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For tax years beginning after December 31, 2017 the taxable income of a child attributable to net unearned income (the “Kiddie Tax”) will be taxed according to the brackets applicable to trusts and estates.

Beginning in 2018 (and continuing until 2026), Trusts and Estates will be subject to four tax brackets (10%, 24%, 35% and 37%) with the highest bracket applying to taxable income in excess of $12,500.

No longer is the tax status of the child’s parent(s) applicable in determining the tax on net unearned income of the child.

The earned income of the child will continue to be taxed as regular ordinary income rates applicable to a single individual.

Long-Term Capital Gains (and Qualified Dividends) have been subject to special maximum tax rates. The Act generally retains the maximum tax rate structure.
For 2018 the 15% rate applies once the following income limits are met: a. Joint returns - $77,200
b. Head of Household returns - $51,700
c. Single returns - $38,600
d. Married Separate returns - $38,600
e. Trusts and Estates - $2,600

For 2018 the 20% rate will apply to long-term capital gains and qualified dividends above these income levels:
a. Joint returns - $479,000
b. Head of Household returns - $452,400
d. Married Separate returns - $239,500
e. Trusts and Estates - $12,700

Prior to the Act, a 0% capital gain rate applied to capital gains where the taxpayer is paying in the 10% or 15% rate on ordinary income; a 15% capital gain rate applied to any taxpayer paying any other rate below 39.6%; and a 20% rate applied to the high-income taxpayers paying 39.6% on ordinary income.

Two significant changes were made to the AMT for the years 2018 through 2025. All of the changes will be subject to inflation adjustment in years after 2018.

a. The exemption amounts that were scheduled to be $86,200 for joint filers (one-half of that amount for separate filers) and $55,400 for unmarried taxpayers, for 2018, have been increased to $109,400 for joint filers ($54,700 for separate filers) and $70,300 for all others.

b. The AMTI threshold, above which the exemption is phased out $1 for every $4 of excess, has been increased to $1,000,000 for married taxpayers filing jointly and $500,000 for all others. These amounts were scheduled to be $164,100 for joint filers, $82,050 for separate filers and $123,100 for all other taxpayers.

Effective for tax years 2018 through 2025, the deduction for moving expenses is suspended.

The deduction will still be available for active duty members of the Armed Forces who move pursuant to a military order and incident to a permanent change of station.

The $250 (as adjusted for inflation) deduction for eligible educators remains at that level.

Beginning on January 1, 2017, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be 53.5 cents per mile for business miles driven, 17 cents per mile driven for medical or moving purposes, 14 cents per mile driven in service of charitable organizations. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.

In 2015, the standard mileage rates for the use of a car, van, pickup or panel truck is 57.5 cents per mile for business use, 23 cents a mile for medical or moving purposes and 14 cents per mile driven in service of charitable organizations.

The maximum amount of wages in 2017 subject to the 6.2% Social Security tax will rise from $118,500 to $127,200, an increase of more than 7%.
There is no limit on the amount of wages subject to the medicare tax at a rate of 1.45%

The maximum amount of Social Security tax a taxpayer will pay increased from $7,347 in 2016 to $7,883.40 in 2017, an increase of $539.40.

The SSA announced that Social Security beneficiaries will get a 0.3% increase in benefits in 2017 after getting no increase in 2016. The average retiree will receive an increase of $5 a month.