS FOR TAXATION OF SOCIAL SECURITY BENEFITS
% Taxed
Single
Married Filing Jointly
Married Filing Separately
Head of Household
50%
$25,000-$34,000
$32,000-$44,000
Depends on whether spouses live together during the tax year
$25,000-$34,000
85%
$34,000+
$44,000+
Depends on whether spouses live together during the tax year
$34,000+
QUALIFIED LTC PREMIUM DEDUCTIBILITY
Age
<40
41-50
51-60
61-70
>70
Amount
$420
$790
$1,580
$4,220
$5,270
2018
NOTABLE ITEMIZED DEDUCTIONS
Deductible
Mortgage interest up to $750,000 of indebtedness on 1 or 2 residences for mortgages taken out after 12/15/2017
Points on home mortgages
Business interest
Investment interest up to net investment income
Either state or local income taxes, or state and local sales taxes – plus state and local real property taxes, and personal property taxes. Combined deduction for state property and income taxes is limited to $10,000
Medical and dental expenses to the extent that such expenses exceed 7.5% of Adjusted Gross Income
Non-Deductible Interest Expenses
Credit card
Auto loans
Home equity loans
Prepaid interest other than points on home mortgage
Most other consumer loan interest
INCOME TAX BRACKETS
Rate
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Trusts & Estates
10%
$0-$9,525
$0-$19,050
$0-$9,525
$0-$13,600
$0-$2,550
12%
$9,525-$38,700
$19,050-$77,400
$9,525-$38,700
$13,600-$51,800
–
21%
–
–
–
–
–
22%
$38,700-$82,500
$77,400-$165,000
$38,700-$82,500
$51,800-$82,500
–
24%
$82,500-$157,500
$165,000-$315,000
$82,500-$157,500
$82,500-$157,500
$2,550-$9,150
32%
$157,500-$200,000
$315,000-$400,000
$157,500-$200,000
$157,500-$200,000
–
35%
$200,000-$500,000
$400,000-$600,000
$200,000-$300,000
$200,000-$500,000
$9,150-$12,500
37%
$500,000+
$600,000+
$300,000+
$500,000+
$12,500+
PERSONAL EXEMPTION
No longer allowed, beginning in 2018
STANDARD DEDUCTIONS
Single
Married Filing Jointly
Married Filing Separately
Head of Household
$12,000
$24,000
$12,000
$18,000
MODIFIED ADJUSTED GROSS INCOME TAX BASE THRESHOLDS FOR TAXATION OF SOCIAL SECURITY BENEFITS
% Taxed
Single
Married Filing Jointly
Married Filing Separately
Head of Household
50%
$25,000-$34,000
$32,000-$44,000
Depends on whether spouses live together during the tax year
$25,000-$34,000
85%
$34,000+
$44,000+
Depends on whether spouses live together during the tax year
$34,000+
QUALIFIED LTC PREMIUM DEDUCTIBILITY
Age
<40
41-50
51-60
61-70
>70
Amount
$420
$780
$1,560
$4,160
$5,200
The information presented here is not intended to be a comprehensive analysis. Chernoff Diamond is a benefits advisory firm and does not provide tax or legal advice. Individuals or Employers should consult with qualified legal and/or tax counsel for guidance in respect of matters of law, tax and related regulation.
Chernoff Diamond and their registered representatives are currently licensed to sell variable life and annuity products, as well as other securities products, in the states of California (#0782382, #0A04009), Connecticut, Florida, Georgia, Kentucky, Maryland, Massachusetts, New Jersey, New York, North Carolina, South Carolina and Virginia (#3078822.1). Residents of other states should consult with a local registered representative for securities products.
Proper state registration is mandatory prior to conducting business in any state.
Securities offered through M Holdings Securities, Inc., A Registered Broker/Dealer, Member FINRA / SIPC. Check the background of this Firm and/or investment professional on FINRA's BrokerCheck. Chernoff Diamond is a division of USI and is independently owned and operated. Chernoff Diamond is a member of the M Financial Group. Please visit mfin.com/DisclosureStatement.htm for further details involving this relationship. For important information related to M Securities, refer to the M Securities’ Client Relationship Summary (Form CRS) by navigating to https://mfin.com/m-securities.
3078822.1
