skip to main content

H.R. 6760 (115th): Protecting Family and Small Business Tax Cuts Act of 2018

H.R. 6760 would make permanent the tax provisions for individuals and pass-through entities in the Tax Cuts and Jobs Act that otherwise be sunset after 2025, including:[1]

  • The lower rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
  • The doubling of the standard deduction to $12,000/$24,000, for single or joint filers, respectively.
  • The doubling of the Child Tax Credit to $2,000 with up to $1,400 refundable.
  • The retention of popular deductions like mortgage interest (capped at $750,000 for new homes), state and local taxes (SALT) (capped at $10,000), medical expenses, and charitable deductions.
  • The 20% tax deduction for small business owners.

The provision extends the reduction of the threshold above which unreimbursed medical expenses may be deducted, so that this reduction in the threshold from 10 percent to 7.5 percent of AGI applies to taxable years beginning after December 31, 2016 and ending before January 1, 2021.

Additional modifications made by this bill include:

  • Modifying the breakpoints between the zero and 15% rate on long-term capital gains and qualified dividends to ensure taxpayers cannot have long-term capital gains income taxed at a higher rate than ordinary income.
  • Modifying the tax filing requirement so that a married taxpayer does not need to file an income tax return if the combined gross income of the taxpayer is less than the applicable standard deduction.
  • Modifying Section 15 that provides a rule for the computation of tax in the event of a tax rate change for a taxable year beginning on a date other than the first date of a taxpayer’s taxable year to have the rule only apply to changes in corporate tax rates.
  • Technical and conforming changes related to rounding of income tax brackets, ITIN requirements for non-child dependents, gross income requirements for non-child dependents, increased limitations for certain charitable contributions, and limitations on deduction for state and local taxes.
Last updated Sep 25, 2018. Source: Republican Policy Committee

The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress, and was published on Sep 24, 2018.


Protecting Family and Small Business Tax Cuts Act of 2018

This bill amends the Internal Revenue Code to make permanent several tax provisions that were enacted in 2017 and are scheduled to expire at the end of 2025.

The bill makes permanent provisions that:

reduce individual tax rates, modify the taxation of the unearned income of children, allow a deduction for qualified business income of pass-through entities, increase the standard deduction, increase and modify the child tax credit, increase the limitation for certain charitable contributions, allow additional contributions to ABLE accounts (tax-favored accounts designed to enable individuals with disabilities to save for and pay for disability-related expenses), allow certain members of the Armed Forces in the Sinai Peninsula of Egypt to receive combat zone tax benefits, exclude from gross income discharges of student loan debt due to the death or disability of the student, repeal the deduction for personal exemptions, limit individual deductions for state and local taxes, limit the mortgage interest deduction, double the estate and gift tax exemption amount, increase the alternative minimum tax exemption amount for individuals, and repeal or limit several other deductions and exclusions. The bill also:

extends through 2020 the reduction in the adjusted gross income threshold for the medical expense deduction, modifies the capital gains tax brackets, and modifies tax filing requirements for married taxpayers.