PROVIDING A HELPING HAND TO MIDDLE-INCOME FAMILIES: President Trump’s tax cuts are providing a boost to middle-income families.
The Tax Cuts and Jobs Act (TCJA) cut taxes for the middle class and boosted the Child Tax Credit to provide a helping hand to American families.
The TCJA included $5.5 trillion in gross tax cuts, nearly 60 percent of which goes to families.
The TCJA will provide more than $2,000 in tax cuts in 2018 for an average family of four with an income of $75,000.
The TCJA nearly doubled the standard deduction, allowing middle-income families to exempt more of their income from taxes.
The TCJA doubled the Child Tax Credit from $1,000 to $2,000 per child and made the credit available to more middle-income families.
The new law also increases the refundable portion of the credit.
Families can now use 529 Savings Accounts to pay for qualified elementary and secondary education expenses, helping to increase their options for their children’s education.
To ensure families get the help they deserve, the TCJA preserved provisions such as the child and dependent care credit, the adoption tax credit, retirement savings tax benefits, and more.
Families facing costly medical bills benefited from the expanded medical expense deduction.
At least 100 utility companies across the country announced plans to cut rates in response to the tax cuts.