How President-Elect Trump’s Tax Plan Affect You?
Donald Trump made many promises during the presidential campaign trail. Among them were the biggest proposed tax cuts for individuals and corporations since the Reagan Administration. The American people listened and he will soon move into the White House in January. But what can taxpayers in Fort Lauderdale really expect? A September analysis of Trump’s tax plan, conducted by the nonprofit Tax Foundation, indicate many people may need to pay attention to changes in tax codes that could affect their 1040.
It is one of the of the most popular campaign promises any politician can make. Nobody wants to pay more taxes in Fort Lauderdale. Donald Trump rode the momentum all the way to victory. If Trump’s tax plan is able to make it through Congress, here are some changes you can expect.
- An individual who earns $75,000 will currently pay $11,930 according to the current tax rules. Under Trump’s plan, the same person would pay approximately $10,125. Do the math and it comes out to a savings of $1,805.
- An individual who makes $120,000 would currently pay approximately $23,739 of income taxes. That same person would save about $2,364 under the proposed Trump tax cuts.
- A person who is married and earns $100,000 would currently owe Uncle Sam $12,379 of income taxes. Under Trump’s plan, that same individual would pay $8,400, a savings of $3,979
- Married people who earn $200,000 would currently pay approximately $38,323. Under Trump’s plan, those same people would save $5,573.
All of these numbers look great on paper. But in the world of politics, there is no such thing as a sure thing. Trump’s tax plan contains many changes that may not be popular with some members of Congress. Critics of the Trump tax cuts say it will increase the budget deficit and national debt. One of the biggest differences between the Trump and Clinton campaigns concerned which people would benefit from tax cuts. Under Hillary Clinton’s tax proposals, the wealthy would expect to see higher taxes.
Should the Trump tax cuts go into effect, there are some changes you will need to discuss with your tax preparer. Under Trump’s tax plan, Fort Lauderdale residents can expect to see their current personal exemption and standard deductions change. Consider this statistic. A current standard deduction of $6,300 for an individual filer would change to $15,000. For married people, the standard deduction would change from the current $12,600 to $15,000.
Regardless of how you voted, participating in the democratic process is important. Changes in taxes affect everyone. Whether you are struggling with tax problems or have received a notification from the IRS for a tax audit, South Florida residents need effective solutions. Fort Lauderdale tax attorneys Ira L. Zuckerman, bring a track record of more than 30 combined years of experience in helping clients resolve their tax issues. To learn more contact the team at Zuckerman Law, LLC and schedule a consultation to discuss your legal options.