Tax Brackets For Married Couples

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Tax Brackets For Married Couples

Here is an overview of tax brackets for married couples.

 

More details of the fiscal plan have leaked, and the new tax parentheses look enticing on an individual level, even with the marriage penalty on the SALT deduction, the actual brackets are promising in removing the marriage penalty for everybody except people who make over $600k as married filers.

As you can tell in the old against new brackets, federal tax rates will go down for everyone.

People who make over $480k will experience the greatest cuts.

Anyone making under $19k will pay the same amount.

Everybody else will pay less.

Generally, the estimate is that a couple making $350, 000 will pay $30k less in taxes.

But, of course thats not the complete story and the savings disappear with various complications in terms how deductions work with the new plan.

In addition, the standard deduction will double.

Rather than $13k deduction per person, it’ll be $24k for a couple. Not quite double. BUT it removes the Personal Exemption, which is $4050 per person in 2018.

Personal exemptions are separated from the standard deduction in the plan today.

This may hurt people with kids the most.

For a married family with one kid, they miss out on $12, 150 of federal tax exemptions.

Suddenly, the doubling of the standard deduction does not look that great.

Regarding the tax brackets for married couplesf, or single people or married with no children, the new plan is a better deal as doubling the standard deduction is worth a lot more than the personal exemption.

Current tax plan allows for a one thousand dollars per kid tax credit in 2018, but only if you make less than $110, 000 as a couple (or $75k as a single person.

While  individuals who make $250k a year as married people with children have different challenges than people who make, say, $50k as a couple, or $20k as a single mother this does not mean that individuals making $250k, jointly, are rich because of high expense of living areas.

This article is an overview of tax brackets for married couples, speak to a tax professional detail for help with your personal tax situation.

 

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