Updated: Dec 28, 2019
Okay, it's here. (Well, I found what I was looking for.) A summary of the tax law changes for 2018. There are a few that stand out to me that particularly affect homeowners in California. All these points come from this CNN Money link here: http://money.cnn.com/2017/12/20/news/economy/republican-tax-reform-everything-you-need-to-know/index.html 5. The standard deduction has essentially been doubled.
Republicans want fewer people to itemize their taxes. To achieve this, they've nearly doubled the standard deduction. For single filers, the standard deduction has increased from $6,350 to $12,000; for married couples filing jointly, it's increased from $12,700 to $24,000.
And that's because...
6. The personal exemption is gone.
Previously, you could claim a $4,050 personal exemption for yourself, your spouse and each of your dependents, which lowered your taxable income. No longer. For some families, the elimination of the personal exemption will reduce or negate the tax relief they get from other parts of the reform package.
I consider it a "wash".
7. The state and local tax deduction now has a cap.
The state and local tax deduction, or SALT, remains in place for those who itemize their taxes -- but now there's a $10,000 cap. Previously, filers could deduct an unlimited amount for state and local property taxes, plus income or sales taxes.