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One change is the standard deduction increased from $6350 to $12,000 for single filers, from $9350 to$18,000 for heads of households, and from Latex: $12,700 to $24,000 for married couples filing a joint return. Deductions for personal and dependent exemptions, which allowed taxpayers to deduct $4050 each for themselves, their spouses, and any dependents, were eliminated completely.

Research online another way the law changed taxes. Use the search terms "2017 tax reform major changes." Use the information about standard deductions and your research to respond to the following prompts.

What impact will the change in standard deductions have on a taxpayer? Use mathematical reasoning as part of your response.
How will the change in standard deductions affect families differently than single taxpayers?
Identify one other change in the tax law.
What effect will this change have on the average taxpayer?

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User Couitchy
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1 Answer

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Answer: I tried...

Effect on Families vs. Single Taxpayers:

The change in standard deductions affects families differently than single taxpayers primarily because families often have higher expenses related to housing, education, and childcare.

Families with higher expenses may still itemize their deductions if their total itemized deductions (including mortgage interest, property taxes, medical expenses, etc.) exceed the increased standard deduction. This can be more common for families with significant mortgage interest and property tax payments.

Single taxpayers, on the other hand, may find it easier to benefit from the higher standard deduction, as they typically have lower expenses and may not have enough itemized deductions to exceed the standard deduction threshold.

Another Change in the Tax Law:

Another significant change in the tax law was the reduction of the corporate tax rate from 35% to 21%. This reduction was aimed at stimulating economic growth, encouraging business investment, and potentially leading to job creation.

The effect on the average taxpayer can be indirect. Lower corporate taxes could potentially lead to increased economic activity, which might translate into more job opportunities and potentially higher wages for individuals. However, the impact on the average taxpayer can vary widely depending on their employment status, industry, and region.

It's important to note that tax laws are complex, and the impact on individual taxpayers can vary based on their unique financial situations. Consulting with a tax professional or using tax software can help individuals understand how these changes specifically affect them.

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User Ceasar
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