Millions are people are out-of-work, furloughed, or have had their hours reduced. One of the first payments that often goes when times are tough is the mortgage or rent payment. It is generally a person’s largest bill (representing 25-50% of many people’s budgets) and not making that large payment can be seen as a way to continue purchasing things that are necessary right then (such as food and utilities).

If you, or a client you are working with, is struggling there is some relief in the CARES Act.

As is always the case in situations like this, TALK WITH YOUR LANDLORD OR MORTGAGE SERVICER ahead of time. Let them know what is going on. There are programs and policies in place, not just with the CARES Act, but in many states, cities, and companies. Chances are there is a program in place to help, but your best bet is to contact them before the payment is due.

Let’s take a look at both rent/eviction and mortgages/foreclosure and what provisions are in the CARES Act for each.

RENT/EVICTION

It is estimated that 1/3 of Americans did not pay rent or only paid partial rent in April. Under the CARES Act tenants cannot be evicted for non-payment of rent if their landlord has a federally-backed mortgage (which would include, among others HUD, VA, USDA, Fannie Mae, Freddie Mac, and public housing).

This moratorium on evictions last for 120 days starting on March 27, 2020. After that the tenant needs to be given 30 days notice before they can be evicted.

It is important to note that this is not free money or free rent – the rent is still due, and the tenant can be evicted after the moratorium is over. Also this provision only applies to non-payment of rent – eviction can continue for other reasons such as violating the terms of the lease or damage to the property.

No additional fees, penalties, or other charges can be added beyond the rent payment.

It is important to remember the effect this is having on landlords as well. For most landlords rentals are their livelihood and they are concerned about the implications of the economic shutdown on their business and on their tenants.

In addition to the CARES Act provisions, many states have passed laws temporarily banning evictions. Columbia Law School and other lawyers have put together a database that outlines eviction orders in place in all 50 states.

How do you know if your landlord has a federally-baked mortgage? The only way to find out for sure is to ask them. If the landlord is not forthcoming about information or they illegally start the eviction process (officially or unofficially) you may need to talk with a lawyer.

If you are a landlord it is possible to qualify for an Economic Injury Disaster Loan through the Small Business Administration. As of April 20 the program was out of money, but there is talk in DC about Stimulus 3.5 which would appropriate more money to the program. When (or if) a deal is reached, this article will be updated.

Landlords may also qualify for mortgage forbearance (described below) under the CARES Act.

MORTGAGES/FORECLOSURE

If you can pay your mortgage, pay your mortgage. If you cannot pay your mortgage, reach out to your servicer as soon as possible.

Under the CARES Act there is a moratorium on foreclosures for federally-backed mortgages, which includes U.S. Department of Housing and Urban Development (HUD), USDA, FHA, VA, Fannie Mae, and Freddie Mac loans.

Fannie Mae and Freddie Mac hold about half the mortgage loans in the US. You can ask your servicer who backs your loan.

Under the CARES Act lenders cannot begin or finalize a foreclosure for 60 days starting March 18.

If a borrower cannot make their payment there is a forbearance provision available, which will pause or reduce payments. The borrower does not need to provide any documentation other than a statement that they need to take advantage of the forbearance.

The initial forbearance lasts for 180 days, with a 180 day extension available if needed.

During the forbearance only scheduled interest can accrue, and the loan has to be reported as current to the credit bureaus.

To take advantage of this borrowers need to contact their loan servicer. They should also discuss a plan for making up the payments in the future. For most borrowers that will mean re-casting their payments to the end of the loan term. Borrowers should avoid sending in partial payments unless their lender agrees to apply those payments to the balance and not end the forbearance.

On either a rental or mortgage deal you should get all provisions of the deal in writing.

NOTE: Updated April 16, 2020 as a result of new information available.

As a result of the CARES Act, which became law on March 27, 2020, most Americans will receive stimulus checks.

Single taxpayers will get $1,200; married taxpayers will get $2,400; and for each child under the age of 17 parents will get $500.

Of course, there are some stipulations.

• College students who are claimed as dependents on their parents tax return will not get a check.
• College students who live on their own and are NOT claimed as dependents will get a check.
• Even though the checks are being sent now, they are treated like a tax refund for 2020. More on this provision below.
• Money will be direct deposited based on most recent filing direct deposit number, or mailed to the most recent address the IRS has on file.
• You must have a Social Security Number to qualify, not a Taxpayer Identification Number (TIN).
• There are income phase-outs. More information below.

