A $1 million-plus wage earner came to her tax preparer last weekend to see what the Trump tax cuts, which went into effect for the 2018 tax year, would mean for her tax return due April 15. Last year, she deducted $245,500 in real estate taxes, state income taxes and personal property taxes. Granted, her tax rate went down from the top 39.6% rate in 2017 to the new, lower top 37% rate, which kicks in at $600,001 for joint filers or $500,001 for individual taxpayers. “There’s no one profile of who gets hit,” Hill says. “They came out ahead.”Adding to the confusion for many taxpayers is that many states' income tax systems go by a whole different set of rules than the federal government’s regime.

Source: Forbes February 08, 2019 15:09 UTC