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einsteinboricua
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Tax law judgement time

Sat Jan 19, 2019 5:37 pm

The tax cuts law is now in effect for this year's tax returns.

Leaving aside any effects in the economy (or lack of) and your paycheck, how does this year's returns look to you?

I already entered my W-2 form. I ended up itemizing since the standard deduction was too low. Oddly enough, I received a bigger refund last year and I haven't adjusted my W-4 settings because I don't know how I should set them.

Pretty much, if I'm gonna grade it by its effect, I'd give it a C since I would expect to have more money returned absent any adjustments. I still get a decent return though but that's more due to the deductions (SALT, mortgage, etc.).

What say you?
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trpmb6
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Re: Tax law judgement time

Sat Jan 19, 2019 9:27 pm

einsteinboricua wrote:
The tax cuts law is now in effect for this year's tax returns.

Leaving aside any effects in the economy (or lack of) and your paycheck, how does this year's returns look to you?

I already entered my W-2 form. I ended up itemizing since the standard deduction was too low. Oddly enough, I received a bigger refund last year and I haven't adjusted my W-4 settings because I don't know how I should set them.

Pretty much, if I'm gonna grade it by its effect, I'd give it a C since I would expect to have more money returned absent any adjustments. I still get a decent return though but that's more due to the deductions (SALT, mortgage, etc.).

What say you?



Rather than comparing refunds you should compare your taxes owed numbers year over year. And compare that to your income year over year.

I won't have an idea on where I fell until probably mid february. I operate an Scorp so everything is a lot different than last year. We shall see where i ended up, but I suspect I will be better off.
 
Okie
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Re: Tax law judgement time

Sat Jan 19, 2019 10:13 pm

2018 tax payments were due Tuesday January 15th. :yuck:

Things are looking up but no Global 8000 to write off yet. :shakehead:

But I am a working on it. :bouncy:


Okie




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trpmb6
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Re: Tax law judgement time

Sat Jan 19, 2019 11:01 pm

Okie wrote:
2018 tax payments were due Tuesday January 15th. :yuck:

Things are looking up but no Global 8000 to write off yet. :shakehead:

But I am a working on it. :bouncy:


Okie




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Would love to have a jet to write off, but I dont think it would be a global. Might as well just get a BBJ at that point.

Anyways, yeah I have all my estimated tax payments in but we will see how that all falls out once I actually dig into it. Hopefully I got it right :)
 
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casinterest
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Re: Tax law judgement time

Wed Jan 23, 2019 4:33 pm

einsteinboricua wrote:
The tax cuts law is now in effect for this year's tax returns.

Leaving aside any effects in the economy (or lack of) and your paycheck, how does this year's returns look to you?

I already entered my W-2 form. I ended up itemizing since the standard deduction was too low. Oddly enough, I received a bigger refund last year and I haven't adjusted my W-4 settings because I don't know how I should set them.

Pretty much, if I'm gonna grade it by its effect, I'd give it a C since I would expect to have more money returned absent any adjustments. I still get a decent return though but that's more due to the deductions (SALT, mortgage, etc.).

What say you?


Still waiting on W-2.
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casinterest
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Re: Tax law judgement time

Thu Jan 31, 2019 3:36 pm

einsteinboricua wrote:
The tax cuts law is now in effect for this year's tax returns.

Leaving aside any effects in the economy (or lack of) and your paycheck, how does this year's returns look to you?

I already entered my W-2 form. I ended up itemizing since the standard deduction was too low. Oddly enough, I received a bigger refund last year and I haven't adjusted my W-4 settings because I don't know how I should set them.

Pretty much, if I'm gonna grade it by its effect, I'd give it a C since I would expect to have more money returned absent any adjustments. I still get a decent return though but that's more due to the deductions (SALT, mortgage, etc.).

What say you?



So I got everything done last night. Earliest return ever. My prediction from when the tax law went into effect came true. I got a refund due to over payment, but it was hard to predict with bonus issues and raise.

Here is my comparison with last year.

AGI went up 18K last year(most of that was the Mrs working full time,some was a nice raise for me)
Taxable income went up 30K :hissyfit: The loss of the personal exceptions hurts even with the higher standard deduction

This is offset by the lower tax rate and child deduction though
Even though Taxable Income went up by 30K,

My amount to pay in Federal taxes stayed the same as last year.
( I had to pay 9 dollars less this year in federal taxes).


It is easy for me to see that if the tax laws had stayed the same, I probably would have paid 4500-5000 more this year in taxes. So I won out on the tax law.

I had to take the standard deduction, couldn't itemize enough to clear it.

