The bill extends the current individual tax rates through 2025, maintaining the seven-bracket structure with rates ranging from 10% to 37%.
The corporate tax rate remains at 21%, extending the reduced rate that was implemented under the original Tax Cuts and Jobs Act.
The increased standard deduction amounts are extended: $14,600 for single filers, $29,200 for married couples filing jointly, and $21,900 for heads of household.
The Child Tax Credit remains at $2,000 per qualifying child, with up to $1,600 being refundable. The credit begins to phase out at $200,000 for single filers and $400,000 for married couples.
The 20% deduction for qualified business income (QBI) from pass-through entities is extended, allowing business owners to deduct up to 20% of their qualified business income.
The $10,000 cap on state and local tax (SALT) deductions remains in place, limiting the deduction for state and local income, sales, and property taxes.
The bill extends various education-related tax benefits, including the American Opportunity Tax Credit and Lifetime Learning Credit, as well as student loan interest deductions.
Enhanced expensing provisions for business equipment and machinery are extended, allowing businesses to immediately deduct the full cost of qualifying property.
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