Friday, September 22, 2017

Trump and Single Parents

President Trump has talked a lot about making quite a few changes in how America does things. Many of these changes are going to have an impact on single parents, so if you’re in that category or know someone who is, it’s important to educate yourself on these changes and what they could mean for the single moms and dads of America.   

Changing Tax Brackets

First things first, expect to see a change in tax brackets. In case you’re not familiar with the term, tax brackets refer to the percentage of your income that you pay in taxes.

President Trump wants to condense the seven tax brackets we currently have into three tax brackets, which many think will end up raising taxes big time, especially for people who count as “head of household,” which includes, of course, many single parents.

Elimination of Personal Exemptions

Trump may also try and get rid of personal exemptions, which are responsible for reducing your earnings and, thereby, your tax bracket.

A great many single parents out there qualify for several personal exemptions that help keep their taxes low, but, if these are eliminated, it could mean higher taxes for many single parents.

A New Child Care Deduction

Another change that Trump is considering is a new deduction that would allow parents to subtract childcare costs from their incomes for up to four children.

This deduction would be very helpful for many single moms and dads as it could lower their adjusted gross incomes.

As you can see, Trump has a lot of changes in the works- these are really just a few. If you’re concerned about how some of these changes might affect you or if you have questions, remember that a tax professional is always the best person to turn to, especially in these ever-changing times.