President Trump signed The Tax Cuts And Jobs Act (TCJA) into law on December 22, 2017. This new tax law has three main provisions that affect all tax filers.

1) The Standard Deduction amounts were increased from $6,350 to $12,000 for Single tax filers, from $12,700 to $24,000 for Married Filing Joint tax filers and from $9,350 to $18,000 for Head of Household tax filers.

2) The Personal Exemption was repealed. The amount was $4,050 per person for Tax Year 2017.

3) The Tax Rates were lowered. The new tax rates are 10% (same), 12% (down from 15%), 22% (down from 25%), 24% (down from 28%), 32% (down from 33%), 35% (same) and 37% (down from 39.6%).

Other provisions in the new tax law that do not affect all tax filers will be covered in a separate post.