12 Big Tax Changes for 2018

12 Big Tax Changes for 2018

If you've watched any news this year, you'll know that sweeping tax law changes are coming. But, how will they affect you and your family?

391
views

Big tax changes to consider for 2018: If you watch the news and keep up with current events, you will know that in recent months, the House and Senate have renegotiated and revamped many of the tax laws. After many months of back and forth, the changes are here and there are some things that you need to know. Here are the changes you can expect to see this coming tax season.

1. Tax Bracket Changes

Tax exemptions and rates are primarily based upon income and there are still 7 major tax brackets to consider. Take the time to view the below information to first see where you fall in line with these 7 income levels. Note that there is now a new lower top tax of 37%. This is, in fact, lower than previous rates proposed by the senate and house majority.

Ok, let's meet the tax brackets:

• 10% Tax $9,525 individuals; $19,050 for married couples and those filing jointly
• 12% Tax between $9,525 and $38,700, individuals; $19,050 to $77,400 filing jointly
• 22% Tax between $38,700 and $82,500, individuals; $77,400 to $165,000 jointly
• 24% Tax between $82,500 and $157,500, individuals; $165,000 to $315,000 jointly
• 32% Tax between $157,500 and $200,000, individuals; $315,000 to $400,000 jointly
• 35% Tax between $200,000 and $500,000, individuals; $400,000 to $600,000 jointly
• 37% Tax over $500,000 individuals; over $600,000 jointly





2. Deductions

This year, filers have the ability to deduct lower than their taxable income. This is due to the double standard deduction policy. Single filers can utilize between $6,350 to $12,000 and those filing jointly can file between $12,700 and $24,000 deductions. These higher figures are the result of eliminating many of the traditional deductions allowed to tax payers. It is likely that more tax payers will choose this avenue as opposed to itemizing deductions. If your Adjusted Gross Income (AGI) is below $66k, you might even be able to file simple taxes for free.

3. Personal Exemptions Scrapped

This year, filers have the ability to deduct lower than their taxable income. This is due to the double standard deduction policy. Single filers can utilize between $6,350 to $12,000 and those filing jointly can file between $12,700 and $24,000 deductions. These higher figures are the result of eliminating many of the traditional deductions allowed to tax payers. It is likely that more tax payers will choose this avenue as opposed to itemizing deductions.

4. Higher Medical Expense Deductions

Medical expenses could previously be deducted for up to 10% of your gross adjusted income. The figure has been lowered to 7.5% for this season and beginning in 2019, there is no longer a penalty in place for not having medical insurance.

5. Fewer Taxpayers Hit AMT

The Alternative Minimum Tax (AMT) is placed on those claiming higher income as a separate tax. The new exemption amount for the AMT is up to $109,400 for those married and filing jointly and to $70,300 for those filing as single. Exemptions phase out at $1 million for married filers and $500,000 for single filers. This means that fewer people will reach the AMT threshold.

6. What About Family Exemptions?

As stated above, the $4,050 that was the standard for filing dependents has been eliminated. Those will larger families will be affected most as they will no longer be able to take advantage of that sometimes large tax break.

7. Higher Child Tax Credit

The above deduction being taken away might seem like a let down to some families, but luckily, the government has made up for it. They have chosen to increase the child tax credit from $1,000 per child to $2,000. This tax credit is for single parents with a reflective income of up to $200,000 and married couples and those filing jointly for up to $400,000. There is also a new $500 credit for adult dependents.

8. 529 Plans Used Outside of College Expenses

Private school kids are getting a bit of an upgrade with 529 plans coming available for use in grades K-12. Up to $10,000 per year can be used from the college savings program for primary private school education. These funds, however, do not cover homeschooling expenses. The top tax software actually offers special codes just for students.

9. Lower Mortgage Interest

Homeowners get a break with the ability to deduct interest on their current home up to $1 million, but those looking to purchase a home will have to contend with a cap of $750,000 for deducted interest.

10. State, Local, and Property Tax

The debate lingers as to which states allow for state and local tax deductions, but it is still available for taxpayers to deduct their property tax, and either sales tax or income, but only up to $10,000. So, can you get out of that state tax bill? Um, no. Haven't you heard that quote about death and taxes?

11. Corporate Tax Rate Drop

Corporate taxes were on the table this year and those taxes have been reduced drastically from 35% to 21%. This is currently the largest drop in history and as of 2026, the change will become permanent. This tax cut has certainly given a short-term boost to Wall Street, but the jury is out on the long-term benefit to Main Street.

