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