So…. When I first heard about the tax bill changes, I admit, I became a little concerned. But the longer I thought about it, the more comfy I became.
I’m neither Democratic nor Republican, so that affords me the option to NOT automatically take a side simply based on what the general population believes to be true about either party. So, from that standpoint, I freed myself from being on auto-pilot that the Republicans and President Trump would pass a bill that would tear low income tax-payers to smithereens, while giving the better portion of the pot to the rich, and middle-class catching most of the fall-out.
Know this: The extent to which this already happens – and has so for years – remains unchanged.
So, I put on my financial literacy brain and started thinking about the overall details of the changes. That’s when I realized many of the changes off-set one another, thus, the end result for me would be nill. I’m pretty confident about my estimation. I stumbled upon this video and it confirmed my assumptions :-).
It is by far the best explanation of the tax bill changes I’ve seen thus far. Check it out!
If you don’t want to hear the explanations, but want to see two example side-by-side comparisons, fast-forward the video to the 11 minute mark.
Based on my current understanding of this major tax overhaul, the families who will experience the biggest increases in their tax assessment will be tax payers who claim adult dependents. This is because the exemptions have been eliminated, but the child tax credit doubled! I could be wrong about this, so don’t hold me to it just yet.
BUT, if my assumption is correct, what this says to me is this… The US Government wants every able-bodied adult to get to work – whether on a job (or several jobs) or by self-employment. 🙂
I’m not yet sure if there’s anything in the tax bill to add a credit for your adult with a disability or your elderly parents whom you may have typically claimed in past years.
That’s all I can say for now… Watch the vid!!!
Oh… Here’s a neat little online tool you can use to compare estimated tax assessments for 2017 (this year) vs. 2018 (next year)