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Married filing jointly, one $85,000 income, four dependents under 17, itemized deductions

SHARE Married filing jointly, one $85,000 income, four dependents under 17, itemized deductions

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