Total income $85,000
Dependents under 17 4
Dependents 17 or older 0
Itemized deductions 12,750
Personal exemption 17,400
Tax using former tax law Tax under new tax law
Taxable income: 54,850 Taxable income 54,850
Child tax credit 2,000 Child tax credit 4,000
Total taxes: 7,482 Total taxes 3,603
Tax cut under the new law $3,879
Percentage tax cut 51.84%
Increase in family income 4.56%
© 2001 Deseret News Publishing Company
Source: D. Brock Griffiths, tax specialist with Ernst & Young