Suppose you earned $60,000.00 and didn't do with holdings through the fiscal year and you have two children, one 17 and one month years old and the other is 18 years old. Your are also married and filing jointly.
Under the GOP tax plan you could claim the $24,000.00 standard deduction.
But you can not claim the personal exemptions as the GOP plan eliminates that.
How ever the GOP plan has increased the child tax credit from $1,000.00 to $2000.00. However the provision to use the child tax credit requires your child to be under the age of 17 years old. So that doesn't apply here.
After everything is computed this filer will owe $4447.50.
Now take that same filer and if he could file only by the 2018 guidelines he would,
Get the standard deduction of !3,000.00
He could use the personal exemption of $4150 for each of the people he can claim which would result in an addition deduction of $16,600.00
After doing the math this filer owes $3607.50
The significant difference in this case is the GOP's elimination of the PERSONAL EXEMPTION. In both cases neither filer can claim the child tax credit but the personal exemption applies to all people who live in your home and you support. In this case the GOP tax plan has cost this filer an additional $840.00
Under the GOP tax plan you could claim the $24,000.00 standard deduction.
But you can not claim the personal exemptions as the GOP plan eliminates that.
How ever the GOP plan has increased the child tax credit from $1,000.00 to $2000.00. However the provision to use the child tax credit requires your child to be under the age of 17 years old. So that doesn't apply here.
After everything is computed this filer will owe $4447.50.
Now take that same filer and if he could file only by the 2018 guidelines he would,
Get the standard deduction of !3,000.00
He could use the personal exemption of $4150 for each of the people he can claim which would result in an addition deduction of $16,600.00
After doing the math this filer owes $3607.50
The significant difference in this case is the GOP's elimination of the PERSONAL EXEMPTION. In both cases neither filer can claim the child tax credit but the personal exemption applies to all people who live in your home and you support. In this case the GOP tax plan has cost this filer an additional $840.00