SALT LAKE CITY, Utah (News4Utah) – What does the tax reform bill, expected to pass and get signed into law this week by President Trump, mean for you?
Most Americans will see an immediate tax cut in 2018.
Tax rates for corporations will be permanently cut.
Private businesses will get new breaks, too.
The $1.5 trillion dollar tax bill will likely benefit individuals, according to Scott Farnes, a partner with FJ & Associates, a certified public accounting firm.
“Most of the cases, it will be to their benefit,” said Farnes.
The bill will benefit most individuals and families, he says, but not drastically.
“Beginning of 2018 will see a small increase in their paychecks,” said Farnes.
But just how it will impact you and your family depends on the circumstances.
“The standard deduction has increased for married, going from $12,000 to $24,000, for a standard deduction. If you have a standard deduction, that’s great. But if you have contributions, and mortgages, you have to play with that a little bit,” said Farnes.
The child tax credit will also double to $2,000 for children under the age of 17.
This tax bill also exempts almost everyone from the estate tax — currently only .2 % of the American population would have to pay an estate tax.
Here are some resources to figure out how the tax plan might impact you:
Tax Plan Calculator — http://taxplancalculator.com/
Washington Post Tax Calculator– https://www.washingtonpost.com/graphics/2017/business/tax-bill-calculator/?utm_term=.8459d9f9958c
CNN Tax Calculator — http://www.cnn.com/2017/12/13/politics/calculate-americans-taxes-senate-reform-bill/index.html