COLORADO SPRINGS, Colo. - We all get them, and they're not cheap...taxes. As the new GOP tax plan unfolds, we want to breakdown what that means to the average person in Colorado Springs.
The short answer is - it will mean more savings. Here's why:
The city's average household income is slightly over $60,000. Which means the tax rate for these households will go down from 15 to 12 percent.
Tom Baltuskonis, with Jackson-Hewitt Tax Services, says these households will save a little more than $600.00 a year.
"The bill changes the number of tax brackets from 7 to 4, so therefore they're larger, so the average person in Colorado Springs would fall into 12 percent," he said. "Where they would get the tax break."
Baltuskonis also pointed out the standard deductions is going up, so more people will not be itemizing their deductions, they'll be using standard deductions. This will make the tax return easier to file.
But keep in mind -- the final bill is expected to change.
"It will be different than the one that is proposed right now," he said.
So don't spend the money you think you're going to get, until you file your tax return.