Last updated: January 27 2015
There's a lot of hype out there about the Family Tax Cut and some families have the impression that they are entitled to a $2,000 windfall this tax season. In reality, most families will qualify for little or nothing from the Family Tax Cut.
If the family qualifies (two "spouses" living together at the end of 2014 with a child ordinarily living with them who is under 18, and no other disqualifications), the amount of the Family Tax Cut will depend on a number of factors. Here are a few "rules of thumb":
The table below shows the range of Family Tax Cut values for families based on the tax bracket of each spouse:
Spouse 1 ➜
Spouse 2 ⬇
|
Bracket 1 (15%)
Under $43,953
|
Bracket 2 (22%)
$43,954 to $87,907
|
Bracket 3 (26%)
$87,908 to $136,270
|
Bracket 4 (29%)
Over $136,270
|
Bracket 1 (15%)
Under $43,953
|
$0
|
$0 to $2,000
|
$0 to $2,000
|
$1,758 to $2,000
|
Bracket 2 (22%)
$43,954 to $87,907
|
$0 to $2,000
|
$0
|
$0 to $1,758
|
$0 to $2,000
|
Bracket 3 (26%)
$87,908 to $136,270
|
$0 to $2,000
|
$0 to $1,758
|
$0
|
$0 to $1,451
|
Bracket 4 (29%)
Over $136,270
|
$1,758 to $2,000
|
$0 to $2,000
|
$0 to $1,451
|
$0
|
Use the following calculator to estimate the Family Tax Cut for any couple based on their 2014 Taxable Incomes.