what concerns me most about both the house and senate versions is the elimination of the personal exemptions ($4,050 x each family member). And to the degree that I have seen it mentioned, it’s been in the context of a single person or married couple.
for my family of 5 however, this increases my taxable income by $20,250.
If some of those are children, you may be able to directly reduce your taxes owed by a $1650 tax credit per child, which may net better than reducing your taxable income. You will also be paying your tax on that taxable income with a reduced rate, btw.
The child tax credit is $2000 per kid up till $500k income. Assuming you’re under that, you win bigly. A $2000 tax credit is much more valuable than a $4100 exemption or deduction.
for my family of 5 however, this increases my taxable income by $20,250.
I'm concerned about this as well, and not sure if the child tax credit will make up for the exemptions, particularly since only the first $1000 of the CTC is refundable (I don't know if this is the same with the $1600 House plan).
An E-6 in the Navy with 14 years, I make $45,018 taxable income (this doesn't include non-taxed allowances for housing and food). A Florida resident, I am the sole wage earner and my wife is currently pregnant with our 4th child.
Under the old tax plan, I claimed one exemption at the single rate on my federal withholding and received a very large tax return that I have grown quite used to. If it is no longer there, I will not be happy.