Could Some Wealthy Taxpayers Pay More Taxes With Trump?

shutterstock_546595351

 

Are you ready for some new tax policies under President-Elect Donald Trump? Ready or not, there are likely going to be big changes to the nation’s tax system when Trump takes office this month. All the talk since the election began has been about Trump’s tax cuts helping the rich get richer.

While it’s true that many of the country’s top earners will benefit from Trump’s proposed tax changes, not all of the wealthy stand to benefit. In fact, there are some that could actually see their taxes increase under Trump’s plan.

So who are these unlucky individuals? Well, it turns out that several taxpayers that once fell into the 28 percent tax bracket would now end up in the highest tax bracket under Trump’s three-bracket plan. That means these families and individuals would see their tax rate increase to 33 percent.

So how much do you have to make to end up in the highest bracket? If you are an individual that makes between $112,500 and $190,150 in gross income, or you are married or filing jointly and make between $225,000 and $231,450 in gross income then you would be subject to the new higher rate.

For example, if you make $225,000 your tax bill would be $63,000 at a rate of 28 percent. With a 33 percent tax rate your bill would jump to $74,250. That’s a significant increase. So while many of the nation’s top earners will see a decrease in taxes, there are several wealthy taxpayers who will actually pay more under Trump.

http://www.marketwatch.com/story/the-wealthy-americans-who-may-pay-more-taxes-under-trump-2016-12-29

Posted in
Many Taxpayers Surprised by Smaller Refunds

Many Taxpayers Surprised by Smaller Refunds

Many Taxpayers Surprised by Smaller Refunds Sticker shock in the retail industry is not uncommon. But many taxpayers, this year, have been getting somewhat of a sticker shock when it comes to their tax refunds. That’s because so far this tax season, refunds have been down. Way down.   The Tax Cut and Jobs Act came with…

Don’t Expect to Find These Deductions When You File This Year

Don’t Expect to Find These Deductions When You File This Year

Don’t Expect to Find These Deductions When You File This Year A lot has been made of the all the tax changes this year, thanks to the Tax Cut and Jobs Act. Many of the laws have been altered and some have been completely eliminated. Certain credits have been cut, while others have been increased.…

Florida Man Tries to Keep Huge Tax Refund That Was A Mistake

Florida Man Tries to Keep Huge Tax Refund That Was A Mistake

Florida Man Tries to Keep Huge Tax Refund That Was A Mistake Just about every taxpayer eagerly waits for his or her tax refund this time of year. No matter what they plan to do with it, taxpayers can’t wait for that fat check from the IRS. But what if you somehow got a huge…

How Much Will Amazon Pay in Taxes on $11.2 Billion in Profit?

How Much Will Amazon Pay in Taxes on $11.2 Billion in Profit?

You might think a company that makes more than $11 billion in profit would have a huge tax bill. After all, that makes complete sense. However, in the case of Amazon, the online retail giant, their tax bill is quite small. In fact, according to recent reports, the company will be paying a whopping $0…