Here’s how your tax bracket will change in 2018

Finance

Congress has passed the massive Republican tax bill.

The bill, called the Tax Cuts and Jobs Act, is heading to President Donald Trump’s desk for a signature to enact it, though it’s unclear when that will happen.

The bill is set to make sweeping changes to the tax code for businesses and, on average, American taxpayers.

Here’s how this new tax plan will change federal income tax brackets in 2018 compared with those in 2017.

First, for single filers:

10%: $0 to $9,525 of taxable income for an individual
12%: $9,526 to $38,700
22%: $38,701 to $82,500
24%: $82,501 to $157,500
32%: $157,501 to $200,000
35%: $200,001 to $500,000
37%: over $500,001

And second, for joint filers:

10%: $0 to $19,050 for married joint filers
12%: $19,051 to $77,400
22%: $77,401 to $165,000
24%: $165,001 to $315,000
32%: $315,001 to $400,000
35%: $400,001 to $600,000
37%: Over $600,000
Under the final version of the Republican plan, there will still be seven federal income tax brackets — but at slightly lower rates and adjusted income ranges.

About 70% of Americans claim the standard deduction when filing their taxes, and their paychecks will almost certainly increase — albeit slightly.

In 2017, the standard deduction for a single taxpayer is $6,350, plus one personal exemption of $4,050.

The Republican bill combines those into one larger standard deduction for 2018: $12,000 for single filers and $24,000 for joint filers.

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