Direct deposit started to go out April 11, and checks will start near the end of April. It is estimated that the checks could take until September to all be sent.

If you are not required to file and you do not want to wait for a check, you can fill out a form on the IRS website to give them direct deposit information. You can also check on the status of your check on the IRS Get My Payment page.

Income-Phase Outs

Single filers who earn between $75,000 – $99,000 will get a reduced amount. For every $100 earned over $75,000 their check will be reduced by $5. Here are some numbers for :

Payments will be increased by $500 multiplied by the number of children in the home.

Examples:

• A married couple earns $125,000 and has 4 children ages 18, 15, 7, and 4. This couple will get:
  • $2,400
  • $500 x 3 (one child does not qualify because they are too old): $1,500
  • Total: $3,900
  • NOTE: The 18-year old is most likely claimed as a dependent on the couple’s tax return, which means that neither the child nor the parents get a check.
• A single filer earns $40,000 and has one child. He or she will get:
  • $1,200
  • $500
  • Total: $1,700

Tax Return for 2020

The money will be paid out based on 2019 taxes, or if 2019 taxes have not been filed yet, on 2018 taxes. This will have an adverse effect on taxpayers who earned high incomes in 2018 or 2019, but are no longer earning as much because they have been laid off or had hours reduced due to the Coronavirus shutdown. Let’s say that a single taxpayer earned $85,000 in 2019. They will get a check for $700 now. If they lost their job in 2020 and earned $40,000 in 2020, they will get the other $500 when they file their 2020 taxes (which will be due April of 2021).

There are also going to be many children that will be born during 2020, but the parents will not get the $500 until they will their 2020 taxes.

What about the taxpayer who qualifies now for a larger check, but they have a child that turns 17 in 2020, or they get divorced, or they are earning more in 2020? They will get to keep the extra amount and not have to pay it back when they file their 2020 taxes.

Here’s an example:

Martha has one child, Missy, who turned 17 on January 1, 2020. Martha will get a check for $1,200 for herself and $500 for Missy, for a total of $1,700. Technically she should only get $1,200 since Missy turned 17 on January 1. Martha will not have to pay the $500 back when she files her 2020 taxes.

Debt Collection Issues

If you owe back taxes or student loans you will still get a check. If you owe back child support you will not get a check.

A big concern is for the 1/3 of Americans that are in collections for credit card, medical, or private student loan debts. The law does not shield the payments from private debt collectors. While I am strongly in favor of paying off your debts, this is not the time to be taking the stimulus money from those who are most in need of it. 25 state attorneys general have sent a letter to Secretary Mnuchin asking for the money to be protected from seizure, but no action has been taken by the Treasury department yet. Individual states can also protect the checks, but only a few have taken that step so far.

The National Consumer Law Center has recommended the checks be protected, and are recommending those who are at risk to move the money out of the account as soon as it arrives, or create a new account at a small bank or credit union, or wait to get a paper check and cash it. If you are at risk of having your check seized, read the National Consumer Law Center article.

Do you have any questions about the stimulus checks? If so, post them below.

This post will be updated as more information becomes available.

Due to the economic shutdown from the Coronavirus many Americans have been laid off, furloughed, or had their hours cut dramatically.

Typically between 200,000 – 300,000 new people file for unemployment benefits each week, while a record-breaking 3.2 million filed for benefits with the week ending March 21, and that number will continue to go up as more and more companies are laying off or furloughing employees.

The passage of the CARES Act is opening up unemployment benefits for more people, increasing the length time they can get unemployment, and increasing the amount they can get each week.

Who qualifies for unemployment benefits?

The CARES Act makes more people eligible for unemployment, including self-employed, gig workers (such as Uber or Lyft drivers), part-time employees, independent contractors, freelancers, and others. In many cases even workers who have had their hours cut, but they are not totally unemployed, will qualify for partial benefits.

Career One Stop, which is an unemployment site sponsored by the U.S. Department of Labor, states that under the new law, states can pay benefits where, “An employer temporarily ceases operations due to COVID-19, preventing employees from coming to work; An individual is quarantined with the expectation of returning to work after the quarantine is over; and An individual leaves employment due to a risk of exposure or infection or to care for a family member. In addition, federal law does not require an employee to quit in order to receive benefits due to the impact of COVID-19.”

How much can I get in unemployment benefits?

The benefit level is determined by the state, with the lowest being Mississippi at $235 per week, and the highest being Illinois at $1,495 per week, with most states paying between $300-$500 per week.

