Doing Your Taxes 2018
Tax Cuts and Jobs Act of 2017, or the TCJA will reduce most people’s taxes and simplify the filing process. This article provide a summary of the changes.
- Dec. 2018
The main changes for individual filings are the standard deduction amounts. To simplify most people’s tax filings, the government decided to double the standard deductions for everyone. This will accomplish three goals. First, it will save most people some money. Depending on your tax bracket, you can expect to see $1500-2500 savings in overall taxes. Second, it will make it more fair such that people who rent instead of owning their own houses, will have some deductions added. Third, it will simplify the tax forms. Most people will no longer need to itemize their deductions.
This is huge. It means, most people, can file using the short form. It will save on tax preparation charges.
The standard deduction nearly doubles, from $12,700 to $24,000 for married couples. For single filers, the standard deduction will increase from $6,350 to $12,000. About 70% of families choose the standard deduction rather than itemized deductions; this could rise to over 84% if doubled. The personal exemption is eliminated—this was a deduction of $4,050 per taxpayer and dependent, unless it is in an estate or trust.
Winners and Losers
- The American people
- Small businesses
- Tax Accountants
- H&R Block
- Washington Bureaucrats
Donation To Charities
It is imperative that each person continue to donate to their favorite charities. Just because you no longer need to itemize, you should still donate. Those funds will help many people in need.
How Much Does the IRS Take In?
Our National Debt 2008-2018 as % Of GDP
The tax reform bill was long over due. It took 30 years since the last major reform. Our tax system is complex, antiquated, unfair and full of loop holes.
We needed a simplified tax system that is fair and easy to file. Thanks to President Trump and the GOP fulfilling one of his campaign promises, we have a new tax reform bill.
A Non Scientific Poll
How much tax savings did you realized in 2018?
Some Related Info
- Trump Tax Reform Calculator | Calculators by CalcXML
See how your taxes will be affected by President Trump's tax reform proposals of April 2017
- Full Details and Analysis: Tax Cuts and Jobs Act - Tax Foundation
The Taxes and Growth Model shows that the Tax Cuts and Jobs Act would boost GDP by 1.7 percent over 10 years and cost $448 billion on a dynamic basis.
- Tax Cuts and Jobs Act of 2017 - Wikipedia
© 2018 Jack Lee