New tax proposal, do the number for yourself WRT your situation

There has been a lot of discussion about this but until you do the numbers for yourself don't let anyone tell you if it is good or bad for you.

I am NOT a tax attorney or CPA so if anyone sees errors point them out and help make this work for people, no need to call me or anyone else and idiot while doing it.

I will use 1040 long form line numbers but you can find the number on the shorter form by looking for the "word".

1. Get your 2016 taxes and get your AGI (adjusted gross income) line 37/38. This may change if they change the 23-35 exemptions like student loan interest so you can plug that in if you like.
Once you have your AGI go to step 2 if you take the standard deduction or on to step 3 if you itemize

2. Get the standard deduction line 40 and add the personal exemptions line 42 from your 2016 1040, if this is less than the proposed 12k/24k single/married std deduction then your Taxable Income will be higher under the new plan. But in any case subtract 12k if single or 24k if married from your AGI to get Taxable income and go to step 4

3. If you itemize you will need to determine if the new proposal reduces your deductions. If you have a mortgage of less than 500k and property taxes less than 10K and no state income tax deduction your itemized deductions will stay the same just subtract them (line 40) from your AGI and go to step 4. If you have any or all of those situations you will need to estimate the new deductions by subtracting the percentage of your mortgage deduction over 500k (ie if it is a 1m loan subtract half) ETA if you have a current jumbo it doesn't change the deduction it is only for NEW mortgages), then subtract any property tax over 10K and any state income tax paid. This would now be your new itemized deduction if it is more than the proposed 12/24 std deduction subtract the new itemized deduction to get your new taxable income if it is less than the 12/24 std deduction subtract 12k if single and 24k if married to get your TI (you will now not itemize)


4 Once you have your new taxable income it is time to compare that to the 2016 taxes directly.

Get your tax from line 44 of the 2016 1040

Now for a little more math.

This is to determine your new tax to compare with 2016 line 44 above.

If you are marrried:

If you make up to 90k multiple your Taxable Income (TI) by .12 = tax

If you make more than 90k up to 260k subtract 90k from your TI and multiply that by .25 and ADD 10800 = tax

If you make more than 260k up to 1m subtract 260k from your TI and multiply by .35 AND add 53300 = tax


Single

If you make up to 45k multiple your Taxable Income (TI) by .12 = tax

If you make more than 45k up to 200k subtract 45k from your TI and multiply that by .25 and ADD 5400 = tax

If you make more than 200k up to 500k subtract 200k from your TI and multiply by .35 AND add 44150 = tax


Now you have your proposed tax and your 2016 tax so it should give you a decent clue.


Again I did all the math for the new brackets since I didn't find them done, I think I am right but not going to check again so proofing is appreciated.