The Effects of Tax Reform on Bob & Jane's Family

2018 Tax Liability Decrease $2,857

If Bob and Jane each claim 0 on their W4, their 2018 tax REFUND will be $569 MORE than 2017.

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• In 2017, their employers withheld federal taxes of $108 each week, totaling $11,232. 

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• In 2018, their employers will withhold federal taxes $86 each week, totaling $8,944.

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• Bob and Jane will each take home an additional $22 per week.

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• Their 2017 joint tax liability is $8,336.  

  • Because they withheld $11,232, they will receive a refund of $2,896.

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• Their 2018 tax liability will be $5,479.

  • Because they withheld $8,944, they will receive a refund of $3,465.

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If Bob and Jane each claim 1 on their W4, their 2018 tax REFUND will be $881 MORE than 2017.

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• In 2017, their employers withheld federal taxes of $95 each week, totaling $9,880. 

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• In 2018, their employers will withhold federal taxes $76 each week, totaling $7,904.

• Bob and Jane will each take home an additional $19 per week.

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• Their 2017 joint tax liability is $8,336.  

  • Because they withheld $9,880, they will receive a refund of $1,544.

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• Their 2018 tax liability will be $5,479.

  • Because they withheld $7,904, they will receive a refund of $2,425.

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If Bob and Jane each claim 2 on their W4, their 2018 tax REFUND will be $985 MORE than 2017.

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• In 2017, their employers withheld federal taxes of $85 each week, totaling $8,840. 

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• In 2018, their employers will withhold federal taxes $67 each week, totaling $6,968.

• Bob and Jane will each take home an additional $18 per week.

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• Their 2017 joint tax liability is $8,336.  

  • Because they withheld $8,840, they will receive a refund of $504.

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• Their 2018 tax liability will be $5,479.

  • Because they withheld $6,968, they will receive a refund of $1,489.

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If Bob and Jane each claim 4 on their W4, they will PAY IN $1,609 LESS than 2017. 

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• In 2017, their employers withheld federal taxes of $60 each week, totaling $6,240. 

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• In 2018, their employers will withhold federal taxes $48 each week, totaling $4,992.

• Bob and Jane will each take home an additional $12 per week.

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• Their 2017 joint tax liability is $8,336.  

  • Because they withheld $6,240, they will owe an additional $2,096.

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• Their 2018 tax liability will be $5,479.

  • Because they withheld $4,992, they will owe an additional $487.

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