Trump Tax Reform Summary
Reductions will put more cash into most pockets
How will tax reform impact your household?
The new bill cuts tax rates across the board. For individuals the lower rates take effect next year and expire at the end of 2025. For corporations, the rate is permanently reduced from 35 percent to 21 percent. Both reductions will put more cash into most pockets with a $1.5 trillion increase to the federal deficit over the next decade (preliminary estimate).
Check out the table to see the estimated impact based on income for filers who do not itemize.
The only deductions lost are local and state taxes more than $10,000, tax preparation fees and deductions for moving expenses. The Child Tax Credit was doubled with limitations for the lowest income groups for how much they can be refunded and those with incomes exceeding $400,000. Those households that choose not to get health insurance will not face tax penalties.
Here's a handy tax calculator to get a more accurate estimate based on your household status.