Friday, November 24, 2017
WASHINGTON, D.C. A family of four with an income of $52,000 per year could get away without paying income tax under a plan offered by Republicans.
Rep. Dan Newhouse, R-Sunnyside, explained it in a printed release. He says it’s a result of doubling the standard deduction.
New-house noted the median household income in the 4th Congressional District is $52,484.
Assuming the median household represents a family of four with two children, he said, doubling the standard deduction to $24,000 means that $28,484 of income would remain subject to the federal income tax.
Under the new tax bracket of 12 percent, and with our bill’s expansion of the Child Tax Credit from $1,000 to $1,600, and the creation of the Family Tax Credit of $300 for each parent and non-child dependent, that means this family would be able to claim $3,800 in credits for a federal income tax liability of $0.
In the 4th Congressional District, more than 80 percent of filers use the standard deduction, he said.
That means families that opt to use the standard deduction would see a reduction in their tax liability, Newhouse said.
The average amount for itemized deductions per filer in Central Washington is roughly $21,300, he said. With the expanded standard deduction, more may be able to use the standard deduction to simplify their return.
Newhouse said the Tax Cuts and Jobs Act does not change the mortgage interest deduction for current homeowners. Under the reforms, the reduction of the mortgage interest deduction will only apply to new homes over $500,000.
Second, he said, the median value of owner-occupied homes in the 4th Congressional District is $182,000, well below the $500,000 limit.
Currently, fewer than 3.5 percent of homes in the district are valued at $500,000 or above, he said.
“I was proud to support House passage last week of the Tax Cuts and Jobs Act, Newhouse said. “I am convinced that our tax reform bill is designed to help middle-income families in Central Washington.”