Most states have a similar calculation – they take the worker’s highest earning quarter over the last year and divide that by 26, capped at a maximum amount. For example, if a worker earned $12,000 in their highest quarter they would get $461 per week ($12,000/26 = $461). If their state caps benefits at $420, they would get $420 per week.

Under the CARES Act all those who are unemployed will get an additional $600 per week, which will last up to four months through July 31. In the previous example where an unemployed person was receiving $420 per week they will now get $1,020 per week.

How long can I get unemployment benefits for?

Each state provides benefits for different lengths of time, but the average (before the CARES Act) was 26. Some states, such as Florida and North Carolina, only provided benefits for 12 weeks, while Massachusetts provided benefits for 30 weeks. The CARES Act extends unemployment benefits by an additional 13 weeks (making the maximum length in most states 39 weeks). The extended benefits will last through December 31, 2020.

The CARES Act also eliminates the one-week waiting period, which means you can get a check starting on the first week instead of the second week.

How do I apply for benefits?

Each state has a different process to apply. You can learn about unemployment benefits here and find a list of state offices here.

Looking for a job

While many employers have had to lay off employees, others are hiring part and full-time workers, including Amazon, Costco, CVS, pizza chains, Dollar General, Walmart and more. USA Today has an article that links to many of the major employer’s websites who are hiring. Be sure to check in your local community and state as well. Many communities have Facebook pages where employers looking for help post the job.

Small business forgivable loans

If you own a small business (from one employee up to 500 employees) you can apply for a loan through the Small Business Administration, and, if certain stipulations are met, that loan can be forgivable. The loans can be used to pay payroll, payroll expenses (such as health insurance), interest on mortgage loans, rent, and a few other expenses. Small business owners can learn more and apply for a loan here.

This article will be updated as more information becomes available.

NOTE: This article will be updated as new guidelines or laws are passed about economic support during the Coronavirus pandemic.

NOTE: Updated 3/27/2020 due to the passage of the CARES Act.

I had to pick up some things at my office recently and as I walked the halls, generally full of students heading to classes, studying, eating, and just hanging out, I was struck by the quietness. I walked by the empty food court and locked computer labs. This is a familiar scene all over the world right now – businesses closed and many people working from home. Unfortunately, this is not the case for many workers. If their workplace is closed, they are not working from home. They are simply not getting paid.

If you are facing the loss of income because of the Coronavirus you are not alone. CNN reported that half of American workers are at risk of layoffs, furloughs, fewer hours or wage cuts, with about 20% of all jobs in America at high-risk.

Employees in the transportation, travel and tourism, hospitality, temporary help, and restaurant workers are going to be the hardest hit. While many employees are able to work from home, workers in these industries generally do not have that option. After all, if no one is getting their hair cut, or staying in hotels, or flying, or eating in restaurants, these service workers don’t have a job.

What should you do if you find yourself in a situation where your paycheck is affected?

Emotional support

If you are in this situation you are likely feeling a lot of emotions. Overwhelmed, panic, anger, sadness, and hopeless are the terms I most often hear. Allow yourself to feel those emotions, but if they start to become overwhelming reach out to someone for help. Don’t go through this alone – talk to a therapist, a religious leader, or a friend. If you or a loved one is having suicidal thoughts, contact the National Suicide Prevention Lifeline at 1-800-273-8255.

Assess where you are now

Take some time and start to make a list of resources that you have available, including food, medicine, and other supplies. Do you have friends or family that you could stay with if needed? Do you know how to make low-cost meals? What about intangible resources such as a skill you could use to make some additional money?

The list below will have many additional resources that you may be able to utilize.

File for unemployment

The CARES Act expands unemployment insurance for four months and increases the benefit amount by $600 per week. It also eliminates the one-week waiting period, and it includes many workers who typically may not qualify, such as furloughed employees, freelancers, and gig economy workers.

It can take some time to work through the unemployment process, so if you are in this situation get your request in right away. You can find information about unemployment benefits here with a list of state offices here.

Temporary work

While many employers have had to lay off employees, others are hiring part and full-time workers, including Amazon, Costco, CVS, pizza chains, Dollar General, Walmart and more. USA Today has an article that links to many of the employer’s websites who are hiring.

Tax return

While the deadline to file taxes has been moved to July 15, if you are expecting a refund get your taxes filed right away. If you owe money you may want to consider waiting to file. If you need help filing your tax return, there are some Volunteer Income Tax Assistance sites open (they are all practicing social distancing and limiting the number of people that can come in) or you can use IRS Free File. Information about both resources can be found here.

