Will My Taxes Be Lower? Here's What You Need To Know About The New Tax Bill & How It Will Affect You

By
Share
Ad failed to load

The GOP passed a new tax plan earlier in December, and President Donald Trump signed the proposed plan into law just before Christmas. The plan, called the Tax Cuts and Jobs Act, is a massive tax reform bill that will most certainly affect every tax paying American in the country. As economists and other experts set about the work of trying to unravel the details of the complicated tax plan, regular Americans have immediate questions. Like whether or not your taxes will be lower, or if you're in for an unfortunate surprise when many of the provisions from the new tax plan are set to take effect on Jan. 1, 2018.

The tax plan, which Trump officially signed on Dec. 22 before heading to his Florida estate, Mar-a-Lago, to celebrate the holidays, is one of the most major tax overhauls in the past 30 years, according to CNN. And President Trump told reporters that this was a good thing. As CNN reported, Trump was lauding the tax measure as something that would work for everyone, especially the middle class. According to the outlet, the POTUS said:

All of this, everything in here, is really tremendous things for business, for people, for the middle class, for workers. I consider this very much a bill for the middle class and a bill for jobs.
Ad failed to load

Whether or not middle class Americans will truly benefit from the new plan, one aspect of the new tax plan appears to be certain: some taxpayers look to be paying fewer taxes in the new year. While there was discussion of breaking down the tax brackets into four groups rather than the current seven, the Senate chose to stick with seven distinct tax brackets.

Here is a run down of each tax bracket, according to The Tax Foundation, and how the new tax bill will affect your taxes next year. It should be noted that some of the tax brackets have been adjusted; for example, the new tax bracket of individual tax payers who make between $200,001 to $500,000 has been changed from the current bracket of $424,950 to $426,700.

Ad failed to load

Income Between $0 to $9,525

Under the current law, single filers in this tax bracket pay 10 percent of their income to taxes, and the new tax bill won't change that. For people filing jointly, like married couples, the income range of $0 to $19,050 would also continue to pay the same amount in taxes, 12 percent.

Income Between $9,5251 to $38,700

This group will actually pay less in taxes; rather than paying 15 percent, they will now pay just 12 percent. The same 12 percent in this bracket applies to people who file jointly (with an income range of $19,051 to $77,400).

Ad failed to load

Income Between $38,701 to $82,500

Taxpayers who are filing in this income bracket (with married filers making between $77,400 to $165,000), will actually pay less in tax. Under the current system, you would be paying 25 percent of your earnings towards taxes; with the GOP's new tax plan, you will be paying 22 percent.

Income Between $82,501 to $157,000

People who make between $82,000 to $157,000 (or those filing with a joint income of $165,000 to $315,000) will also pay fewer taxes; from 28 percent down to 24 percent.

Ad failed to load

Income Between $157,001 to $200,000

If you are in this tax bracket, you will see just a 1 percent decrease in the amount of taxes you pay, from 33 percent down to 32 percent (the same for households with a joint income of $315,000 to $400,000).

Income Between $200,001 to $500,000

Those making between $200,000 to $500,000 will be paying 35 percent of their income to taxes, which will be the same amount they pay under the current tax plan (joint filers who make $315,000 to $400,000 will also pay 35 percent).

Ad failed to load

Income Between $500,000 & Up

High income earners who make over $500,000 per year (or couples who make a combined income of $600,000) will pay less in taxes; 37 percent down from 39.6 percent.

Chip Somodevilla/Getty Images News/Getty Images
Ad failed to load

While it's exciting to consider some tax cuts in the new year, it's also important to remember that these cuts (along with higher child tax credits) are temporary. CNN reports that individual tax cuts are set to expire in 2025, which could mean the end of the tax breaks the GOP plans to implement this year. The GOP made these cuts temporary as a way to push their plan through without any Democratic votes, the outlet reported.

So it looks as though time will tell how these tax cuts might actually pan out in reality.

Check out Romper's new video series, Romper's Doula Diaries:

Ad failed to load

Watch full episodes of Romper's Doula Diaries on Facebook Watch.

Ad failed to load
Must Reads

15 Baby Names With Unique Nicknames, So Your Family Has Options

I love a good diminutive name, also known as a nickname. I believe I’m partial to them because of my own name, Abigale, but I go by Abi. And since they’re both uniquely spelled, everyone thinks my name is pronounced Ah-bee for some reason — but even …
By Abi Berwager Schreier

The Entire Family Can Enjoy These Movies & Shows Coming To Netflix In June

It's just one of those sad facts of life: every month, shows and movies vanish from Netflix, their varied excitements no longer at your fingertips. But luckily the streaming service is always prepared to fill that content void with lots of new things…
By Megan Walsh

The Reason Why Babies Smile At You Will Seriously Make You Smile

Whether you're currently the recipient of your own baby's sweet smiles or you just seem to be a magnet for baby grins in general, you might find yourself wondering why babies are always smiling at you. Sure, you could be a 'smile whisperer' but scien…
By Kate Miller

8 Ways Your Baby Is Trying To Say That, Yes, You Are Their Favorite

For a baby to show a preference for a specific person is not only normal, but an essential part of their development. Babies need to form strong attachments to their caregivers for their emotional, social, and physical wellbeing. Usually, but not alw…
By Kimmie Fink

