What the GOP tax plan means for you

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Flanked by Speaker of the House Paul Ryan and House Ways and Means Committee chairman Rep. Kevin Brady (R-TX), President Donald Trump speaks about tax reform legislation in the Cabinet Room at the White House, November 2, 2017 in Washington, DC.

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Flanked by Speaker of the House Paul Ryan and House Ways and Means Committee chairman Rep. Kevin Brady (R-TX), President Donald Trump speaks about tax reform laws within the Cabinet Room on the White House, November 2, 2017 in Washington, DC.

Under the present system, a single filer can take a regular deduction of $6,350 and a private exemption of $four,050. That equates to $10,400 in tax financial savings in contrast with the proposed $12,000 normal deduction for singles.

Further, the brand new framework is probably not useful to households because it does away with the dependent exemption, which supplies $four,050 for every qualifying dependent.

“Dependents are the major thrust,” stated Veliotis. “If you take away the dependent exemption for my five kids, that’s $20,000, and the enhanced standard deduction won’t do it for me.”

Republicans have proposed to lift the kid tax credit score to $1,600 from $1,000. They are additionally calling for a brand new $300 credit score for every guardian and non-child dependent, however this tax break will expire by the tip of 2022.

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