President Trump signed the “Tax Cuts and Jobs Act” into law, and it makes major changes to the U.S. tax code for both individuals and corporations. Yahoo News states, the bill represents the most significant tax changes in the United States in more than 30 years.
With the that in mind, here’s a guide to all of the changes that will go into effect — the new tax brackets, modified deductions and credits, corporate tax changes, and more.
The 2018 tax brackets
The final bill kept a seven-bracket structure but with mostly lower tax rates.
The marriage penalty is (almost) eliminated
The marriage penalty has been effectively eliminated for everyone except married couples earning more than $400,000.
Standard deduction and personal exemption
The standard deduction has roughly doubled for all filers, but the valuable personal exemption has been eliminated.
Capital gains taxes
Short-term gains are likely taxed at a different rate than they formerly were. In addition, the three capital gains income thresholds don’t match up perfectly with the tax brackets.