12. Pass Through Business Lower Tax Rates

Partnerships, S Corporations, and Sole Proprietorships are known as pass through businesses. These businesses have historically been saddled with high self employment taxes while larger businesses benefit, but these companies are now allowed a bit of a break. Pass through business owners are now allowed to deduct up to 20% of their total annual income instead of resorting to itemization as in years past.

In conclusion: Taxes evolve with time and this year has certainly been a doozy of change for the 2018 tax season. If you have yet to brush up on the new laws and see where you stand, it is time to take advantage of the space between now and filing day and find out which laws you are subject to following and which ones you may be exempt from. As always, file your taxes responsibly to ensure that you never have to hear the most frightening word of all, "AUDIT." Happy (almost!) Tax Season!

Popular Right Now

Speaking From Experience, Asian Beauty Standards Need To Chill Out

*Vividly recalling my mom trying to whiten my face with homemade face masks.

3
views

If you are unfamiliar with the beauty standards in Asia and some parts of the middle east and north Africa, here, let me tell you. This article will be informative and also very rant-like so I would recommend sipping on some tea as you read this.

Growing up in a South Asian household, I was criticized on my appearance so much and still am, I know very well that this isn't just my family, but a cultural understanding of what beauty is supposed to be like and how that is engraved in every woman's mind in Asia.

Here's what is considered beautiful - super fair skin, big eyes, very thin body, hairless, and a small and pointed nose.

And yet every auntie in Asia expects girls to magically look like that and abide by such standards like we can be born with them or control them which is literally so stupid. I can't fathom how much this standard has ruined people's lives physically and mentally.

Let's break down the logistics of these standards real quick.

When it comes to fair skin, if you are "lucky" you are either born with it in your genes (or natural selection) or your skin matches where you are from and to help adapt to UV rays in Asia you have darker skin which makes sense.

When it comes to eye shape, it is still a mystery to scientists but if you physically cannot control what kind of eyes you are born with, whether you have monolid, wide-set eyes, or small eyes, it's simply something you cannot control.

You would think that being skinny is possible and it sure is, but in this case, I'm talking about looking almost malnourished. No matter how thin you are, you will constantly be criticized. I have literally witnessed my skinniest of cousins being told that they look "healthy," which translates to fat. THE WORD HEALTHY MEANS FAT. C'MON.

Hairlessness. Are you sh***ing me??

Us South Asians are literally known for our body hair, and you expect us to get waxed up at age 10 and not be traumatized? Making body hair sound so disgusting even though it is a normal and natural thing? Ridiculous. And then finally, having a small nose doesn't even make any sense because the shapes of noses are based on adapting to humidity levels and climates where you are from and if you don't have a bigger nose than people with European backgrounds, then you are just as "lucky" than those who were born hairless, fair-skinned, big-eyed, and high-metabolism-ed.

From personal experience, I have dealt with so much criticism and thankfully it has never impacted me as much mentally than it could have.

My parents are on the fair side, and I am fair/medium skin toned, but the catch with me was that unlike my cousins, I played sports growing up and yes, they were outside and yes, that meant that I got super tan. The calls that my mom would get from her mom about how she needed to put Fair & Lovely on me and lemon juice, and yogurt and all these things just to whiten my complexion was too much. It started literally the age of 10 and never stopped. I have grown out of the standard, but to this day my mom buys foundation shades that are at least 3 shades lighter than her actual skin color all because of this cultural standard.

I was blessed with big eyes, but I have seen my friends who are Chinese and Korean who have balled their eyes out wishing they didn't have monolids. It was heartbreaking to watch and that's when it really hit me how stupid these standards are. Even family friends who don't have big eyes have been doing makeup to make their eyes appear larger from a young age.

I was never skinny, I was either fit or chunky and it still goes back and forth for me when it comes to body type. And you best believe that whenever I would go back to the motherland, the aunties would look me up and down, pause, and tell me I look "healthy," which was every girl's nightmare. The pressure was always there, especially with my mom being a size 00 all her life while I fluctuated from 2-6.

When it comes to having body hair, my mom was very good about not making it a big deal when I was little, but the moment I went overseas, my aunts looked at me and took me to the salon to get my legs, arms, and stache waxed. I have gotten my entire body waxed so many times that it doesn't even hurt in the slightest, I have gotten used to it.

