TAX CUTS FOR AMERICAN FAMILIES: The Tax Cuts Act means less money taken out of Americans’ paychecks.
The Tax Cuts Act provides $5.5 trillion in tax cuts, $3.2 trillion, or nearly 60 percent, of which go to families.
The Tax Cuts Act nearly doubles the standard deduction.
- For individuals, the standard deduction will be increased from $6,500 to $12,000.
- For single parents, the standard deduction will be increased from $9,550 to $18,000.
- For married couples, the standard deduction will be increased from $13,000 to $24,000.
The vast majority of American families will now be able to file their taxes on a single page because they lower taxes by claiming the standard deduction.
American families will see their Child Tax Credit doubled to $2,000 per child under age 17.
- Families will receive a new $500 tax credit for dependents age 17 or older.
- The full Child Tax Credit will now be available for families with incomes of up to $200,000 for single households and incomes of up to $400,000 for married households.
- Lower and Middle-Income families will benefit from a 40 percent increase in the refundable portion of the Child Tax Credit.
The Tax Cuts Act will repeal Obamacare’s burdensome individual mandate.
- The repeal of Obamacare’s individual mandate will provide relief to households with income below $50,000, which made up nearly 80 percent of the households that paid the mandate penalty in 2016.
The vast majority of family farms and businesses will be exempt from the estate tax.
Investments in education will be protected under the Tax Cuts Act.
- Families will now be able to use up to $10,000 from 529 college savings accounts on primary and secondary education.
- Tax-free stipends for graduate students will be maintained.
- Student loan interest will continue to be deductible.
The Tax Cuts Act preserves tax benefits important to American families.
- The Earned Income Tax Credit for low-income workers will be preserved.
- The Child and Dependent Care Tax Credit will be preserved.
- The Adoption Expense Tax Credit will be preserved.
- Retirement savings tax benefits will be preserved.