The Effects of Tax Reform on Bob & Jane

2018 Tax Liability Decrease $2,805

If Bob and Jane each claim 0 on their W4, their 2018 tax REFUND will be $517 LESS 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.

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

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• Their 2017 joint tax liability is $12,284.  

  • Because they withheld $11,232, they will receive a refund of $1,052.

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• Their 2018 tax liability will be $9,479.

  • Because they withheld $8,944, they will receive a refund of $535.

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If Bob and Jane each claim 1 on their W4, their 2018 tax REFUND will be $829 LESS 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 $12,284.  

  • Because they withheld $9,880, they will receive a refund of $2,404.

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• Their 2018 tax liability will be $9,479.

  • Because they withheld $7,904, they will receive a refund of $1,575.

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