2018 Tax Reform Experiences

I've been hearing news stories about reduced Federal tax returns this year and I'd like to discuss anecdotal 2018 Tax Reform experiences. A change in tax return from 2017 to 2018 isn't a useful measure of the effects of the 2018 Tax Reform on an individual. The tax return only represents whether too much or too little was withheld from your pay during the year. I can understand why an unexpectedly low tax return may be disappointing but what matters is Total Tax from the 1040 Instructions 2018 Tax Table. The change in Total Tax indicates whether you owe the government more or less than the previous year regardless of how much you actually paid during the year.

Definitions:
AGI- Adjusted Gross Income
Deductions- the amount that AGI is reduced by
Taxable Income- the amount that Total Tax is based on
Total Tax- the amount owed from the 2018 Tax Table
Credits- the amount that Total Tax is reduced by

I live in California and these are the changes I experienced from 2017 to 2018:
$2,112.00 AGI
-$1,320.00 Deductions
$3,432.00 Taxable Income
-$591.00 Total Tax
$0.00 Credits

What this means:
AGI- my income increased in 2018
Deductions- I wasn't able to deduct as much
Taxable Income- I moved higher on the 2018 Tax Table
Total Tax- I owe less for 2018
Credits- I had no credits in either year

In case of any confusion, this is the formula:
2018 AGI minus 2017 AGI
2018 Deductions minus 2017 Deductions
2018 Taxable Income minus 2017 Taxable Income
2018 Total Tax minus 2017 Total Tax
2018 Credits minus 2017 Credits

Conclusion:
2018 Tax Reform benefited me

Feel free to modify the format for more unusual tax situations.

via International Skeptics Forum http://bit.ly/2SCAaXe