April 17th marks the last time that taxpayers will ever have to deal with the old, broken tax code.
As we bid farewell to the old tax code, here are the top five ways our new tax code, under the Tax Cuts and Jobs Act, will benefit workers and families nationwide:
With lower tax rates, Americans in every community will be able to keep more of their hard-earned money to save or spend as they see fit. In fact, a typical family of four earning $75,000 will see a tax cut of more than $2,000.
2. Nearly Doubled Standard Deduction
The new code will increase the standard deduction to $12,000 for individuals and $24,000 for married couples – nearly doubling the amount available under the old tax code. This will protect more income from taxes.
3. Doubling The Child Tax Credit to Help Families
The new code doubles the Child Tax Credit from $1,000 to $2,000 and makes it available to more families across the country dealing with the costs of raising a family. In addition, it preserves the Child and Dependent Care Tax Credit and Adoption Tax Credit. The new tax law 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.
4. A Simpler Process
Next April will bring a lot of relief to the yearly hassle of filing taxes. The new law is designed to enable Americans to file their taxes in a simple and straightforward way. The IRS has also released a 2018 withholding calculator to help families determine the appropriate withholding amount for their circumstances.
5. Relief from Obamacare
The Tax Cuts and Jobs Act repeals Obamacare’s unpopular and ineffective individual mandate. By eliminating this unfair tax, Americans will no longer be forced to buy government-mandated health insurance they don’t want, don’t need, and often can’t afford to use. Families will now have the freedom to buy the health care plan that’s right for them.
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