(12-06-2017 01:59 PM)BobL Wrote:  

(12-06-2017 01:53 PM)UofMstateU Wrote:  

(12-06-2017 01:02 PM)BobL Wrote:  

(12-06-2017 12:45 PM)UofMstateU Wrote:  

(12-06-2017 12:11 PM)BobL Wrote:  Depending on what happens during reconciliation ill either pay a little more or alot more in taxes.

I currently file as HOH with one dependent. That puts me in the 25% bracket, with two exemptions plus mortgage interest, property tax and charitable deductions as itemized deductions. My total itemized deductions are around 24k add the personal exemptions of 8k, thats 32k I am able to write off my gross.

As i understand the 2 bills

Under the House plan I lose property taxes and personal exemptions, which takes me from 32 K to 17K, tax rate stays at 25%.

Under Senate plan I lose personal exemptions which takes me from 32K to 24, tax rate goes to 24%.

You lose personal exemptions, but gain a standard deduction to $24K which is almost double what it was. You now have a 12% bucket for anything up to $90K, and a 25% bucket for anything above that (to about $250K)

Under the old plan, you had a $12K standard deduction. Then you had a 10% bracket to $18K, a 15% bracket to $76K, a 25% to $150K, a 28% to $233 and a 33% to $250K.

You will be hard pressed to find a scenario where you will pay more federal taxes under the new plan than you were under the old one. Even if you were to lose some overall deduction amount, the brackets are much better for those making up to $250K.

The standard deduction is used ONLY if I choose not to itemize. Since my write-offs exceed the standard deduction I will itemize and forgo the standard deduction.

Again my situation is a bit different than most(single Dad) but I will pay more(child credit does not apply to me)

You can still itemize. But the standard deduction is higher under the new law, so you may not have to.

It would really depend on what majr deduction (and it would have to be major) that you are losing that the increase in the standard wouldnt cover. Even then, the brackes are adjusted so that you would be paying far less in taxes even if more of the income is exposed to taxes.

See my original post.... my current deductions total 32K at a 25% rate.
The best Ill do under the proposed plans is total deductions of 24k at a 24% rate. The worst I can do is 14K in deductions at a 25% rate.

I am paying more in taxes under either plan.

For a married couple with 2 kids, living in an apartment or in states with low property taxes the new plan will benefit them....but not me, a single dad, with a mortgage in a high property tax state.

Property taxes and mortgage interest are still deductible. (At least in the house plan) So if you exceed the standard, you would still itemize those.