Intuit, the maker of Quicken personal finance software and TurboTax software, has created a calculator that will help you estimate your savings under the new tax laws for the next 10 years.
Fill in the blanks at www.quicken.com/taxes/taxrelief/estimator/, and you will see just how much you can expect to save with the forthcoming changes in the tax laws.
Consider the following scenario:
- a married couple, both spouses are age 40
- with 1 child under age 17
- one spouse earns $50,000, the other earns $40,000
- no other taxable income
- each contributes $4,000 annually to a 401(k) plan
- $7,500 in deductible mortgage interest and charitable contributions
- $2,500 in other itemized deductions
Estimated savings under the new tax plan:
The calculator makes no adjustment for changes in income or deductions in future years, but if you want to do future projections, you can change the numbers after you get your first year projections and run the calculator again. Try it yourself and find out what kind of savings you can expect.