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1. I heard that the new tax law for 2018 eliminated the

personal exemption which was $4050...
1. I heard that the new tax law for 2018 eliminated the personal exemption which was $4050 for 2017. If this is the case should I just claim "0" on the allowances on my w-4 since we can no longer claim exemptions?2. Additionally, since the new standard deduction is 12k for single filers, how would i calculate an allowance to break even at tax time if adjusting your allowances no longer makes sense since personal exemptions are gone?
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Answered in 12 minutes by:
3/26/2018
Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 33,140
Experience: Personal Investment, Tax Preparation
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Yes - personal exemptions are eliminated,

however de-facto personal exemptions of taxpayers are combined with standard deduction,

but personal exemptions for dependents de-facto transferred to additional credits.

It is not clear how allowances on W4 will reflect these changes.

Until additional clarifications form the IRS - I suggest NOT to change W4 form.

Withholding tables are already updated - so basically nothing should be changed on W4 form.

If you reduce the number of allowances to zero - that will result larger withholding.

.

If you are single and will use standard deduction - you will need to prepare your W2 form as Single with TWO allowances.

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Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 33,140
Experience: Personal Investment, Tax Preparation
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Customer reply replied 3 months ago
ok, so then i guess what im getting at is will there be a $4050 on line 42 of my tax form 1040 because i claim myself for 2018?

That line will be eliminated on 2018 tax form - but that form and instructions are not yet approved.

Instead of standard deduction $6350 and personal exemption $4050 - total $10400 that we have in 2017 - we will have $12,000 standard deduction on 2018 form.

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Customer reply replied 3 months ago
Ok, I got it. Thanks
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