The child tax credit jumps from $1,000 to $2,000 per child, $1,400 of which is refundable even if you owe no U.S. The $4,050 personal exemption is eliminated under the Tax Cuts and Jobs Act. The charitable contributions deduction and the student loan interest deduction remain unchanged. The bill caps the deduction for SALT (state and local taxes) at $10,000 and limits mortgage interest deductions (for new loans taken out after December 15th) to $750,000 of debt (reduced from $1,000,000 previously). However, the Tax Cuts and Jobs Act eliminates many itemized deductions such as the e mployment-related moving expenses, tax-preparation fees, investment expenses, union dues, and unreimbursed employee expenses. The Tax Reform Bill increases the standard deduction to $12,000 for single filers (up from $6,350) and $24,000 for married couples filing jointly (up from $12,700). The 10% and 35% brackets remains unchanged. The highest bracket is reduced from 39.6% to 37%, while the 33% bracket is reduced to 32%, the 28% bracket is reduced to 24%, the 25% bracket is reduced to 22%, and the 15% bracket is reduced to 12%. The Tax Reform Bill retains the current 7 income tax brackets but lowers tax rates for 5 of these brackets. If you’re living abroad, what do you need to know? Can you expect to pay more or less or get a bigger refund? Let’s see.

That means when you file in early 2019, your tax return will reflect these changes, the most sweeping reform the U.S. President Trump’s much-anticipated 'Tax Cuts and Jobs Act' bill goes into effect in 2018.

Trump flat tax