The Tax Cuts and Jobs Act is the most comprehensive tax legislation passed in more than 30 years. This historic legislation delivers relief to American Families through tax cuts and vital reforms that will create jobs and help lower- and middle-income workers get ahead.
The TCJA Cuts Taxes For A Typical Family of Four Earning $73,000 Annually by Over $2,000 In 2018.
- According to the CEA, comprehensive tax reform is set to increase the average household income by an estimated $4,000.
- The TCJA nearly doubled the Standard Deduction to $12,000 (single), $18,000 (heads of household) and $24,000 (married families).
- Many more families will not have to itemize deductions because the larger Standard Deduction will exceed their itemized deductions.
The Child Tax Credit Has Been Increased And Enhanced.
- The tax credit has been doubled to $2,000 per child under age 17.
- A new $500 tax credit has been created for dependents age 17 or older.
- The full Child Tax Credit is now available to families with incomes of up to $200,000 (single) and $400,000 (married).
- The refundable portion of the credit has been increased from $1,000 to $1,400 (adjusted annually for inflation).
- This helps lower- and middle-income families who do not have enough income tax liability to offset the full amount of the credit.
The TCJA Retains Many Important, Family-Centric Tax Benefits, Including:
- The mortgage interest deduction is being retained for newly-purchased homes of up to $750,000, while remaining fully intact for existing homes.
- The Earned Income Tax Credit for low-income workers and families.
- The charitable giving deduction.
- Child and Dependent Care tax credit.
- Retirement savings tax benefits.
- Adoption expense tax credit.
- The State and Local Tax deduction (up to $10,000).
American Families Are Furthered Empowered To Send Their Children To The School Of Their Choice.
- Parents can now make up to $10,000 of distributions annually (per student) from a 529 savings account to pay for tuition and other educational expenses at public, private, or religious pre-college institutions as well as colleges and universities.
Utility Companies Are Passing Their Savings Along To Customers Via Lower Electric Bills, Lower Gas Bills And Lower Water Bills For Americans.
- Over 100 utility companies have pledged to pass billions in tax savings to over 22 million of their customers.
Tax reform is putting money back in the pockets of working families, and giving parents the flexibility to make the best financial choices regarding their families’ care.