10 Reasons Why I Won't Apologize For Giving My Toddler A Pacifier

My first child had no interest in a pacifier. I tried a couple times to get him to take one, but he always spat them out and gave me an incredulous, judgmental look. But my second? It was love at first suckle. And after a while, the incredulous, judg…
By Jamie Kenney

Being A Dog Parent Prepared Me For Having A Baby, Really

I’ve always wanted kids; I was never as sure about raising a puppy. Then I spent six months living with someone who brought home an eight-week-old golden retriever puppy, and I see no way to make it out of that experience claiming not to love dogs. I…
By Heather Caplan

20 Of The Most Popular Unisex Names Of All Time, That You'll Be Hearing More Of For Sure

You might think of unisex names as a fairly recent trend, but the truth is these versatile monikers have been commonly used throughout history (well, some more commonly than others). That's why the team over at Names.org recently compiled a list of t…
By Jacqueline Burt Cote

How To Have A Date Night With No Babysitter, Because It's Easier Than You Think

After having children, many couples feel that their love lives immediately go out the window, but it's so important to make your romantic life a priority so both you and your partner can be the best versions of yourselves you can be. As we all know, …
By Abi Berwager Schreier

9 Ways Baby No. 3 Made My Family Feel Complete

My husband and I decided to have another baby right after we got married and, well, we had no idea what we were getting into. I got pregnant right away, endured a high-risk pregnancy, and, before I knew it, my third baby had arrived. Together, we emb…
By Steph Montgomery

8 Stereotypes About New Dads That Are *Totally* True

Much like new mothers, new fathers have a lot on their plate. Parenting can be scary and complex, especially at first and regardless of your gender. People want to do right by their kids, after all. And since all new parents are a hot mess, dads are …
By Priscilla Blossom

8 Differences Between Being Pregnant In Your 20s Vs 30s, According To Science

Whether you're planning a pregnancy, or just thinking about your future family, it's typical to think about things like child-spacing, how many kids you want, and when to start trying to conceive. When making your pro/con list, you might also conside…
By Steph Montgomery

16 Moms Share Remedies For Their Most Intense Chocolate Cravings During Pregnancy

For better or worse, pregnancy is usually synonymous with odd cravings. Sure, there are the stereotypical combos like pickles and ice cream that plague gestating women the world over, but there are other mind-boggling combinations, too, including but…
By Candace Ganger

Putting Sunscreen On Your Kid Doesn't Have To Be A Fight — Here's How To Do It

I am almost translucent, so me and sunscreen are basically besties at this point. Even though my children are beautifully deep brown thanks to my husband's genetics, I still slather them like biscuits being buttered because I refuse to take risks wit…
By Cat Bowen

19 Moms Share The Way They Cured Their Pregnancy Comfort Food Cravings

I was obnoxiously sick during the first trimester with, "lucky" for me, both of my pregnancies. For the first three months I lived on saltines, lemonade, and fresh bread. Once I was able to eat, however, all I wanted was savory and sweet comfort food…
By Dina Leygerman

I Used To Judge Formula-Feeding Moms — Until I Became One

The other patrons in the hip Brooklyn restaurant probably couldn’t care less what I was feeding my baby, but I’ll always remember the shame I felt as I quickly mixed up his bottle of formula in front of them. I admitted to my childless friend that I …
By Katherine Martinelli

7 White Lies It’s Necessary To Tell To Keep Your Relationship Healthy

Telling lots of lies typically isn't associated with a healthy, strong, lasting relationship, and that's still certainly true, but not all lies are exactly the same. Though you've probably heard from someone at least once or twice that the lie they t…
By Lauren Schumacker

The Skinny Jeans That Saved Me Postpartum

Accepting my post-pregnancy body is hands-down one of the most difficult things I’ve ever done. It’s something that I still work on every single day. During my first pregnancy, I was 20 years old, so I managed to bounce back quickly. In fact, I dropp…
By Allison Cooper

7 Ways Your Baby Is Trying To Say They Feel Safe

In those first weeks of new motherhood, it can feel like you need an interpreter for your newborn. With their limited means of communication, figuring out what message your baby is trying to get across to you can be a challenge. With time, however, y…
By Kimmie Fink

Here's Why Dogs Are Obsessed With Babies' Poop, According To Science

Most family dogs seem to understand babies, and they're more than happy to make friends with the newest member of the pack. It's adorable... for the most part and until you go to change your little one's diaper. Suddenly, you're wondering why dogs ar…
By Lindsay E. Mack

6 Signs You're Meant To Have A Big Age Gap Between Kids

There's a five year age difference between my two children, to the day. Their age gap wasn't planned but, for a variety of reasons, works well for our family. And since I was so focused on having a second baby, I totally overlooked the signs that wou…
By Candace Ganger

My Dog Knew I Was Pregnant Before My Family Did

Growing up, I was 100 percent sure I'd be a mom one day. To a dog, that is. My baby plans came later. And once my husband and I were sure we wanted both a dog and a baby, we'd add to our joint dog-and-baby name list over Sunday brunch or on date nigh…
By Melissa Mills
)}