Family Tax Cut – Who Will Get $2,000?

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":

1. There will be no credit unless the spouses' taxable incomes are in different brackets.
2. The greater the difference between the taxable income levels of the spouses, the greater the potential for the credit. 
3. To get the full $2,000 benefit, the spouses' income levels must be at least two brackets apart and the higher-income spouse must have taxable income of at least $72,525.

The table below shows the range of Family Tax Cut values for families based on the tax bracket of each spouse:

Family Tax Cut Ranges (based on Tax Brackets for each Spouse)

Use the following calculator to estimate the Family Tax Cut for any couple based on their 2014 Taxable Incomes.

2014 Family Tax Cut Calculator