Tax Law Changes 3 of 8

Tax rates on long-term capital gains and qualified dividends do not change. Currently, your capital gains and dividends rate depends on your tax bracket. But with the bracket changes, Congress decided to set income thresholds instead.The 0% rate will continue to apply for taxpayers with taxable income under $38,600 on single-filed returns and $77,200 on joint returns. The 20% rate starts at $425,800 for singles and $479,000 for joint filers. The 15% rate applies for filers with incomes between those break points. The 3.8% surtax on net investment income remains,
kicking in for single people with modified AGI over $200,000…$250,000 for marrieds. The law keeps the individual alternative minimum tax with higher exemptions: $109,400 for joint return filers and $70,300 for singles and household heads. Additionally, the exemption phaseout zones start at much higher income levels… above $1 million for couples and $500,000 for single people and heads of household. Obamacare’s individual mandate is on the way out. The requirement that folks have health insurance, qualify for an exemption, or pay a fine is repealed for post-2018 years. Keep in mind the mandate continues to apply for 2018.