@gwraigty said in How will the new tax bill affect your taxes?:
Using our YTD figures, our federal taxes will go down by over $2,300.
We live in a LCOL area. We don’t itemize. The doubling of the standard deduction is more beneficial than the current personal exemptions we can take. Ordinary income that was taxed in the 15% tax bracket will be taxed at 12%, while ordinary income that was taxed in the 25% tax bracket will be taxed at 22%. LTCG bracket remains the same at 15%. HSA deduction increases in 2018 due to the ability to make $1000 catch-up contribution.
Ah, there’s the rub. If you don’t already itemize, the increased standard deduction is a huge win. I have $44k in itemized deductions, so the increased standard deduction does me squat. We feel the full brunt of the $8100 eliminated exemption. And since $14k of my itemized deductions is comprised of property and state income taxes, I end up losing another $4k in deductions, meaning my taxable income increases by $12k over current. The change in the brackets helps me some, but is more than overcome by the increase in TI. 😾
Glad it’s working for you, though.