Trump Tax Reform Calculator
The Trump tax reform proposal as proposed by the GOP House Ways and Means Committee on November 2, 2017. These changes are proposed for the 2018 tax year.
How Will the GOP Tax Bill Impact Me
Although there is much more detail yet to be released, some of the highlights of the Trump tax proposal are as follows. Reduce the number of 2018 tax brackets from seven down to four; namely 12%, 25%, 35%, and 39.6%. Small business owners who are setup as S-Corporations or Limited Liability companies and receive pass-through income via a K-1 or form 1065, will see their top rate reduced from a high of 39.6% down to 25% on earnings distributions. Other features will be to double the standard deduction to $12,200 for single filers and $24,400 for married filing jointly, eliminate the marriage penalty, and the Alternative Minimum Tax (AMT). The child tax credit is to increase from $1,000 to $1,600 per child although personal exemptions will disappear. A new family tax credit of $300/individual will be introduced to cover you and your spouse, children over 17 whom you’re supporting, and for ailing elderly mother or an adult child with a disability. For those who itemize, the state and local property tax deductions will be limited to $10,000. You can read more about just how much this will affect your tax liability.
Use this tax calculator tool to help estimate your potential 2018 tax liability under the new plan. Once you run this calculator then you can run the current 2017 tax calculator to see if you will be paying more or less under the new plan. We will continually refine the calculator as more information becomes available.