Student loan payments

Student loan payments are automatically suspended until September 30, 2020, and no interest will accrue during that time. Only certain loan qualify. More information about student loans can be found in my article Changes to Student Loans During the Coronavirus Pandemic.

Mortgage or rent payment

The CARES Act allows borrowers with loans owned by Fannie Mae, Freddie Mac, FHA, VA, and RHS to suspend payments for 180 days, with a second 180 day extension available. During that time only regularly scheduled interest can accrue.

The CARES Act places a moratorium on certain eviction as well.

More information to follow about this topic.

Refinance

If your credit is good and your mortgage rate is at about 3.75% or above, contact several mortgage lenders to see if you can qualify for a lower rate with minimal out-of-pocket costs. If you have some equity in your home you may even be able to take some cash out to pay off some debt. Rates vary from day-to-day (or in some cases, hour-to-hour), but it is likely worth your time to contact some lenders. In addition, if you do refinance, you generally skip a payment in the process.

Utilities

While there are no specific federal guidelines regarding payment or shut-off of utilities, many states and companies have agreed to a moratorium on phone and utility terminations. Companies include Ameren, Dominion Energy, PG&E, Xcel Energy and many others. Contact your service providers if you are having trouble making your payments.

Food Stamps or SNAP

If you need help with food, file for Food Stamps, or SNAP (Supplemental Nutrition Assistance Program) right away. The CARES Act provided additional money to the SNAP program to ensure the program can provide for those who need Food Stamps. You can find information here.

Government checks

Under the CARES Act many individuals and families will be getting checks. Individuals will receive $1,200 checks, married couples will receive $2,400, and families will receive $500 checks for each child under the age of 17. These amounts are phased-out for individuals who earn between $75,000 – $99,000, while married couples will be phased-out for those who earn between $150,000 – $198,000.

As an example, a family with a married couple and two children who earn $75,000 per year will get $3,400.

Income phase-outs will be determined by 2019 tax returns if they are filed, and 2018 taxes if not. If you do not file taxes there will be alternate methods to determine how to get checks.

While these checks will be helpful for many in making some payments or stimulating the economy, the IRS is saying it will likely take until at least May to get checks out.

I would urge consumers to consider using these checks to 1. get caught up on bills; 2. pay off debt; 3. establish an emergency fund; and 4. build up your food supply.

Plan for the future

As this pandemic passes and the economy starts to return to normal I would encourage you to start to make preparations for the future. We may or may not face something like this again, but many of us will face periods of economic uncertainty.

It makes sense for everyone to do a few things to prepare:

• Get high interest debt paid off.
• Build up an emergency fund with 3-6 months worth of expenses.
• Build up a supply of food and other supplies you will actually use (dry beans, canned goods, etc.). Don’t panic buy – but build this up over time.

Conclusion

Hopefully this article has given you some resources/support that you can utilize to help you or a loved one get through this crisis.

If you have questions or comments, let’s start a conversation in the comments below.

I will update this article as more updates are released.

Since 2007 money has topped the list of sources of stress for Americans, with almost two-thirds reporting that money caused them very significant or somewhat significant stress.

Money is also the leading cause of stress in relationships, with 70% of married couples arguing about money. According to research arguments about money are by far the top predictor of divorce, and fights around money take longer to recover from than any other type of argument.

Reading all of that might make everything seem hopeless. After all, don’t all married couples fight about money? No! My wife and I have been married for almost 20 years and we have never had a fight about money. We had a lot to learn about money together, but we have never fought about money.

In addition, I have been counseling individuals and couples about money for close to 20 years and have learned a lot about what works and what doesn’t work. Through personal experience, counseling experience, and research, I have discovered many things that financially healthy couples do with money.

Here are my top ten tips for couples:

1. Find a financial counselor that can help you walk through everything. A trained financial counselor understands the financial side of money and the emotional side of money. I strongly suggest couples work with an Accredited Financial Counselor, which can be found at http://afcpe.org/find-an-afc. If you are not married yet, see a Financial Counselor as part of your pre-marital counseling.

2. Meet as a couple on a regular basis and discuss (discuss – not fight) your budget, goals, dreams, and creative solutions to your financial challenges.

3. Each partner in the couple should take the online Money Habitudes assessment. This tool will help you understand your money habits and attitudes, and will give you important tools and knowledge to discuss with each other and your financial counselor. You can learn more here: https://online.moneyhabitudes.com/

4. Set financial goals together and work towards achieving those goals.

5. Make sure each partner has money they can spend on whatever they want.

6. Set some money aside for each partner to be able to grow and develop their talents. For example, if your spouse wants to learn to play tennis, they could sign up for lessons. If you want to learn how to cook healthy meals, you could take a class. Even better, see if there is a class you both would enjoy.

