Tax Reform is Helping Workers, Middle Class Families—How Much Will You Save?

Recently, the Tax Foundation—a non-partisan tax policy non-profit—announced the release of a “tax calculator” to help people figure out how much the Tax Cuts and Jobs Act (TCJA), which was passed and signed into law last December, will “affect taxpayers in scenarios similar to their own.”

This is a fantastic tool—and an even better idea. Why? Because, as the Tax Foundation accurately notes, with the passage of the TCJA, “many Americans are wondering what will actually happen to their tax liabilities when they file their 2018 taxes early in 2019.”

Click here to learn more about the calculator and here to see what the impact would be for sample taxpayers.

Here are some examples:

  • “James” is single, has no children, and earns $30,000 a year. He also takes the standard deduction. Under previous law, James paid $4,331 in taxes, but under the TCJA, he’ll pay $3,953—a 1.26% cut with tax savings of $379.
  • “Jason” is single, has two children, lives in a single-earner family, and makes $52,000 a year. He also takes the standard deduction. Under previous law, Jason paid $5,198 in taxes, but under the TCJA, he’ll pay $3,306—a 3.64% cut with tax savings of $1,892.
  • “Amber” is single, has no children, lives in a single-earner family, and makes $75,000 a year. She also takes the standard deduction. Under previous law, Amber paid $16,104 in taxes, but under the TCJA, she’ll pay $14,327—a 2.37% cut with tax savings of $1,892.
  • “Kavya and Nick” are married, have two children, live in a single-earner family, and make $85,000 a year. They also take the standard deduction. Under previous law, Kavya and Nick paid $11,035 in taxes, but under the TCJA, they’ll pay $8,782—a 2.65% cut with tax savings of $2,254.
  • “Sophie and Chad” are married, have two children, live in a double-earner family, and makes $85,000 a year. They itemize their deductions. Under previous law, Sophie and Chad paid $29, 345 in taxes, but under the TCJA, they’ll pay $27,122—a 1.35% cut with tax savings of $2,224.

Want to know how much you’ll save?

For more information—and to create a custom tax scenario for you or your family—take a look at the Tax Foundation’s main tax calculator page.