Real Numbers Under the New Tax Law

A lot of our clients have asked us, “How will the new tax law impact me?”  Not only is it an important question, it takes real numbers to understand the impact of a law change like the Tax Cuts and Jobs Act.  As we have gone through our busy tax season, we have compiled an analysis of our clients returns and compared their 2017 income to how it would be taxed under the new law.*  We will keep this post going as we move through the next few weeks.

*In all examples, we used their exact income figures from 2017, such as wages, interest, dividends, capital gains, business income, etc., to analyze their savings or additional taxes under the new law.


Husband and wife, ages 35 & 33, no dependents

Adjusted gross income – $336,995

Itemized deductions – 2017 $38,524  |  2018 $27,386 (due to state tax limitations)

Personal exemptions – 2017 $6,840  |  2018 $0 (eliminated under new law)

Total tax liability – 2017 $74,160  |  2018 $64,045

Tax savings under new law – $10,115 


Retired single individual, age 74, no dependents

Adjusted gross income – $83,099

Itemized deductions – 2017 $18,330  |  2018 $15,631 (due to state tax limitations and removal of miscellaneous deductions)

Personal exemptions – 2017 $4,050  |  2018 $0 (eliminated under new law)

Total tax liability – 2017 $10,480  |  2018 $10,476

Tax savings under new law – $4


 Husband and wife, age 49 & 44, 2 dependents, ages 15 & 10

Adjusted gross income – $386,904

Itemized deductions – 2017 $25,160  |  2018 $24,000 (standard deduction due to state tax limitations)

Personal exemptions – 2017 $6,840  |  2018 $0 (eliminated under new law)

Child tax credit – 2017 $0 (due to AGI limitations)  |  2018 $4,000

Total tax liability – 2017 $90,161  |  2018 $69,829

Tax savings under new law – $20,332


Single taxpayer, age 39, no dependents

Adjusted gross income – $63,218

Standard deduction – 2017 $6,350  |  2018 $12,000

Personal exemptions – 2017 $4,050  |  2018 $0 (eliminated under new law)

Total tax liability – 2017 $8,945  |  2018 $7,209

Tax savings under new law – $1,736


Husband and wife, ages 50, 1 dependents, age 19 

Adjusted gross income – $723,414

Itemized deductions – 2017 $61,506  |  2018 $45,209 (due to state tax limitations)

Personal exemptions – 2017 $0  |  2018 $0 (eliminated under new law)

Total tax liability – 2017 $204,107  |  2018 $188,195

Tax savings under new law – $15,912


Single taxpayer, age 41, 1 dependent age 10 (head of household filing status)

Adjusted gross income – $90,648

Itemized deductions – 2017 $17,534  |  2018 $18,000 (standard deduction under new law)

Personal exemptions – 2017 $8,100  |  2018 $0 (eliminated under new law)

Child tax credits – 2017 $800  |  2018 $2,600

Total tax liability – 2017 $9,709  |  2018 $7,926

Tax savings under new law – $1,783