What You Need to Know about Tax Reform

SUMMARY TAX REFORM BILL

Individual Tax Rates

10%, 12%, 22%, 24%, 32%, 35%, 37%

Doubles the Standard Deduction

  • Individuals: from $6,350 to $12,000
  • Married Couple:  from $12,700 to $24,000

Nearly 3 out of 4 four people in IL currently take standard deductions, especially middle-income earners

Increases Child Tax Credit
Child-Tax Credit increased from $1000 to $2000 ($1,400 Refundable)
Adds a $500 credit for non-child dependents

Keeps Earned Income Tax Credit
Preserves the Earned Income Tax Credit

Education

  • Preserves the Educator Expense Deduction ($250)
  • Preserves Section 117, Qualified Tuition Reductions
  • Preserves Section 127, Qualified Tuition Assistance
  • Preserves the Student Loan Interest Deduction
  • Expands 529 Plans includes dispersions to pay elementary & secondary education

Individuals at every income level will see a tax cut

The average family of four making the country’s median income of $73,000 will receive a $2,000 tax cut.

Retains popular deductions –you can still deduct

  • mortgage interest
  • state and local taxes (SALT)  up to $10,000
  • medical expenses
  • charitable contributions

Simplified so nearly 90% of Americans will be able to file their taxes on a postcard.

Business
Lowers rates for businesses of all sizes to create more American jobs and bring back more American businesses.

The U.S. currently has the highest tax rates for businesses among industrialized countries.

Non-partisan Tax Foundation estimates 37,010 full-time jobs will be created in Illinois.

137 economists agree it will lead to “more jobs, higher wages, and a better standard of living for the American people.”