SALT limit and Mortgage interest limit were a close call for me, and I imagine they will smack some others that have expensive homes with modest incomes. Especially in areas with high state and local taxes.
Last edited by casinterest on Thu Jan 31, 2019 3:43 pm, edited 1 time in total.
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426Shadow
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Re: Tax law judgement time

Thu Jan 31, 2019 3:41 pm

I'm getting so much more back, that I didn't trust it. Almost 3 times more than last year.
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afcjets
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Re: Tax law judgement time

Thu Jan 31, 2019 3:52 pm

Wow, I didn’t realize how many people on a.net are in the top 1 percent and benefit from Trump’s tax plan for the super rich. :rotfl:
 
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trpmb6
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Re: Tax law judgement time

Thu Jan 31, 2019 3:57 pm

casinterest wrote:
Even though Taxable Income went up by 30K,

My amount to pay in Federal taxes stayed the same as last year.
( I had to pay 9 dollars less this year in federal taxes).


It is easy for me to see that if the tax laws had stayed the same, I probably would have paid 4500-5000 more this year in taxes. So I won out on the tax law.

I had to take the standard deduction, couldn't itemize enough to clear it.


I'm hoping that our two situations are fairly similar, i have a spouse who works, two children. Last year our AGI was about 30k less than what it will be this year. Being that I'm an independent contractor I have to estimate my taxes throughout the year, and this year I paid slightly less each month than I did last month in my estimated tax payments based on the large refund I received last year, projections that I would receive a larger refund by my CPA this year, and other factors.

TLDR; I anticipate that my refund will be less than what I received last year, despite income going up, but only because I reduced my estimated tax payments. In other words, I too expect my AGI to go up, but to not see a meaningful change in actual tax paid.

State taxes are a different matter. I'm almost certain, now, that I underpaid a bit. Part of this has been the changing of tax laws over the last couple of years, and my mistake in not increasing my estimated tax payments, but in large part due to the current fact that I will likely not have to itemize on federal, and state law requires you to file in the same manner as your federal return (If you don't itemize on federal you can't itemize on state). It's a stupid law and they are trying to pass a law this week to fix this and make it retroactive to 2018. If they do so, that should help me some.
 
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fr8mech
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Re: Tax law judgement time

Fri Feb 01, 2019 1:02 am

I'll tell you in April when I will finally decide that I've procrastinated long enough and start opening all these pesky envelopes that say "IMPORTANT TAX DOCUMENTS ENCLOSED".

Kidding aside (not really), my first paycheck of the year was bigger, even though I increased my HSA deduction and made a couple of post-tax deduction changes.
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casinterest
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Re: Tax law judgement time

Fri Feb 01, 2019 1:19 am

fr8mech wrote:
I'll tell you in April when I will finally decide that I've procrastinated long enough and start opening all these pesky envelopes that say "IMPORTANT TAX DOCUMENTS ENCLOSED".

Kidding aside (not really), my first paycheck of the year was bigger, even though I increased my HSA deduction and made a couple of post-tax deduction changes.


I finally decided to creep up my 401K a bit more. My site has a 1% increase per year in donations. I figure I will forget about it after awhile ::)


I put my taxes in on April 14 last year. I though I was going to have to pay. Surprise, I got a 2K back.
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apodino
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Re: Tax law judgement time

Fri Feb 01, 2019 4:04 am

I got over double back this year than I got last year. However, there were some things this year that helped.

I adopted a daughter so I claimed an extra dependent.
I got a $7500 tax credit for buying an electric car last year.

All things being equal...I would have easily gotten more back even without the above happening.
 
apodino
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Re: Tax law judgement time

Sun Feb 03, 2019 7:55 pm

I took a closer look at my taxes this year. My effective tax rate ended up being just over 1 Percent.
 
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DL717
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Re: Tax law judgement time

Sun Feb 03, 2019 8:26 pm

LOL. What’s a refund? Hope the “fair taxes” crowd enjoys the check I’ll be sending out tomorrow.
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Dieuwer
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Re: Tax law judgement time

Sun Feb 03, 2019 9:23 pm

Isn't the "Effective Tax Rate" the best way to compare tax years?
 
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fr8mech
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Re: Tax law judgement time

Mon Feb 04, 2019 12:29 am

Dieuwer wrote:
Isn't the "Effective Tax Rate" the best way to compare tax years?


