Most tax rates have been reduced. The 2018 tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
Deduction for personal exemptions suspended. You can’t claim a personal exemption deduction for yourself, your spouse, or your dependents.
The following changes have been made to itemized deductions that can be claimed on Schedule A.
- Your itemized deductions are no longer limited if your AGI is over a certain amount.
- You can deduct the part of your medical and dental expenses that is more than 7.5% of your AGI.
- Your deduction of state and local income, sales, and property taxes is limited to a combined, total deduction of $10,000 ($5,000 if married filing separately).
- You can no longer deduct job related expenses or other miscellaneous itemized deductions that were subject to the 2% of AGI floor. You may still deduct certain other items on Schedule A, such as gambling losses.