What Tax Reform Means for Texans

In: All News   Posted 12/19/2017

The Tax Cuts and Jobs Act

Protects Texans’ Hard-Earned Money:

  • This bill lowers individual tax rates to 0%, 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
  • It doubles the standard deduction so that the first $12,000 earned by an individual and the first $24,000 earned by a married couple are not taxed at all.

Helps Texans with the Cost of Family Care:

  • This bill doubles the Child Tax Credit from $1,000 to $2,000 to help single and married parents with the cost of raising children.  This credit is fully refundable up to $1,400.
  • It preserves the Adoption Tax Credit and the Child and Dependent Care Tax Credit to help families open their homes to adopted children and care for older dependents who need support.

Promotes the Pursuit of Education and Charitable Donations:

  • This bill helps families and individuals save for education by allowing Texans to use 529 accounts to save for elementary, secondary, and higher education.
  • It continues to support graduate students with the exemption of the value of reduced tuition from taxes.
  • It preserves the deduction for charitable donations to continue to incentivize and make it easier for families to give to charity.

Assists with High Medical Expenses:

  • This bill expands the medical expense deduction for medical expenses exceeding 7.5 percent of adjusted gross income, and rising to 10 percent in 2019.
  • It repeals Obamacare’s individual mandate so families aren’t penalized for not purchasing health care they don’t want or can’t afford.

Allows Texans to Deduct Property Taxes:

  • This bill allows taxpayers to continue to write off up to $10,000 in state and local taxes – including property taxes and sales taxes for Texans.


What does this mean for you?

For a Typical Family of Four:

  • The typical family of four earning the median family income of $73,000 will receive a tax cut of $2,058, a reduction of nearly 58 percent.

For a Single Parent Earning $41,000 per Year:

  • A single parent with one child and an annual income of $41,000 will receive a tax cut of $1,304.50, a reduction of nearly 73 percent.

For Married Small Business Owners with an Income of $100,000:

  • A married couple earning $100,000 per year ($60,000 from wages, $25,000 from their non-corporate business, and $15,000 in business income) will receive a tax cut of $2,603.50, a reduction of nearly 24 percent.