The Tax Cuts and Jobs Act law will take effect beginning with the 2018 tax year. This tax overhaul lets some individuals take home more in 2018 when filing their taxes. In some cases though, cuts to deductions and caps on itemized deductions will reduce tax returns. Understanding how this law will affect filing in 2018 can help you maximize deductions and ensure you have ready the necessary information.
For 2018, the seven tax brackets are: 10%, 12%, 22%, 24%, 32%, 35%, 37%. Maximum income thresholds have also changed for individuals and joint filers. As a result, employees may notice increases in take-home pay. People of all salary levels will pay less income tax in 2018. However, individuals who fall near the middle of the tax charts will see the biggest breaks.
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