Tax Day Savings with the Working Families Tax Cuts

Tax Day is nearly here.  This tax season, the Working Families Tax Cuts are delivering for Nebraskans and putting more money in your pocket.  Recently, I’ve been travelling the state to share good news about this year’s tax returns.  Workers will keep more of their income.  Families will have more money to put toward groceries.  Farmers and ranchers will be able to grow and reinvest.  CBS News reports that the average tax refund will increase by about $1,000 per filer.  This tax season will be better for hard-working Nebraskans. The Working Families Tax Cuts invests in the next generation.  Senate Republicans expanded the child tax credit for nearly 250,000 Nebraska families.  This expansion will provide a $2,200 tax deduction for each child.  We increased the child and dependent care tax credit.  The maximum credit rate rose from 25% to 50%.  The dependent care assistance program was also increased.  This allows Nebraskans to exclude up to $7,500 of dependent care assistance expenses from their income.  That’s more money that Nebraska families can put toward groceries and everyday expenses. Senate Republicans are rewarding Nebraska seniors for a lifetime of hard work.  We created a $6,000 tax deduction for seniors.  It’s $12,000 for couples, which means 88% of American seniors won’t pay federal income taxes on their Social Security benefits.  That’s about 265,000 Nebraska seniors.  When I was Governor, we exempted state income taxes on Social Security.  Now, the Working Families Tax Cuts makes this tax relief available for all American seniors. Some jobs require workers to give a little more and require extra hours.  We’re providing tax cuts for families and incentives for businesses to invest in their workers.  Recently, I met with Nebraska restaurant owners and others in the hospitality industry at a luncheon in Omaha.  They all told me how the Working Families Tax Cuts will benefit their workers and help their small businesses. The Working Families Tax Cuts removes taxes on tips, up to $25,000 per year.  savings will bring meaningful relief for hard-working servers, bartenders, and workers.  Workers who depend on gratuities earn their tips.  Now, they can keep them.  The Working Families Tax Cuts also eliminates taxes on overtime pay, up to $12,500.  This supports all of the jobs that keep Nebraska safe and running. One restaurant manager told me of a waitress whose wages were incorrectly reported.  Her W-2 reported some overtime pay as regular pay.  When this was corrected, she received an extra $1,500 in her tax returns because of the no tax on overtime provision.  That’s more money to buy groceries and gas.  That’s a monthly house payment.  That’s meaningful. The Working Families Tax Cuts prevented a $2,443 tax increase on the average Nebraska family.  Instead of a tax hike, Senate Republicans cut the taxes of hardworking Nebraskans.  We made the doubled Standard Deduction permanent.  90% of taxpayers claim the standard deduction, including nearly 1 million Nebraskans.  For the first time ever, Nebraskans claiming the standard deduction can write off charitable giving. Nebraskans work hard.  This Tax Day, Nebraskans will have more money in their pockets. My team and I are here to serve you.  Contact us anytime by phone at 202-224-4224.  You can also view my website at http://www.ricketts.senate.gov/contact .