The voices of Tax Policy Center's researchers and staff
Want to learn how the new Tax Cuts and Jobs Act (TCJA) affects taxpayers in different situations? Want to know how it affects you? Of course you do. Now, the Tax Policy Center has a calculator for that.
TPC’s new online calculator allows you to see how representative taxpayers would do under the new law and to create unique examples yourself. If you choose the DIY option, just plug in marital status, age, number and age of kids, amounts and sources of income, and expenses. The calculator will do the rest. It will take you less than a minute—once you get the info together.
For example, I picked a couple with three kids under 16 who make $100,000--$75,000 in wage income and $25,000 from a sole proprietorship. I gave them $5,000 in mortgage interest and $14,000 in state and local taxes. Turns out they’d pay $19,677 under current law and $16,934 under the new law.
What if their income was all wages and salary, instead of part business income? Then, they’d pay $20,235 under current law and $18,039 under TCJA.
Remember, these are just rough estimates. TPC did not include all tax issues, and the calculator won’t replace your accountant or online software. But it will give you a rough idea of how you, and your friends, would do under the TCJA. If you have any comments on the calculator, we welcome your feedback at firstname.lastname@example.org.
Posts and Comments are solely the opinion of the author and not that of the Tax Policy Center, Urban Institute, or Brookings Institution.