An individual whose income exceeds a threshold amount (in 2019, $210,700 for single and head-of-household taxpayers; $421,400 for married taxpayers
filing jointly; and $210,725 for married taxpayers
filing separately) cannot take income from an SSTB into account in calculating the QBI deduction.
Different MAGI numbers apply to married taxpayers
filing joint returns, qualifying widows or widowers, and married taxpayers
filing separate returns.
Under the TCJA, taxpayers can deduct mortgage interest paid on acquisition indebtedness up to $750,000 ($375,000 for married taxpayers
filing a separate return).
Notably for local small businesses, the wage/basis limitations do not apply to individuals with taxable income less than $157,500 (single taxpayers) or $315,000 (married taxpayers
* $135,000 and $165,000 (for married taxpayers
The deduction for acquisition indebtedness is limited to interest paid on the first $1 million of debt ($500,000 for a married taxpayer
filing a separate return) and the first $100,000 on home equity loans ($50,000 for a married taxpayer
filing a separate return).<br />Under the TCJA, a taxpayer may treat no more than $750,000 as acquisition indebtedness ($375,000 in the case of married taxpayers
filing separately) for tax years beginning in 2018 through 2025.<br />Transition relief.
The standard deduction that individual taxpayers are entitled to has nearly doubled from $6,350 to $12,000 for single taxpayers and from $12,700 to $24,000 for married taxpayers
Taxpayers with income greater than $500,000 and married taxpayers
filing jointly with income greater than $1 million would enter the 39.6 percent rate.
The framework document both proposes consolidating the current seven-bracket tax rate system into three brackets (12%, 25% and 35%) and nearly doubling the standard deduction to $24,000 for married taxpayers
filing jointly and $12,000 for single taxpayers.
For taxpayers with a tax base of $185,400 or less or for married taxpayers
filing separately with a tax base of $92,700, the calculation involves multiplying the AMT base by 26%.
Introduced July 9 by Senator Ron Wyden (D-Ore.) and cosponsored by the entire Senate Democratic Caucus including presidential candidate Bemie Sanders (I-Vt.), the Equal Dignity for Married Taxpayers
Act "sets new precedent by removing gender-specific references to marriage, enshrining dignity and recognition for LGBTQ Americans in the tax code," according to a Wyden press release.