Estate tax – The estate exemption doubles to $11.2 million per individual and $22.4 million per couple in 2018.
Child tax credit – The child tax credit has been raised to $2,000 per qualifying child, those who are under 17, up from $1,000. A $500 credit is available for dependents who do not get the $2,000 credit.
Mortgage interest – The deduction for interest is capped at $750,000 for mortgage loan balances taken out after Dec. 15 of last year. The limit is still $1 million for mortgages that were established prior to Dec. 15, 2017.
State and local taxes – The itemized deduction is limited to $10,000 for both income and property taxes paid during the year.
Contribution limits for retirement savings – Employees who participate in certain retirement plans ‒ 401(k), 403(b) and most 457 plans, and the Thrift Savings Plan – can now contribute as much as $18,500 this year, a $500 increase from the $18,000 limit for 2017.
Savings in IRAs – Savers who contribute to individual retirement accounts will have higher income ranges following cost-of-living adjustments. Note that the deduction phases out for individuals and their spouses who are covered by workplace retirement plans.
Singles – the limit is $63,000 to $73,00
Married couples – the phaseout range will vary depending on whether the IRA contributor is covered by a workplace retirement plan or not. When the spouse investing has access to an employer plan, the range is $101,000 to $121,000. For individuals who don’t have a retirement plan, but are married to someone who does, the phaseout has been raised to $189,000 to $199,000.
Married taxpayers filing a Separate return – the phaseout was not adjusted for those who are covered by a workplace retirement plan. That range is $0 to $10,000.
Contributions to Roth IRAs – For individuals who are single or the heads of their households, the income phaseout has been raised to $120,000 to $135,000. For married couples who file jointly, the range climbs to $189,000 to $199,000. The phaseout was not adjusted for married individuals who file a separate return. That is $0 to $10,000.