IRS releases 2026 income tax brackets with Trump law changes

[progree]

12. Raising the standard deduction was nice, but they got rid of the personal exemption ($4,050 for singles in 2017)

too with the tax law changes the 2017 Tax Cuts and Jobs Act (TCJA) which first took effect in 2018.

For singles, the standard deduction increased from $6,350 to $12,000, a $5,650 increase.

But the $4,050 personal exemption was eliminated.

So on net, the point that income begins to be taxed only increased by $5,650 minus $4,050 = $1,600 between 2017 and 2018.

For married filing jointly, it was double that -- a $3,200.increase in the point that income begins to be taxed.

Not a big windfall that some make it out to be, but still a benefit, along with lowered marginal tax rates, e.g. 15% to 12% and 25% to 22% and so on.

Myself, I itemized in both 2017 and 2018, so the higher standard deduction did me no good, but the loss of the $4,050 pesonal exemption hurt.

Dependent exemptions were also eliminated by the TCJA, but the child tax credit was doubled, the result being that as far as having children, it depended on what tax bracket someone was in whether on net that hurt or helped.

Note to myself: to Schwab 11/26/18 e;mail;b