How do Maria De Lima (Case Study I) and Carlos W. Masaryk (Case Study II) Fare?
The case studies are found both on my website http://www.1040nror1040.com and in my book, “1040NR? or 1040? U.S. Income Tax Returns for Visa Holders + International Organization and Foreign Embassy Employees” https://www.amazon.com/1040NR-1040-Income-Returns-Holders/dp/1986498603/ref=sr_1_1?s=books&ie=UTF8&qid=1535673889&sr=1-1&keywords=Jean+Mammen
The bottom line of each case study has Maria and Carlos coming out slightly better in 2018 than in 2017. The loss of the personal exemption and the small amount of itemized deductions that Carlos could no longer take were slightly outweighed by the lowering of the applicable tax bracket from 15% to 12%.
Case Study I – Maria De Lima
2017 2018
Wages on W-2 $ 39,560 $ 39,560
AGI $ 39,560 $ 39,560
Itemized Deductions $ 1,400 $ 1,400
Exemptions $ 4,050 0
Taxable Income $ 34,110 $ 38,160
Tax $ 4,653 $ 4,389
Case Study II – Carlos W. Masaryk
2017 2018
Wages on 1042-S $ 42,400 $ 42,400
Treaty Exclusion $ 5,000 $ 5,000
AGI $ 37,400 $ 37,400
Itemized Deductions $ 3,532 $ 3,000
Exemptions $ 4,050 $ 0
Tax $ 4,008 $ 3,938