What difference does it make how much of your income is taxable? What really matters is the tax you pay. I would rather have more taxable income if it means a lower tax liability, which is exactly the case for the new law, at least for those who don’t itemize and are not in the 25% and higher tax brackets. Under the old law, a married couple with two kids could exempt $28,900 in income (12,700 std deduction plus 4x4050 for exemptions). This year that drops to $24,000. Assuming the same income overall, they have $4900 more in taxable income. Assuming a 15% marginal rate that would be an additional $735 in taxes. The increased child tax credit saves them $2000 though more than offsetting that increase.
Only works if you have kids the right age and qualify for child tax credit.
It makes a difference if the tax on that additional income is higher than the benefits of the new law. I already had over $20,000 in deductions under the old law, with over $20,000 in exemptions as well - now I have just a $24,000 deduction. I also have a child (a 17 year old) that aged out of the child tax credit, so the doubling of that credit for a younger one is just a wash with a $500 credit as a bonus.
Some people are complaining about lower refunds or higher taxes due; I’m talking about my total federal taxes I’m charged (withholdings aside).
Trust me, I appreciate all the knowledge poured out here on this forum, but this is a specific problem due to timing that will work itself out. You can search all over the internet for “who is hurt by new tax law”, and you’ll see my situation described perfectly.