Most Americans are going to save money when the tax reform bill passed by Congress takes effect in 2018.
The bill passed on Wednesday doubled the standard deduction, increased the child tax credit and lowered the percentage of income tax paid by everyone. But it also eliminated the $4,000 personal exemption and several commonly used deductions.
How much a person will owe the government at the end of 2018 will depend on how much they earn, how many people are in their family and how they earn their income.
It will also depend on where that person lives.
People who live in states with higher local taxes like California and Connecticut may see an increase because the bill eliminates a series of deductions for state and local taxes.
To get an estimate specific to your tax situation, WUSA9 checked the math for two online calculators: (Both calculators linked below ask for the numbers on any itemized deductions, so you might need to grab your 2016 return or estimate the numbers you have for 2017.)
- Click here to use a tax plan calculator from MarketWatch.
- Click here for a tax plan calculator put together by Maxim Lott.