Still thinking of what to get your sweetheart this Valentine’s Day? The good news is, with the Tax Cuts and Jobs Act, millions of Americans across the country have more money in their pockets – just in time for the big day.
Whether it’s buying a gift for your significant other, getting ready to start a family, or building your life with your loved one, here is how the new tax law helps couples everywhere:
Real Relief for Married Couples
The Tax Cuts and Jobs Act eliminates or significantly reduces the burdensome “marriage penalty.” This means the vast majority of married couples filing jointly will not face higher income taxes as a couple than they would otherwise pay as individual filers. This saves money and provides simplicity and peace of mind for married couples throughout the year.
Keeping More of Your Income
You and your loved one work hard, and that work should be rewarded. With a nearly doubled standard deduction and lower tax rates at every income level, individuals and married couples can keep more of their hard-earned money and take home a bigger paycheck. In fact, a typical family of four earning the median income of $73,000 will see a total tax cut of $2,059. And for a newlywed couple earning $61,000 or less, they won’t pay a penny in federal income tax.
Planning for the Future and Growing Your Family
Whether you are looking to start a family or already have children, the Tax Cuts and Jobs Act offers financial relief as you raise your kids. The new tax code doubles the Child Tax Credit from $1,000 to $2,000 per child and preserves the Child and Dependent Care Tax Credit and Adoption Tax Credit.
It also improves saving options for education by allowing families to use 529 accounts to save for elementary, secondary, and higher education – whether it’s college or a vocational school.
This Valentine’s Day, the Tax Cuts and Jobs Act offers you and your loved one the chance to spend your hard-earned money on what’s important to the two of you. And if you haven’t caught the love bug yet, that’s okay, too! There are still lots of reasons to celebrate this new tax code today.
CLICK HERE to learn more about the Tax Cuts and Jobs Act.