Tax Law Changes

Changes to the tax law in the bill just passed were minimal.  Some of the expiring tax cuts were extended for 2 more years.  Standard deduction amounts were increased by $200 for the married filing joint and $100 for every other filing status.  Personal exemptions were increased by $50.  For a married filing joint return with the standard deduction the changes reduce their taxes by $45.  Business mileage rates were reduced to 50 cents per mile.  Contributions to retirement plans and IRAs remain unchanged.  No increase to contributions for the past two years now.  Changes to the Hope and Lifetime Learning credits covered both increases in the credits and increased earnings before the phaseout starts.  AMT has another patch to increase the income level before the AMT kicks in.