As a tax preparer, I am interested in what is your unique circumstances that causes your taxes to go up by 3k when most going down. It would help me to warn my clients.
Nothing unique about us. Retirement income treated as straight income. Solid middle class in California. Lots of deductions.
People in liberal, high tax states don’t do well in this bill, especially those owning expensive homes and making more than $300k. Frankly, it’s time to move to a no state income tax state like Nevada, Texas, or Florida for these folks.
However, I do not see how typical middle class people get hurt very badly.
The standard deduction goes up to $24k. That’s a lot of deductions for people to even hit to itemize.
Tax rate in NY is 6.65%, so if you are making $100K, that’s $6,665. If you own a $300,000 home, you pay $9K in property taxes so that’s about $15k in total deductions. The limit in the bill is $10k. This hypothetical family is only losing $5k in deductions worth just $1100 at the 22% tax rate.
Mortgage interest is unaffected up to $750k.
I can see those making $300K+ and owning expensive real estate hurting, but if they have large families, each kid is worth $2k in child tax credit they couldn’t qualify before. 4 kids can be worth $8k extra.
There’s lots of variables. Families with kids that make over $110K should do well even in NY and CA under this bill.