~ Dan Caplinger (TMFGalagan)
Find out how middle-income taxpayers will benefit from tax reform — in most cases.
Tax time is nearly upon us, and for once, taxpayers are actually looking forward to filing their 2018 returns. That’s because tax reform laws took effect for the 2018 tax year, and so people are naturally curious how much they’re going to save as a result of the changes.
There’s no substitute for doing the math that applies to your own specific situation, and no one answer will be true for everyone. Of particular significance with your taxes is what filing status you qualify for and how many people are in your household. But by making some basic assumptions, you can at least get a sense of what the net overall impact of tax reform is likely to be. The U.S. Census Bureau recently said that the latest median household income figures came in at $61,372, and so we’ll look at that number to look at a couple of common family situations and what taxpayers in those situations can expect from the new tax laws when they file their returns.