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Here’s a breakdown of how the new House tax bill impacts your taxes

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Here’s a breakdown of how the new House tax bill impacts your taxes

Treasury Secretary Steve Mnuchin listens as U.S. President Donald Trump hosts a tax reform industry meeting at the White House in Washington, U.S., October 31, 2017.

House Republicans on Thursday unveiled the Tax Cuts and Jobs Act, new legislation that would cut corporate taxes and repeal taxes paid by large estates. Though the bill now has a long journey into becoming law, here are the highlights on the impact on individual taxes.

Also read: Here’s a breakdown of how the new House tax bill impacts business taxes

• There will be four tax rates: 12%, 25%, 35% and 39.6%. For single people, the brackets will be up to $45,000, up to $200,000, up to $500,000 and over $500,000, and for married people, those brackets will be up to $90,000, up to $260,000, up to $1 million and over $1 million.

The standard deduction would be hiked from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples. But there will be no personal exemptions.

• The child tax credit will be hiked to $1,600 from $1,000 per child, and there will be a credit of $300 for each parent to help with expenses.

• The mortgage interest deduction will be preserved for existing mortgages but capped at $500,000 for newly purchased homes.

• State and local income taxes will not be able to be deducted, but state and local property taxes will be, up to $10,000.

• Despite intense debate, there doesn’t appear to be any change to 401(k) and Individual Retirement Accounts.

• The alternative minimum tax is repealed.

• The estate tax exemption will be doubled from $5 million to $10 million and in six years, will be repealed.

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• The deduction for interest on education loans and the deduction for qualified tuition and related expenses would be repealed.

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