-Editor's Commentary-

Several of our commentary have been highlighting the changes coming from the new Tax Cuts and Jobs Act passed at the end of 2017. Here is a reminder of the changes that are to come and should be taken note of this year.

Under the TCJA, 2018 ordinary tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.The top rate now applies to joint filers whose taxable income is over $600,000 (as opposed to $470,700 for 2017.)

For 2018, joint filers can enjoy a standard deduction of $24,000 (versus $12,700 for 2017). The new standard deduction for heads of household is $18,000, and single taxpayers (including married taxpayers filing separately) can claim a standard deduction of $12,000. However, the TCJA suspends the deduction for personal exemptions.

Before the TCJA, taxpayers could deduct interest paid on up to $1 million ($500,000 if married filing separately) of home acquisition debt (debt used to buy or substantially improve a first or second home). Also, taxpayers could deduct interest paid on up to $100,000 ($50,000 if married filing separately) of home equity debt, regardless of how the proceeds were used. For 2018–2025, the TCJA reduces the limit on home acquisition debt to $750,000. For married taxpayers filing separately, the debt limit is halved to $375,000. Also, the TCJA generally disallows home equity debt interest. However, the IRS recently advised homeowners that interest paid on home equity loans and lines of credit may be deductible if the funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan. In other words, such loans will be treated as home acquisition debt subject to the new $750,000/$375,000 limits. Thanks to a set of grandfather rules, the new limits don’t apply to home acquisition debt that was taken out on or before 12/15/17 (or taken out on or before that date and re-financed later). This is good news for existing homeowners. In addition, it may be beneficial to refinance your home using an interest-only mortgage. For example, if you refinance $1 million of pre-TCJA home acquisition debt with a new $1 million interest-only loan, you can continue to deduct all the interest under the grandfather rules. In contrast, if you gradually make principal payments on your $1 million of pre-TCJA home acquisition debt, you won’t be able to treat any portion of an additional home loan taken in 2018–2025 as home acquisition debt because your existing loan will absorb the entire $750,000 TCJA limit.

Under the previous law, the child tax credit was $1,000 per qualifying child, but it was reduced for married couples filing jointly by $50 for every $1,000 their Adjusted Gross Income (AGI) exceeds $110,000. Starting in 2018, the child tax credit doubles to $2,000 per qualifying child under age 17. There is a new $500 credit, per dependent, for any of your dependents who aren’t qualifying children under 17. There is no age limit for the $500 credit, but the tax tests for dependency must be met. The “phase-out” thresholds are also increased for the credit. Starting in 2018, the total credit amount allowed for a married couple filing jointly is reduced by $50 for every $1,000 their AGI exceeds $400,000. The threshold is $200,000 for all other taxpayers. There is a good possibility you may be eligible for this credit now.

在我們之前的文章中，已經標明了2017年底所通過的新減稅及就業稅法(以下簡稱新稅法) 的重大改變。以下是今年需要注意的一些事項。

在新稅法之下，2018年的普通收入稅率為10%，12%，22%，24%，32%，35%，37%。當聯合申報人的上稅收入超過$600,000，將會承受最高的稅率。 (2017年則是超過$470,700。)

2018年，聯合申報人可以享受$24,000的標準扣減額(2017年為$12,700)。一家之主可以享受$18,000的標準扣減額，單身(包括已婚納稅人卻選擇與配偶分開申報)則可以使用$12,000的標準扣減額。但是，新稅法停止了個人免稅額的使用。

新稅法推出之前，納稅人可以抵扣房屋購置貸款(用於購買或大幅改善第一個或第二個房屋)額度高達$1,000,000的利息(已婚納稅人單獨申報者則為$500,000)。此外，納稅人可以抵扣高達$100,000的房屋淨值債務的利息(已婚納稅人單獨申報者則為$50,000)，無論是如何使用的。 從2018年至2025年，新稅法將房屋購置貸款額度限制降低到$750,000。對於已婚納稅人分開申報者，限制減半為$375,000。此外，新稅法一般而言不允許抵扣房屋淨值貸款利息。然而，國稅局近期建議屋主們可以抵扣用於支付房屋淨值貸款以及信用額度的利息，如果這些資金是用於購買，建造，或者是大幅改善納稅人的房屋。換句話說，這些貸款將視為房屋購置貸款，並將受到新稅法$750,000/$375,000的限制。 由於有一套“祖父级貸款”規定，新的限制不適用於12/15/17之前的住房購置債務(包括在12/15/17當天以及之前進行房屋貸款或重新借貸)。對於已有的房主來說，這無疑是個好消息。 此外，對已購買的房屋進行重新貸款融資可能是有益的。例如，你可以重新申请为只付利息的一百万房贷，如此你仍然可以抵扣全部利息。相反，如果你對新稅法之前購買的房屋貸款本金一百萬進行逐步償還，你將無法將2018至2025年的額外房屋貸款的任何部分視為房屋購置債務，因為你的現有貸款將承受$750,000美元的新稅法限制。

根據之前的税法，兒童稅收抵免額度是每名達標兒童$1,000，但是對於調整後總收入超過$110,000的聯合報稅夫妻，每超過$1,000，將減少$50。從2018年開始，每位17歲以下符合规定兒童的兒童稅收抵免額翻倍至$2,000。對於在17歲以上未符合儿童抵免规定的受撫養人，每一名只有$500的稅收抵免。新$500抵稅項目，沒有年齡限制，但受撫養人必須符合抚养的规定。 新稅收抵免的“逐步淘汰”門檻也提高了。從2018年開始，對於調整後總收入超過$400,000的聯合申報的夫妻，每超過$1,000，將會減少$50的抵稅額度。所有其他類型納稅人的“逐步淘汰”門檻為$200,000。現在你將很有可能獲得這個抵稅福利。