Author Topic: Quickest way to assess how the Trump Tax Cuts will affect your paycheck?  (Read 1131 times)

FrugalSaver

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All things being equal, is it as simple as taking your AGI and then for each new bracket and percentage reduced as a result of the tax cuts and adding up the reduction as you proceed down the brackets to determine how much less you'll need to give the government starting in February for the year?

Are there any sites or calculators that easily show you, if you made $100,000 in AGI or say $200,000 in AGI, here's what you paid before and now that Trump has signed the tax cuts, here's what you'll be paying in the future?

For example, if you file as SINGLE, before if you made $150,000 in AGI, you paid 28% of dollars $91,901-$150,000.
- $150,000-$91,901 = $58,099 * 28% = $16267.72

Now with the new Trump Tax cuts, 24% on those same dollars (in my example $91,901-$150,000) and less on the $ below $91,101 but I'm trying to keep this simple for illustrative purposes.
- $150,000-$91,901 = $58,099 * 24% = $13,943.76

Leaving an extra $2323.96 in your pocket and not Uncle Sam's.  WOOHOO! 

Do those assumptions and math look right?  Thoughts?


boridi

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Re: Quickest way to assess how the Trump Tax Cuts will affect your paycheck?
« Reply #1 on: January 06, 2018, 04:19:02 AM »
Your example would work if the lower brackets were exactly the same, but they are not. Just calculate the total tax owed on your income.

MDM

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Re: Quickest way to assess how the Trump Tax Cuts will affect your paycheck?
« Reply #2 on: January 06, 2018, 10:25:29 AM »
Just calculate the total tax owed on your income.
+1

E.g., using the link (for 2018) and the attachment (for 2017) in this post.