Impact of GOP tax overhaul

[spence]

Originally Posted by Jim in CT

I have the same number of exemptions on my W-4 as I had 2 weeks ago. They lowered some tax rates. That can lower your withholding, without screwing your return next April.

That depends on how your taxes are structured. I itemize so the SALT cap and elimination of personal exemptions could be problematic when I file next year...Not sure if the lower rates will offset what I'm losing in deductions.

[Jim in CT]

Originally Posted by spence

...Not sure if the lower rates will offset what I'm losing in deductions.

For me, the lower rates would not fully offset the ability to fully deduct SALT (I itemize too). But what pushes this into the 'win' column for me, is the greatly expanded childcare credits. Higher credits for each kid (I think), and higher incomes before they phase out - I have 3 kids. This, combined with the lower rates, will mean my net pay increases. No thanks to any of the congressional delegation in Connecticut.