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Married filing jointly, $45,000 total income, four dependents under 17

SHARE Married filing jointly, $45,000 total income, four dependents under 17

Total income $45,000

Dependents under 17 4

Dependents 17 or older 0

New Standard deduction 9,100

Former Standard deduction 7,600

Personal exemption 17,400

Tax using former tax law Tax under new tax law

Taxable income: 20,000 Taxable income 18,500

Child tax credit 2,000 Child tax credit 4,000

Total taxes: 1,000 Total taxes 0

Tax cut under the new law $1,000

Marriage penalty relief 225

Increased child credit 75

Rate change 700

Percentage tax cut 100.00%

Increase in family income 2.22%


© 2001 Deseret News Publishing Company

Source: D. Brock Griffiths, tax specialist with Ernst & Young