Contrary to the media's detailed charts, tables, etc. portraying that most American will get a tax cut, here is what I find that many families are facing a tax increase, substantially. If your are in 20% or 25% brackets, with kids older than 17 years old but still your dependents (so the increase of child tax credit and phase-out limit don't apply), and your itemize beyond $24000, your tax will increase big time. Why?
1. Child tax credit increase not for you;
2. SALT (state and local tax) deduction limited to 10K;
3. Nasty repeal of personal exemptions (4050 per person), for a family of 5, that's $20,250
So your taxable income is going to increase by the amount in 3) and the amount that you can not deduce in 2), the 3% lower tax rate only dent that little bit. In my scenario, my tax will increase by more than $2500.
For families with income earners in their 50's, with > 17yo kids, and pay higher SALT. There are many.
1. Child tax credit increase not for you;
2. SALT (state and local tax) deduction limited to 10K;
3. Nasty repeal of personal exemptions (4050 per person), for a family of 5, that's $20,250
So your taxable income is going to increase by the amount in 3) and the amount that you can not deduce in 2), the 3% lower tax rate only dent that little bit. In my scenario, my tax will increase by more than $2500.
For families with income earners in their 50's, with > 17yo kids, and pay higher SALT. There are many.