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No personal exemptions or deductions for state and property taxes. We have no mortgage.
ALL income will be taxed at the same rate, no marginal tax bracket.
We will be paying 6000 more in taxes.
Edit to add that's on 220k gross. Probably unique in that my itemized deductions will still stand, my property taxes are just under the 10k limit, no kids , mfj. So for me the downsides are the loss of the personal exemptions and sales tax deductions but with improved income brackets
Looks like a tax increase of $1,800 for me. With the SALT deduction gone, it won't make sense to itemize my mortgage interest and property taxes, as combined they won't clear the standard deduction. Loss of the personal exemptions hurt. Changes to the marginal rates and expanding the child and adding the family tax credits helped some, but still an increase in taxes.
I think I dodged a few bullets assuming things stay as they are. The planned removal of the HOH status went away, as did the rumored 401K changes. The repeal of the alimony deduction would totally screw me but it looks like that does not effect existing agreements so I might luck out there too. The double standard deduction, less the loss of exemptions, gives me a slightly higher taxable income but the shift in the 25% bracket makes up for that.
Back of the napkin, I come out about 2K better off, but that's not including any "family credits" as I haven't seen enough detail on them.
some very preliminary calculations show me that I come out ahead by $2,000 or so, even though I lose my SALT deduction I don't own a home and have no other itemized deductions, the doubling of the standard deduction makes up for it as well as the lowering of the tax brackets.
It looks like singles over $200k/yr income pay 35% but for married folks the 35% bracket starts at $1 million? That reeks of discrimination against single filers..
some very preliminary calculations show me that I come out ahead by $2,000 or so, even though I lose my SALT deduction I don't own a home and have no other itemized deductions, the doubling of the standard deduction makes up for it as well as the lowering of the tax brackets.
It looks like singles over $200k/yr income pay 35% but for married folks the 35% bracket starts at $1 million? That reeks of discrimination against single filers..
35% bracket kicks in at $260k for married. 39.6% kicks in at $1 million.
No personal exemptions or deductions for state and property taxes. We have no mortgage.
ALL income will be taxed at the same rate, no marginal tax bracket.
We will be paying 6000 more in taxes.
I think you have a couple misunderstandings here. The prop tax deduction remains but capped at10k. Also I believe the tax brackets work as before with marginal rates.
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