Higher standard deduction – Almost double the current standard deduction amount
The maximum child tax credit is doubled to $2,000 per qualifying child, and up to $1,400 can be refundable (meaning you can get this amount as refund even if you don’t owe any federal tax). The credit would be made available for high earners as well – Great News for people with kids!!
Taxpayers with pass-through businesses (includes Sole proprietorships, LLCs, Partnerships and S corps) who pay their share of business taxes on individual returns will be able to deduct 20% of business income
Corporate tax rate has been cut from 35% to a flat 21% on all profits
For itemized returns, there is a $10,000 cap on combined state and local taxes and property taxes. This will affect the homeowners in higher-tax states which include NY, NJ, CT, CA, VA etc.
Foreign real estate property taxes can no longer be deducted – If you are paying property taxes for your home in India, these taxes can no longer be deducted
If you take out a new mortgage on a first or second home you would only be allowed to deduct the interest on debt up to $750,000, down from $1 million today. Applicable for homes bought after Dec 15, 2017 or later. Homeowners who already have a mortgage would be unaffected by the change
Deductions that are disappearing next year– Moving expenses, Unreimbursed employee expenses, tax preparation fees, casualty & theft losses (except those related to a federally declared disaster)