How the Tax Cuts and Jobs Act Could Affect These 5 Households
Congressional GOP leaders have revealed the final version of the Tax Cuts and Jobs Act, and it's set to be voted on. If the bill is signed into law, which looks quite likely, it could have a significant impact on your federal income tax bill in 2018 and beyond. To give you a sense of how your taxes could be affected, here are five situations and how the new tax bill could affect each one.
First, let's look at a simple tax situation. Under the current tax law, a single filer would be entitled to a $6,500 standard deduction in 2018 and a personal exemption of $4,150, which would leave this taxpayer with taxable income of $39,350. Plugging this in to the current-law 2018 tax brackets shows that this individual would pay $5,491 for the year.
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Source: Fool.com