7. Spend money on experiences, not things.

8. Be sure there is absolutely NO financial infidelity in your marriage (financial lies). Few things will destroy trust in a marriage faster than lying about money.

9. Review both partners credit reports on a regular basis (at least once a year).

10. Learn about money together – listen to podcasts and read books together. A few suggestions for podcasts include Stacking Benjamins, You Need a Budget, The Ric Edelman Show, and Money Tree Investing. A few books I recommend are You Need a Budget, The Difference, and How Rich People Think.

What other tips do you have for making money work in your marriage or relationship? Please share in the comments below or on Facebook at https://www.facebook.com/RyanHLawBlog/

Sources:

American Psychological Association (2017, November 1). APA Stress in America survey. Retrieved from http://www.apa.org/news/press/releases/2017/11/lowest-point.aspx

Jacques, S. (2013, July 12). Researcher find correlation between financial arguments, decreased relationship satisfaction. Retrieved from https://www.k-state.edu/media/newsreleases/jul13/predictingdivorce71113.html

MagnifyMoney (2017, February 13). 21% of divorcees cite money as the cause of their divorce, MagnifyMoney survey shows. Retrieved from https://www.magnifymoney.com/blog/featured/money-causes-21-percent-divorces925885150/

Money (2014, June 1). Poll: How husbands and wives really feel about their finances. Retrieved from http://time.com/money/2800576/love-money-by-the-numbers/.

Vincent, S., (2015, February 4). Love and money: People say they save, partner spends, according to SunTrust survey. Retrieved from http://investors.suntrust.com/news/news-details/2015/Love-and-Money-People-Say-They-Save-Partner-Spends-According-to-SunTrust-Survey/default.aspx

You can now freeze your credit (which is the number one step you can take to protect your identity) for free.

A credit freeze is the single most important step you can take to protect yourself from identity theft. It literally locks your credit bureau files so NO ONE, including you, will be approved for new credit. A thief could have your information and they will apply rapidly for credit, all of which will be denied, which will make them move on.

After the massive Equifax data breach last year (https://ryanhlaw.com/equifax-data-breach/) a new federal law allows all consumers to freeze their credit for free.

Which makes sense, if you think about it. Equifax essentially said, “we’re sorry your data got stolen because we were negligent, you can protect yourself by putting a credit freeze on your report and paying us $5-$10.” Thankfully Congress didn’t like that, and they passed a law that made it free.

Let’s keep it simple – here are the websites:

• Equifax: https://www.equifax.com/personal/credit-report-services/
• Experian: https://www.experian.com/freeze/center.html
• TransUnion: https://www.transunion.com/credit-freeze

You’ll need your Social Security number, two years of address history, and some other basic personal information. You will be asked some questions about information in your credit file.

Take ten minutes and freeze your credit right now. Freeze your spouse’s and children’s credit as well.

Good job, Congress, for doing the right thing and making this important service free.

I don’t know how they did it. The House passed a terrible tax bill. The Senate passed one that was almost as bad. To reconcile the two bills a House and Senate Conference Committee was created. I had extremely low expectations. What they came out with was the revised Tax Cuts & Jobs Act (TCJA), and it is, quite frankly, a great bill for almost everyone.

If you want to read the full bill, you can do so here: http://www.cnn.com/2017/12/15/politics/text-read-tax-plan-republicans/index.html?iid=EL

Before I jump into the highlights, I want to make a few important points:

• As of this writing, it is not a law yet, so no changes have actually been made. It will likely become law before the end of the year, though, but current tax laws will be in place for your 2017 return that you will be working on in a few months.
• I am not a CPA or tax attorney, so nothing in this article should be construed as tax advice. This article is for informational purposes only. For information about your own taxes you should consult a tax professional.
• Page numbers refer to the page in the bill where you can find the information.