Yes, it is, but you should discard any extraordinary credits or deductions, like buying an electric car, for comparison purposes.
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DL717
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Re: Tax law judgement time

Mon Feb 04, 2019 4:15 am

I already knew I was hosed this year. We built a house, sold the old one and the new mortgage was going to be too soft. Now we know what we need in additional withholding. As for the total amount we paid? Barf.
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Alias1024
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Re: Tax law judgement time

Mon Feb 04, 2019 4:45 am

Waiting on a couple 1099s still, but right now it’s looking like I’ll be sending the IRS about $2,100. Needless to say, our withholding was a little off under the new law.
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casinterest
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Re: Tax law judgement time

Thu Feb 07, 2019 1:05 pm

Government can shut down again. I have my refund.

Hopefully it won't
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trpmb6
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Re: Tax law judgement time

Sun Feb 10, 2019 10:27 pm

I just finished everything up. I owed Kansas quite a bit because of a mistake I made in my estimated payments due to changes in the tax laws that I forgot about. But that's no big deal.

On the federal we're getting about 4700 back. I didn't compare my taxes to 2017 because my income dropped off last year due to lack of contracts coming in etc. So I qualified for more deductions than I normally do due to reduced income. (for instance my dependent child care deductions were much higher that year than 2016 and 2018 - among other things.)

So I compared 2016 to 2018 because those two years were the closest in AGI. Filling jointly, both years the AGI was just under $200,000. From 2016 to 2018 income dropped 2.46%. From 2016 to 2018 taxes owed dropped 31.56% (Almost $10,000). Nearly everything is the same between those two years except that I had more qualified dependent care expenses in 2018 than 2016. My second child was born late in 2016 so i received the associated tax credits, but there was not much in the way of child care expenses that year so that wasn't a factor. That being said, that only accounts for 600 dollars in difference between 2018 and 2016.

So two things stand out to me that caused the largest change - the increase in child tax credit and being able to utilize the qualified business income deduction on the first 20% of S-Corp income. (The latter being the main heavy hitter)
 
ltbewr
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Re: Tax law judgement time

Sun Feb 10, 2019 11:38 pm

Many are seeing lower refund amounts or having to pay the IRS and state income tax agencies. Some also have higher interest, dividend or investment income, got raises, bonuses, delayed raises and the employer withholding were lower. Throw in the capping of SALT taxes, removal of individual deductions, higher standard overall deductions and it is creating some surprises that some will blame Trump for.
I will be doing, as usual, my taxes Presidents Holiday weekend with TurboTax for Fed, NY and NJ state and each have their own rules so not easy to do. I suspect I won't qualify for any medical or other deductions due to changes from last year. So long as among the Fed and 2 states I get a net refund, I'll be ok with it. Fortunately I don't need a big lump sum refund as financially in good shape with no debt.
 
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trpmb6
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Re: Tax law judgement time

Mon Feb 11, 2019 1:36 am

I'll never understand why people hope for a refund. I'd much rather pay a few dollars, or break even than receive a huge refund. It meant I screwed up throughout the year and I'm finally getting the money I should have had throughout the year back without interest. (By the way, you bet your arse they will charge you fines and interest if you underpay too much)
 
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WingsFan
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Re: Tax law judgement time

Mon Feb 11, 2019 4:40 am

einsteinboricua wrote:
The tax cuts law is now in effect for this year's tax returns.

Leaving aside any effects in the economy (or lack of) and your paycheck, how does this year's returns look to you?

I already entered my W-2 form. I ended up itemizing since the standard deduction was too low. Oddly enough, I received a bigger refund last year and I haven't adjusted my W-4 settings because I don't know how I should set them.

Pretty much, if I'm gonna grade it by its effect, I'd give it a C since I would expect to have more money returned absent any adjustments. I still get a decent return though but that's more due to the deductions (SALT, mortgage, etc.).

What say you?



Judging or comparing taxes by size of the refund is a wrong way of doing it, especially in a year when tax laws were changed along with employers changing withholding. For a fair comparison, sum up the total tax paid ( state plus fed ) and compare that with what you paid last year ( assuming your income hasn't changed dramatically).

In any case, ideal refund amount should be zero.
 
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cranberrysaus
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Re: Tax law judgement time

Mon Feb 11, 2019 4:53 am

Alias1024 wrote:
Waiting on a couple 1099s still, but right now it’s looking like I’ll be sending the IRS about $2,100. Needless to say, our withholding was a little off under the new law.


Ouch, did you get hit with an underpayment penalty?
 
KICT
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Re: Tax law judgement time

Mon Feb 11, 2019 7:43 am

DL717 wrote:
As for the total amount we paid? Barf.

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fr8mech
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Re: Tax law judgement time

Mon Feb 11, 2019 2:00 pm

cranberrysaus wrote:
Ouch, did you get hit with an underpayment penalty?


