New tax laws for 2018-how does an extra $2,000 sound?

Oh no. You’re gonna put me to sleep here.

How does an extra $2,000 sound?

What if I told you the standard deductions DOUBLE?! And, your tax bracket goes DOWN at the same time?!

What?!

Yes.

Here’s a simple example for a single filer making $50,000 gross/year:

Gross income$50,000

Old deduction:$6350

New dedcution: $12,000

Old tax bracket:15%

New tax bracket:12%

Let’s compare the 2 tax bills:

2017:

$50,000-6350=$43,650 is what you were taxed on at 15%=$6,548

2018

$50,000-12,000=$38,000 is what you will be taxed on at 12%

$4,560

$1,988

Who couldn’t use another $2,000?!

Keep in mind that if you itemize, you could save even more. This was a very simple 1040EZ type example.

Source:Kiplinger’s March 2018

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