Oof, and having a small and pointed nose is like every brown girl's dream, at least mine anyways. This is the one thing that I have always been insecure about and absolutely hate about myself. Not only nose jobs, but surgeries to fulfill all of these Asian beauty standard "needs" are becoming very popular and common throughout Asia which is sad, but we need to make an end to this.

It's 2019, I can be as hairy as I want.

Related Content

Connect with a generation
of new voices.

We are students, thinkers, influencers, and communities sharing our ideas with the world. Join our platform to create and discover content that actually matters to you.

Learn more Start Creating

5 Ways to Use Your Smartphone to Lose Weight + Get Fit

Your iPhone can be a great tool for diet and fitness, and many of the best features and apps are free! Here's how to use your smartphone to lose weight and get in shape

30
views

Did you know that your new iPhone is more than a million times more powerful than all of NASA's computing power in 1969? You could definitely say that the smartphone is a giant leap for mankind.

You probably rely on your smartphone for dozens of things every day, but did you know your phone can be your health and fitness coach? Some modern devices come with health tools built-in, but there are hundreds of apps you can install to tailor it to your own needs. Smartphones could be the answer to the global problem of obesity and the rising level of diseases like diabetes.

The broad range of health and fitness apps available means you can use technology to achieve whatever goal you choose. For example, a running app can be used to train and prepare for a 5k or marathon. If you want to reduce your alcohol consumption or increase the amount of fruit and vegetables in your daily diet, there are apps that can help.

The following smartphone tools can improve your fitness and help you to lose weight, and most are free.

#1. Heart rate monitors

The free Health app on an iPhone offers a range of options and ways to monitor your fitness, including a heart rate monitor. For older devices and Android smartphones, there are apps available to track your heart rate and stress levels.

Heart rate apps work using the device's built-in camera and are a convenient way of taking a heart reading without the need for a fitness tracker or other equipment. Knowing your heart rate can help you to exercise at the correct level of intensity.

Best heart rate monitor app for iPhone / Android? Try Instant Heart Rate from Azumio. ($4.99 for iPhone, free for Android)

#2. Activity monitors

Monitoring your physical activity can be very helpful if you want to improve your fitness. An app like Google Fit can track the number of steps you take in a day and be used to track your progress to a goal. Most experts suggest a minimum of 10,000 steps a day. Tracking your activity levels and BMI can motivate you to find the time to exercise, and it's rewarding to see what you're achieving.

Best activity monitor app for iPhone / Android? Try Human Activity Tracker from Mapbox

#3. Exercise reminders

If you find it hard to build exercise into your daily routine, a nudge from your smartphone may be what you need. Google's (free) Calendar app can be used to set goals like 'Run 3 miles twice a week.'

The free app will suggest times of the day you can fit this in and remind you when it's time to put your shoes on. Some apps, like MapMyRun, offer the option to become part of a virtual community where you can encourage each other and share tips and ideas for sticking to your exercise plans.

Best free exercise reminder app for iPhone / Android? Try Johnson & Johnson's Official 7 Minute Workout

#4. Mindfulness apps

As well as helping to improve your physical fitness, there are smartphone apps focussing on mental well-being. Mindfulness has become very popular over the past couple of years, and an app is a great way to experiment with some of the techniques.

Your smartphone can take you through guided meditation exercises for improving well-being and aiding relaxation. Mindfulness apps can also help you to sleep better, and this, in turn, will improve your physical health and appetite for exercise.

Best mindfulness app for iPhone/ Android? Try Insight Timer for free, or Aura for a monthly ($7.99) or annual fee.

#5. Virtual personal trainers

If you lack the motivation to stick to an exercise program but can't afford a personal trainer, a virtual coach on your smartphone could be the answer. Basic versions are free, but for more advanced personal trainer apps charge a subscription fee.

They can suggest exercises to target different areas of the body, track your progress towards goals and even play music to keep you moving. Some apps also allow you to video conference with a real personal trainer and find local groups you can exercise with.

Weight Watchers now offers personal coaching that adds unlimited phone calls and text messages to your WW Digital subscription, but it will cost you more than FreeStyle (Online) only.

Best workout apps for iPhone or Android? Try MyFitnessPal, Map My Fitness, PEAR Personal Fitness Coach, or Workout Trainer from Skimble

Weight Loss & Fitness: Also Consider Wearing a Smartwatch

Smartwatches and other wearable devices like FitBit are taking fitness apps to the next level. Although I don't like watches and wearables for email or business-related use, they can be great for health and weight loss. Think about your current exercise goals and needs, and try some apps to see how they can help. (Just try not to lose them!)

Related Content

Facebook Comments