The sausage is ready!
Even though the new tax bill won’t be signed until January 3rd of 2018, the effects are already being seen; “AT&T, Comcast giving $1000 bonuses to hundreds of thousands of workers after tax bill“. Most taxpayers will see a decrease in taxes beginning in 2018 because the tax brackets are going from the current levels of 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%, to 10%, 12%, 22%, 24%, 32%, 35% and 37% respectively. So all but the lowest income earner will have bigger paychecks through the year 2025-when the tax brackets are slated to revert to the current levels.
A huge bump in deductions!
Standard deductions under the new tax bill will be greatly increased. The current amounts are $6,500 for individuals, $9,550 for heads of households (HOH), and $13,000 for married couples filing jointly. Under the new bill those rates increase to $12,000 for individuals, $18,000 for HOH, and $24,000 for married couples filing jointly. To see all of the details of the conference bill that was agreed to by the House and the Senate, go to Forbes.com which has a complete breakdown.