Author Topic: Trump-Republican tax plan, Bad for large families  (Read 64993 times)

Offline thaber

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Re: Trump-Republican tax plan bad for large families
« Reply #765 on: December 20, 2017, 04:18:08 PM »
Did some googling - doesn't appear to be true, with the possible exception of Alabama.
Awesome. Thanks. So what's the advantage of in state plans in states that don't allow deduction?

Offline skyguy918

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Re: Trump-Republican tax plan bad for large families
« Reply #766 on: December 20, 2017, 04:46:54 PM »
Awesome. Thanks. So what's the advantage of in state plans in states that don't allow deduction?
There's lots of sites that go through the pros and cons of each plan. There may be some states where choosing your in-state plan makes basically no sense in comparison to some of the other options.

Offline thaber

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Re: Trump-Republican tax plan bad for large families
« Reply #767 on: December 20, 2017, 04:52:19 PM »
There's lots of sites that go through the pros and cons of each plan. There may be some states where choosing your in-state plan makes basically no sense in comparison to some of the other options.
That's what I recall when I looked into it, like in 2012.

Offline aygart

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Re: Trump-Republican tax plan bad for large families
« Reply #768 on: December 20, 2017, 04:53:01 PM »
But do you disagree?
I agree that this is most likely
Just because things turned out a certain way doesn't mean you were right.

Offline Deal Guy

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Re: Trump-Republican tax plan bad for large families
« Reply #769 on: December 23, 2017, 08:42:08 PM »
Does the title of this thread stand correct in this scenario? (25% bracket)

A family of 7 children would get an exemption of $37,350 (9 people x $4150 exemption in 2018) under the current law.
With the new tax law he will now save an additional $7000 due to the additional $1000 child tax credit per child (assuming his kids are all under 17). That new $7000 is worth a $28,000 "deduction" for someone in the 25% bracket.
That is still $9,350 short of what he would've received in Personal Exemptions.

More so, if 3 of his kids are over 17, he would get a new $4000 exemption for the first 4 kids, plus $500 for each of the 3 older kids. That new $5,500 is worth a $22,000 "deduction" for someone in the 25% bracket.
That is still $15,350 short of what he would've received in Personal Exemptions.

Offline avromie7

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Re: Trump-Republican tax plan bad for large families
« Reply #770 on: December 23, 2017, 08:58:50 PM »


Does the title of this thread stand correct in this scenario? (25% bracket)

A family of 7 children would get an exemption of $37,350 (9 people x $4150 exemption in 2018) under the current law.
With the new tax law he will now save an additional $7000 due to the additional $1000 child tax credit per child (assuming his kids are all under 17). That new $7000 is worth a $28,000 "deduction" for someone in the 25% bracket.
That is still $9,350 short of what he would've received in Personal Exemptions.

More so, if 3 of his kids are over 17, he would get a new $4000 exemption for the first 4 kids, plus $500 for each of the 3 older kids. That new $5,500 is worth a $22,000 "deduction" for someone in the 25% bracket.
That is still $15,350 short of what he would've received in Personal Exemptions.
someone making enough money to be in that bracket, would have been phased out of the child tax credit so they are now getting a $14,000 credit that they would not have gotten.

I wonder what people who type "u" instead of "you" do with all their free time.

Offline precise

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Re: Trump-Republican tax plan bad for large families
« Reply #771 on: December 23, 2017, 09:18:03 PM »
Does the title of this thread stand correct in this scenario? (25% bracket)

A family of 7 children would get an exemption of $37,350 (9 people x $4150 exemption in 2018) under the current law.
With the new tax law he will now save an additional $7000 due to the additional $1000 child tax credit per child (assuming his kids are all under 17). That new $7000 is worth a $28,000 "deduction" for someone in the 25% bracket.
That is still $9,350 short of what he would've received in Personal Exemptions.

More so, if 3 of his kids are over 17, he would get a new $4000 exemption for the first 4 kids, plus $500 for each of the 3 older kids. That new $5,500 is worth a $22,000 "deduction" for someone in the 25% bracket.
That is still $15,350 short of what he would've received in Personal Exemptions.
And don't forget the actual rates were slashed as well..

Offline Deal Guy

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Re: Trump-Republican tax plan bad for large families
« Reply #772 on: December 23, 2017, 09:24:29 PM »
someone making enough money to be in that bracket, would have been phased out of the child tax credit so they are now getting a $14,000 credit that they would not have gotten.


The 25% bracket starts at $77,000. Someone who makes $100,000 was eligible for child tax credit.


Offline Sport

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Re: Trump-Republican tax plan bad for large families
« Reply #773 on: December 23, 2017, 09:25:32 PM »
The 25% bracket starts at $77,000. Someone who makes $100,000 was eligible for child tax credit.
25% of whats above 77k

Offline avromie7

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Re: Trump-Republican tax plan bad for large families
« Reply #774 on: December 23, 2017, 09:27:22 PM »
The 25% bracket starts at $77,000. Someone who makes $100,000 was eligible for child tax credit.
In the new tax plan, there is no 25% bracket, there is a 24% bracket that starts at 165k for married.
I wonder what people who type "u" instead of "you" do with all their free time.

Offline Deal Guy

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Re: Trump-Republican tax plan bad for large families
« Reply #775 on: December 23, 2017, 09:27:46 PM »
25% of whats above 77k
Taxable income

Offline Deal Guy

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Re: Trump-Republican tax plan bad for large families
« Reply #776 on: December 23, 2017, 09:29:04 PM »
In the new tax plan, there is no 25% bracket, there is a 24% bracket that starts at 165k for married.
In the old plan
http://forums.dansdeals.com/index.php?topic=68913.msg1855949#msg1855949

Offline avromie7

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Re: Trump-Republican tax plan bad for large families
« Reply #777 on: December 23, 2017, 09:39:02 PM »
In the old plan
http://forums.dansdeals.com/index.php?topic=68913.msg1855949#msg1855949
You're right. I just ran the numbers in the calculator, someone making 100k with 7 kids taking the standard deduction, is saving $4756. If he itemizes, he'll still save but not as much, it all depends on the details.
I wonder what people who type "u" instead of "you" do with all their free time.

Offline mr12

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Re: Trump-Republican tax plan bad for large families
« Reply #778 on: December 23, 2017, 11:26:55 PM »
The 25% bracket starts at $77,000. Someone who makes $100,000 was eligible for child tax credit.
The phaseout for child tax credit began at 110 AGI. Someone with personal exemptions plus minimum of standard deduction totaling close to 50k, all of which was running through 25% bracket, would have AGI well above 110.

Offline mr12

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Re: Trump-Republican tax plan bad for large families
« Reply #779 on: December 23, 2017, 11:30:58 PM »
someone making enough money to be in that bracket, would have been phased out of the child tax credit so they are now getting a $14,000 credit that they would not have gotten.
Not completely true, because you need to compare personal exemption times marginal tax rate under the old way, to the extra 1000 credit per child under the new way. For most people it's a gain, but not a full 1000 gain