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Prepay 2018 union dues to get deduction?
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<blockquote data-quote="GameCockFan" data-source="post: 3282761" data-attributes="member: 44159"><p>It seems to me that the increase in the child credit from 1,000 to 2,000 doesn't offset the loss of 4,050 personal exemption. Some families taxes bills will go up. Doesn't really affect me.</p><p></p><p><span style="font-size: 18px"><strong>You Take a Personal Exemption</strong></span></p><p>Well, pretty much everyone does. But that's about to end. For 2017, the exemption amount is $4,050 each for individuals, spouses and dependents, including children. This amount is not subject to any income tax at all. What it does is lower your taxable income.</p><p></p><p>Starting in 2018, that exemption goes away. The exemption’s elimination might actually offset the doubling of the standard deduction for families since deductions and exemptions both reduce your taxable income. Here are three examples:</p><p></p><p>You're Single, with No Children</p><p></p><p>Standard deduction increases from $6,350 to $12,000.</p><p></p><p>Personal exemptions decrease from $4,050 to $0.</p><p></p><p><em>Old tax break:</em> $10,400.</p><p></p><p><em>New tax break: </em>$12,000.</p><p></p><p>You're Married Filing Jointly, with No Children</p><p></p><p>Standard deduction increases from $12,700 to $24,000.</p><p></p><p>Personal exemptions decrease from $8,100 to $0.</p><p></p><p><em>Old tax break:</em> $21,100.</p><p></p><p><em>New tax break:</em> $24,000.</p><p></p><p>*If you itemized before, you got a $21,100 tax break for the standard deduction and your two personal exemptions, plus the amount you itemized, so you might not be coming out ahead under the new plan.</p><p></p><p>You're Married Filing Jointly, with Two Children</p><p></p><p>Standard deduction increases from $12,700 to $24,000.</p><p></p><p>Personal exemptions decrease from $16,200 to $0.</p><p></p><p><em>Old tax break:</em> $28,900.</p><p></p><p><em>New tax break:</em> $24,000.</p><p></p><p>*The difference is not entirely offset by the increase in the child tax credit from $1,000 to $2,000 per child.</p><p></p><p></p><p></p><p>Read more: <a href="https://www.investopedia.com/taxes/how-gop-tax-bill-affects-you/#ixzz52xBxyTyY" target="_blank">How the GOP Tax Bill Affects You | Investopedia</a> <a href="https://www.investopedia.com/taxes/how-gop-tax-bill-affects-you/#ixzz52xBxyTyY" target="_blank">How the GOP Tax Bill Affects You</a></p></blockquote><p></p>
[QUOTE="GameCockFan, post: 3282761, member: 44159"] It seems to me that the increase in the child credit from 1,000 to 2,000 doesn't offset the loss of 4,050 personal exemption. Some families taxes bills will go up. Doesn't really affect me. [SIZE=5][B]You Take a Personal Exemption[/B][/SIZE] Well, pretty much everyone does. But that's about to end. For 2017, the exemption amount is $4,050 each for individuals, spouses and dependents, including children. This amount is not subject to any income tax at all. What it does is lower your taxable income. Starting in 2018, that exemption goes away. The exemption’s elimination might actually offset the doubling of the standard deduction for families since deductions and exemptions both reduce your taxable income. Here are three examples: You're Single, with No Children Standard deduction increases from $6,350 to $12,000. Personal exemptions decrease from $4,050 to $0. [I]Old tax break:[/I] $10,400. [I]New tax break: [/I]$12,000. You're Married Filing Jointly, with No Children Standard deduction increases from $12,700 to $24,000. Personal exemptions decrease from $8,100 to $0. [I]Old tax break:[/I] $21,100. [I]New tax break:[/I] $24,000. *If you itemized before, you got a $21,100 tax break for the standard deduction and your two personal exemptions, plus the amount you itemized, so you might not be coming out ahead under the new plan. You're Married Filing Jointly, with Two Children Standard deduction increases from $12,700 to $24,000. Personal exemptions decrease from $16,200 to $0. [I]Old tax break:[/I] $28,900. [I]New tax break:[/I] $24,000. *The difference is not entirely offset by the increase in the child tax credit from $1,000 to $2,000 per child. Read more: [URL='https://www.investopedia.com/taxes/how-gop-tax-bill-affects-you/#ixzz52xBxyTyY']How the GOP Tax Bill Affects You | Investopedia[/URL] [URL='https://www.investopedia.com/taxes/how-gop-tax-bill-affects-you/#ixzz52xBxyTyY']How the GOP Tax Bill Affects You[/URL] [/QUOTE]
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