Let’s run through some highlights for individuals and families:

• Reduces all but two tax brackets (page 12):
  

  Current Law	10%	15%	25%	28%	33%	35%	39.6%
  TCJA	10%	12%	22%	24%	32%	35%	37%

• Increases the standard deduction to $12,000 for singles and $24,000 for married filing joint (MFJ) (page 17):
  • With the increase in the standard deduction, personal exemptions are going away. Under current law you get a personal exemption of $4,050 per individual (which would lower your taxable income).
• If you choose to itemize, you can still deduct sales, income and property taxes up to $10,000 (page 81).
• If you choose to itemize you can still deduct mortgage interest for home values up to $750,000 (page 78).
  • Deductions for the interest on a home equity lines of credit, however, will no longer be deductible.
• Increases the Child Tax Credit to $2,000 per child, with $1,400 of that being refundable for most taxpayers (page 43).
• College savings plans (529 plans) may now be used for elementary, secondary, homeschool and higher education (page 63).
• Qualified moving expenses are no longer deductible unless you are part of the Armed Forces (pages 102, 110).
• Alimony is no longer deductible to the payor (page 100).
• Eliminates most personal casualty and theft losses from itemized deductions (page 81).
• Because taxes will be easier to file for many (most will take the standard deduction) you can no longer deduct the cost of paying someone to prepare your taxes (page 99).
• Simplifies the rules for the Alternative Minimum Tax and essentially doubles the amount you can pass to your heirs income tax-free (Estate or Death Tax).
• If you have a pass-through business (S corp, LLC, Partnership, or Sole Proprietorship) all gains made in the business currently pass through to your individual tax form where you pay taxes on the gain as though it were income. Under the TCJA you can reduce the amount that flows through by 20% (1). For example, if you have a home-based business and you make $20,000, only $16,000 of that will flow through to your personal taxes. Because of this and other tax-friendly portions of the law, the National Federation of Independent Business, who initially opposed the House and Senate bills, is in full support of the revised bill and is encouraging both Chambers to pass the bill quickly (2).
• The tax rate for corporations is reduced from 35% to 21%.

There are several provisions which were in either the House or Senate bill that did not make it into the final bill. These include:

• Modification of the exclusion of the gain or sale of a principal residence (Sec 121 of the tax bill):
  • Currently if you live in your home for 2 out of the last 5 years you can exclude the gain up to $250K (single) or $500K (MFJ).
  • Both the House and Senate planned to increase this to 5 out of the last 8 years.
  • The joint bill contains no provision for this, so it will stay at 2 out of 5 years (page 109).
• Qualified tuition reduction for graduate students continues to be excluded from income (page 68).
• Up to $5,250 of employer provided education assistance continues to be excluded from income (page 70).
• The Adoption Assistance Credit is retained (page 112).
• Continues to allow taxpayers to deduct student loan interest and tuition and fees, and the American Opportunity Credit is retained.

It is important to note that all individual provisions expire after 2025. The plan is that the next President and Congress will extend these provisions for all individuals and families. It is a bit of a gamble, but it is the only way, under current rules, to pass the bill with a simple majority.

What you probably want to know is, what will this bill do to your taxes? People much smarter than me in taxation will figure that out, but in the meantime, there are several calculators you can use to estimate your tax burden. Again, this is an estimate, not a guarantee. I used two calculators to run several scenarios:

• To run scenarios under the current tax law: https://www.moneyhelpcenter.com/taxes/calculate/2017-federal-income-tax-calculator/#results
• To run scenarios under the TCJA: https://www.calcxml.com/calculators/trump-tax-reform-calculator?skn=#results

Here is what I found for five scenarios. I ran all with the standard deduction (3):

Scenario 1: Married Filing Jointly (MFJ) with four children; $85,000 in ordinary income.

• Current tax liability: $2,288
• TCJA tax liability: $0
• Savings of $2,288 under TCJA

Scenario 2: MFJ with 2 children; $75,000 in ordinary income; $200 in investment income.

• Current: $3,982
• TCJA: $1,739
• Savings: $2,243

Scenario 3: Single; $75,000 income; $200 investment income.

• Current: $11,889
• TCJA: $9,800
• Savings: $2,089

Scenario 4: Single, $55,000 ordinary income; $20,000 home-business income; $200 investment income.

• Current: $11,889
• TCJA: $8,920
• Savings: $2,969

Scenario 5: MFJ with 5 children, $100,000 ordinary income; $20,000 home-business income; $200 investment income.

• Current: $6,715
• TCJA: $2,119
• Savings: $4,596

As more information is released I will continue to update this article and post updates on my Facebook page at https://www.facebook.com/RyanHLawBlog/.

(1)  This provision is eliminated for higher-income individuals and certain service businesses.

(2) https://www.nfib.com/content/press-release/national/small-business-supports-conference-tax-bill/

(3) These calculators get updated as more information becomes available. If you run these same scenarios at a different times you might get slightly different results. If the numbers change dramatically I will update the article. The numbers are correct as on December 17, 2017.