The Tax Cuts and Jobs Bill Passes Senate Late Last Night….. Find Out What’s In It For You

Do to the procedural rules of the Senate, some minor changes were made. Therefore, the bill will need go back to the U.S. House of Representatives this morning for an additional vote.

The Senate’s passage of the Tax Cuts and Jobs Act, is the first comprehensive tax reform in more than three decades. This legislation will increase the child tax credit, reduce taxes for middle-income Americans, and double the standard deduction.

Do to the procedural rules of the Senate, some minor changes were made. Therefore, the bill will need go back to the U.S. House of Representatives this morning for an additional vote.

“American families need more take-home pay. They need the higher wages. They need greater job opportunities. And they need a competitive economy and the benefits that brings. American families should not have to settle for anything less, and we’ll make sure they don’t,” said U.S. Senator John Cornyn (R-TX).

Here’s What it Means For You

For a Typical Family of Four

• The typical family of four earning the median family income of $73,000 will receive a tax cut of $2,058, a reduction of nearly 58 percent.

For a Single Parent Earning $41,000 per Year

• A single parent with one child and an annual income of $41,000 will receive a tax cut of $1,304.50, a reduction of nearly 73 percent.

For Married Small Business Owners with an Income of $100,000

• A married couple who are small business owners and earn $100,000 per year will receive a tax cut of $2,603.50, a reduction of nearly 24 percent.

The Tax Cuts and Jobs Act

• This bill lowers individual tax rates to 0%, 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

• It doubles the standard deduction so that the first $12,000 earned by an individual and the first $24,000 earned by a married couple are not taxed at all.

Helps Texas Families

• This bill doubles the Child Tax Credit from $1,000 to $2,000 to help single and married parents with the cost of raising children.  This credit is fully refundable up to $1,400.

• It preserves the Adoption Tax Credit and the Child and Dependent Care Tax Credit to help families open their homes to adopted children and care for older dependents who need support.

Promotes Education and Charitable Giving

• This bill helps families and individuals save for education by allowing Texans to use 529 accounts to save for elementary, secondary, and higher education.

• It continues to support graduate students with the exemption of the value of reduced tuition from taxes.

• It preserves the deduction for charitable donations to continue to incentivize and make it easier for families to give to charity.

Lightens the Burden of Health Care Costs

• This bill expands the medical expense deduction for medical expenses exceeding 7.5 percent of adjusted gross income, and rising to 10 percent in 2019.

• It repeals Obamacare’s individual mandate so families aren’t penalized for not purchasing health care they don’t want or can’t afford.

Preserves the Property Tax Deduction

This bill allows taxpayers to continue to write off up to $10,000 in state and local taxes – including property taxes and sales taxes for Texans.