40% tax on assets over Immediately doubles the Immediately doubles the $5.49 million per person basic exclusion and repeals basic exclusion; does not Estate Tax the tax after 2024 repeal the tax Two different education Expanded 529 plans to Expanded savings plan savings plans and seven include private and public to include private and other education incentives K12 expenses; consolidates public K12 expenses; Education other education incentives consolidates other into one expanded tax incentives into one credit expanded tax credit Second, parallel tax system Repeals both individual and Retains both AMTs; for certain business and corporate AMT raises individual Alternative Minimum Tax individuals exemption threshold Source: goo.gl/zyuRDz TAX BILL: MAJOR EDUCATION PROVISIONS Provision Current Law House Bill Senate Bill Income or sales and Repeals SALT deduction for Repeals SALT deduction property SALTs are fully income and sales tax for for income and sales tax deductible for itemizers individuals; caps property for individuals; caps State and Local Tax Deduction tax deduction at $10k; property tax deduction preserves full SALT for at $10k; preserves full corporations SALT for corporations $1,000 credit for each $1,600 credit; $300 credit $2,000 credit; $500 child; credit phased out at for each parent and credit for non-minor $110k (married) dependent; credit child dependents; Child Tax Credit phased out at $230k credits phased out at (married) $500k (married) Graduate students who Eliminated Unchanged work as research or teaching assistants are Tuition Waivers exempt from income tax on tuition waivers Allows taxpayers to deduct Eliminated Unchanged Student Loan Interest interest payments on Deduction student loans Allows taxpayers to claim Combines existing credits Unchanged credit for expenses related into one (American to post secondary Opportunity Tax Credit) Higher Education Tax Credits education
Estate Tax 40% tax on assets over $5.49 million per person Immediately doubles the basic exclusion and repeals the tax after 2024 Immediately doubles the basic exclusion; does not repeal the tax Education Two different education savings plans and seven other education incentives Expanded 529 plans to include private and public K12 expenses; consolidates other education incentives into one expanded tax credit Expanded savings plan to include private and public K12 expenses; consolidates other incentives into one expanded tax credit Alternative Minimum Tax Second, parallel tax system for certain business and individuals Repeals both individual and corporate AMT Retains both AMTs; raises individual exemption threshold Source: goo.gl/zyuRDz TAX BILL: MAJOR EDUCATION PROVISIONS Provision Current Law House Bill Senate Bill State and Local Tax Deduction Income or sales and property SALTs are fully deductible for itemizers Repeals SALT deduction for income and sales tax for individuals; caps property tax deduction at $10k; preserves full SALT for corporations Repeals SALT deduction for income and sales tax for individuals; caps property tax deduction at $10k; preserves full SALT for corporations Child Tax Credit $1,000 credit for each child; credit phased out at $110k (married) $1,600 credit; $300 credit for each parent and dependent; credit phased out at $230k (married) $2,000 credit; $500 credit for non-minor child dependents; credits phased out at $500k (married) Tuition Waivers Graduate students who work as research or teaching assistants are exempt from income tax on tuition waivers Eliminated Unchanged Student Loan Interest Deduction Allows taxpayers to deduct interest payments on student loans Eliminated Unchanged Higher Education Tax Credits Allows taxpayers to claim credit for expenses related to post secondary education Combines existing credits into one (American Opportunity Tax Credit) Unchanged