What you're really paying in taxes this year

What you’re really paying in taxes this year

Bottom Line: As you’re getting your taxes together to file this year here’s a little refresher on what changed for you in 2018. I first brought this to you in December of 2017:

  • There are seven tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37% (all but the 35% bracket being a reduction in tax rate) \
  • There is a near doubling of the standard deduction (Along with other changes in the plan the net effect is much simpler tax filing for most who itemized. 32% of Americans previously itemize. That will likely drop to only around 6%) 
  • End of the individual mandate / tax penalty for not having health insurance 
  • Taxes are deductible up to $10,000 (combination of state and local taxes) 
  • Raised the cap for the Estate tax to kick in to nearly $11 million
  • Eliminated personal exceptions but doubles of the child tax credit from $1,000 to $2,000  

Median income entered 2018 at $44,668. Using standard deductions...That person paid $5,319 in federal income tax previously. Under the new law the average person pays$3,539. This means that the average Floridian making the average full-time income conservatively saved around $1,780 in federal income taxes. If no adjustments were made to withholding, you’ll see that show up in a big way when you file.

1290 WJNO · The Palm Beaches' News Source

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