Tax Cuts and Jobs Act (TCJA) 2017 and My Calculations
Regarding the Tax Cuts and Jobs Act (TCJA) of 2017, I decided to finally conduct some research.
High level overview including marginal rate tables:
https://www.irs.com/articles/2018-fed...
Discussion of the savings in light of the more simplified 1040 (forms) and fewer individuals that will be hit with the AMT (Alternative Minimum Tax):
https://taxfoundation.org/the-tax-cut...
The official government HR document (1100+ pages):
https://docs.house.gov/billsthisweek/...
Long Story Short -- I filled out the year 2018 form 1040 (presently in draft format) and compared my taxes to last year.
- I took the new standard deduction ($12,000) instead of itemizing and did not need to fill out the AMT.
- Total paperwork processing time was less than an hour (compared to 3+ hours in the past).
- Fed taxes confiscated dropped by $2,500 compared to last year (even though I am earning 3% more than last year).
In summary -- the TCJA offers a substantial benefit and is going in the right direction.
High level overview including marginal rate tables:
https://www.irs.com/articles/2018-fed...
Discussion of the savings in light of the more simplified 1040 (forms) and fewer individuals that will be hit with the AMT (Alternative Minimum Tax):
https://taxfoundation.org/the-tax-cut...
The official government HR document (1100+ pages):
https://docs.house.gov/billsthisweek/...
Long Story Short -- I filled out the year 2018 form 1040 (presently in draft format) and compared my taxes to last year.
- I took the new standard deduction ($12,000) instead of itemizing and did not need to fill out the AMT.
- Total paperwork processing time was less than an hour (compared to 3+ hours in the past).
- Fed taxes confiscated dropped by $2,500 compared to last year (even though I am earning 3% more than last year).
In summary -- the TCJA offers a substantial benefit and is going in the right direction.
