OBBBA changes to Tax Planner

Eric Updated by Eric

  • TCJA tax rates and brackets made permanent
  • Tips, overtime, and auto loan interest deductions added
  • Personal exemptions permanently eliminated
  • Increased AMT threshold amounts
  • Changes in casualty loss deduction
  • Unreimbursed educator expenses can be deducted as miscellaneous itemized deduction
  • $6,000 senior deduction through 2028.
    Until further IRS guidance is released, this is not yet reducing taxable income on the Social Security Benefits Worksheet.
  • Increased standard deduction
  • SALT increased to $40,000 through 2028, subject to high income limitation
  • Itemized deduction limitation for high earners
  • TCJA Child Tax Credit increase made permanent
  • QBI deduction made permanent
  • Some charitable contributions are allowed for non-itemizers; itemizers have 0.5% floor
  • Added worksheets for Taxable Income and Itemized Deduction Limitation
  • States with rolling conformity that start with taxable income instead of AGI updated
  • Excess unreimbursed educator expenses

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