Question

1. Compare and contrast (old tax law vs. new tax law) the individual mandate penalty. In other words, what was it in 2017? What is it for 2019? 2. What was the standard deduction in 2017? What is it for 2019? 3. What individual deductions are no longer allowed for 2019? What individual deductions are allowed in 2019? 4. What personal exemptions are allowed in 2019 as compared to 2017?

Answer 1

SOLUTION:

Fee amounts for 2017 (you'll file taxes in April 2018)

Per person method Income percentage method Maximum amount $695 per adult $347.50 per child under 18 2.5% of yearly household income If per person method is higher: 2.5% of yearly household incomeIf income percentage method is higher: Total yearly premium for the national average price of a Bronze plan sold through the Marketplace

Fee amounts for 2019 and beyond (you'll file taxes in April 2020 and beyond)
Per person method	Income percentage method	Maximum amount
The Shared Responsibility Payment no longer applies	The Shared Responsibility Payment no longer applies	The Shared Responsibility Payment no longer applies

In 2017, the standard deductions were as follows:

For 2017, the additional standard deduction amount for the aged or the blind is $1,250. The additional standard deduction amount is increased to $1,550 if the individual is also unmarried and not a surviving spouse.

For 2017, the standard deduction for a taxpayer who can be claimed as a dependent by another taxpayer cannot exceed the greater of (a) $1,050 or (b) $350 + the dependent's earned income.

For those taxpayers who itemize their deductions, the Pease limitations, named after former Rep. Don Pease (D-OH) may cap or phase out certain deductions for high-income taxpayers. The Pease thresholds for 2017 are:

If the Pease limitations apply, the total of all your itemized deductions is reduced by the lesser of:

• 3% of AGI above the applicable threshold; or
• 80% of the amount of itemized deductions otherwise allowable for the tax year.

Pease limitations apply to charitable donations, the home mortgage interest deduction, state and local tax deductions and miscellaneous itemized deductions. They do not apply to medical expenses, investment expenses, gambling losses, and certain theft and casualty losses.

For 2019,

Standard Deduction Amounts. The standard deduction amounts will increase to $12,200 for individuals, $18,350 for heads of household, and $24,400 for married couples filing jointly and surviving spouses.

• For 2019, the additional standard deduction amount for the aged or the blind is $1,300. The additional standard deduction amount increases to $1,650 for unmarried taxpayers.
• For 2019, the standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of $1,100 or the sum of $350 and the individual’s earned income (not to exceed the regular standard deduction amount).

There will be no personal exemption amount for 2019 as compared to $4,050 in 2017.. The personal exemption amount was set to zero (0) under the Tax Cuts and Jobs Act.