Senator Ricketts’ Weekly Column: Tax Season Benefits, Thanks to the Working Families Tax Cuts

It’s officially tax season.  Most Americans hate filling out their taxes.  But I’ve got good news. Nebraskans are likely to see more money in their pockets this year.  That’s because of the Working Families Tax Cuts.

Here are a few ways you might see a bigger tax return this year:

CBS News reports that the average tax refund will increase by about $1,000 per filer.  That means more money for your groceries, toward a house, or for your savings.

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.

Nebraskans no longer have to pay federal income taxes on their tips.  The first $25,000 of tips each year are tax free.  Similarly, we eliminated federal income taxes on overtime—$12,500 of overtime pay is tax free.

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 also get a write-off for charitable giving.  Nebraskans are charitable, giving people.  This will help us continue to support our favorite charities.

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.  We increased the maximum credit rate 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 also rewarding Nebraska seniors for a lifetime of hard work.  We created a $6,000 tax deduction for seniors.  When I was governor, I signed into a law an elimination of state income taxes on Social Security.  The Working Families Tax Cuts takes this proven Nebraska solution and makes tax relief available for all American seniors.  Now, about 265,000 Nebraska seniors won’t have to pay federal income taxes on their Social Security benefits.

Senate Republicans also permanently raised the death tax exemption.  On a recent Tele-Town Hall, a constituent called in worried about the back-and-forth on death taxes in recent years.  She wanted to make sure that her children and grandchildren could live on the family land and run their operations.  I was happy to share that the Death Tax exemption is now permanent and will increase with future inflation.  In Nebraska, over 80% of farms are family owned.  They should stay that way.

These changes make it easier for Nebraska businesses to reinvest in their operations and pass them on to the next generation.  This helps everyone, from farmers and ranchers to manufacturers and restaurant owners.  Even decades down the road, Nebraskans’ hard work can now be passed on to the next generation.

Nebraskans work hard.  This tax season, Nebraskans will have more money in their pockets.  They deserve it.  The Working Families Tax Cuts delivers for Nebraska.

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.