A new tax bill will temporarily expand the standard tax deduction of up to $4,000 for eligible working families.
New Tax Bill Will Temporarily Boost Standard Deduction of Eligible Working Families for the Next Years
The new tax bill called Tax Cuts for Working Families Act aims to temporarily expand the standard deduction of eligible working families of up to $4,000 for the next years.
According to Yahoo Finance, the new tax bill will eventually result in billions of tax cuts for eligible working families, who will receive tax relief to help them meet their basic needs amidst the increasing inflation rate in different parts of the country.
However, despite the expansion of the standard deduction on the tax of eligible working families, low-income taxpayers who needed relief the most will reportedly not see any tax cut.
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Eligible Working Families Will Receive Up To $4,000 Tax Deduction Following New Tax Bill
Under the new tax bill, single filers earning $200,000 will receive a $2,000 standard deduction, while married couple filers with income of $400,000 will expect a $4,000 standard deduction, expected to double in the next few years.
With the new tax bill that will give standard deduction to working families, other low-income families also hoped for tax relief allocated for them as the cost of living gets higher and it gets harder to keep up every day.