Trump Tax Reform Calculator - Trump Tax Reform - GOP Tax Bill | Calculators by CalcXML

The Trump tax reform bill is another step closer to being law with the Senate bill passing its version of the Tax Cuts and Jobs Act on December 2, 2017. Now the GOP will look at how to reconcile both the Senate and the House bills into one with hopes the President will sign it before the new year. Although some changes are sure to come with the marriage of both the Senate and House bills, here is what you can expect for your 2018 taxes.

There will be a change in most of the seven tax brackets in 2018. The brackets will be as follows: 10%, 12%, 22%, 24%, 32%, 35% and 38.5%. Small business owners who are setup as S-Corporations or Limited Liability companies and receive pass-through income via a K-1 or form 1065, will be allowed to deduct 23% of their income prior to applying the personal income tax rates, and the corporate rate will be cut from 35% to 20%, taking effect in 2019.

Other features of H.R. 1, Tax Cuts and Jobs Act, will be to double the standard deduction to $12,000 for single filers and $24,000 for married filing jointly, but completely eliminate personal exemptions. State and local income tax deduction (SALT) will also be eliminated and the itemized deduction of property tax will be capped at $10,000. It also expands the medical expense deduction for two years for filers meeting that threshold from 10% AGI to 7.5% AGI. The child tax credit will increase from $1,000 to $2,000 per child under 18 years old, and filers with dependents who do not qualify for the child tax credit will be able to claim a $500 credit for each dependent. The bill also repeals the individual mandate to purchase health insurance.

With the bills in reconciliation, you can read more about how the Senate and House bills differ and how each affects your tax liability.

Use this tax calculator tool to help estimate your potential 2018 tax liability under the new plan.

Once you run this calculator then you can run the current 2017 tax calculator to see if you will be paying more or less under the new plan. We will continually refine the calculator as more information becomes available.