But how will the plan affect the income taxes of older Americans? People who have studied the new law—which goes into effect starting with the tax year—say that most of us will pay less in taxes in the next few years, thanks lower tax rates and higher standard deductions.
But the loss of some prized tax breaks and new caps on others like state and local taxes could result in higher tax bills in April for some older taxpayers, particularly those living in states with high tax rates. And over time, some of the benefits of the new tax bill will fade away; experts project that a majority of taxpayers will pay more within 10 years.
John, 67, and Susie, 63, who live in Madison, still have a mortgage on their home. Both are relatively healthy, and Medicare and her work insurance cover most of their medical bills. Robert and Susan, both 53, own and run a small business and file jointly.
Californians Julie and Nick are married and have two kids—a son in college and a daughter in high school. Louis retiree Donna, 75, lives alone in a condo she owns but has a second mortgage that she uses to pay for splurges and doctor bills. Raymond is a single man living in a condo he owns in Manhattan. Exclusive program for members from The Hartford.
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