I’ve written a 5’ish thousand dollar check before without an underpayment penalty.

Of course, business and self-employed rules may be a little different.

WingsFan wrote:

Judging or comparing taxes by size of the refund is a wrong way of doing it, especially in a year when tax laws were changed along with employers changing withholding. For a fair comparison, sum up the total tax paid ( state plus fed ) and compare that with what you paid last year ( assuming your income hasn't changed dramatically).

In any case, ideal refund amount should be zero.


Using the effective tax rate is a better way to do it. Comparing nominal values may get you close, but effective tax rate is a more objective measure of comparison between years.

Barring some extraordinary event, I’m usually $500 on either side of zero, when it comes to my tax return.
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trpmb6
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Re: Tax law judgement time

Mon Feb 11, 2019 3:12 pm

fr8mech wrote:
Using the effective tax rate is a better way to do it. Comparing nominal values may get you close, but effective tax rate is a more objective measure of comparison between years.

Barring some extraordinary event, I’m usually $500 on either side of zero, when it comes to my tax return.


That's why I posted about my AGI % change and Taxes owed % change. That is the most accurate way to compare year to year.
 
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casinterest
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Re: Tax law judgement time

Mon Feb 11, 2019 3:46 pm

trpmb6 wrote:
I'll never understand why people hope for a refund. I'd much rather pay a few dollars, or break even than receive a huge refund. It meant I screwed up throughout the year and I'm finally getting the money I should have had throughout the year back without interest. (By the way, you bet your arse they will charge you fines and interest if you underpay too much)


Well, for some folks it is like enforced savings.
Currently some are expecting this lower refund rate to have an effect on the economy as the average refund is down 8.4% this year so far.

https://www.cnbc.com/2019/02/11/average ... -cuts.html

The average refund of $1,865 was 8.4 percent smaller than the average refund in the period last year.


Makes my refund look great:)
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trpmb6
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Re: Tax law judgement time

Mon Feb 11, 2019 3:57 pm

casinterest wrote:
trpmb6 wrote:
I'll never understand why people hope for a refund. I'd much rather pay a few dollars, or break even than receive a huge refund. It meant I screwed up throughout the year and I'm finally getting the money I should have had throughout the year back without interest. (By the way, you bet your arse they will charge you fines and interest if you underpay too much)


Well, for some folks it is like enforced savings.
Currently some are expecting this lower refund rate to have an effect on the economy as the average refund is down 8.4% this year so far.

https://www.cnbc.com/2019/02/11/average ... -cuts.html

The average refund of $1,865 was 8.4 percent smaller than the average refund in the period last year.


Makes my refund look great:)


Yeah. My refund is actually down year over year, but I made some calculations and adjusted my estimated tax payments downwards for the year. Which kind of goes back to that whole discussion that was going on last week. I wasn't exactly sure where my refund would end up (obviously I had a decent idea, but there's always a bit of unknowns up front at the beginning of the year), but I knew I would pay less in taxes year over year. I was a little surprised to get 4700 back because I had pegged the number a little closer to the 2000 mark.
 
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Dieuwer
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Re: Tax law judgement time

Mon Feb 11, 2019 4:21 pm

I still didn't get all the forms I need to finish doing my taxes...Jeez.
 
GalaxyFlyer
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Re: Tax law judgement time

Wed Feb 13, 2019 11:49 pm

Dieuwer wrote:
I still didn't get all the forms I need to finish doing my taxes...Jeez.


They should send a bill, this is what you owe for services provided.

GF
 
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trpmb6
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Re: Tax law judgement time

Tue Feb 19, 2019 5:45 pm

https://www.apnews.com/57ac6498374944f7bfb20660630c95f4

Reading the three stories provided (First under paid, Second broke even, third over paid) only makes me realize that the vast majority of Americans have no clue how much they pay in taxes each year. In each case it appears the parties paid less under this tax law than they would have previously. But in the case of the first one, they under paid to the tune of $10,000+ yet they still benefited from the law. The article painted their picture this way:

Their total tax was up slightly — by about $300 because of changes to their financial picture. Their effective tax rate was lower, but they still owed the government.


In other words, they made more money, but with a lower effective tax rate they only ended up with a total tax burden $300 more than last year. So what happened then? They didn't have their withholding set up correctly. I don't see how that is anyone's fault but their own. (Indeed, it appears they own up to that part in the article.)

In the second case the couple appears to have income via a side business that varies greatly, and they apparently have no idea how to follow the IRS guidance on making estimated tax payments. If they did they wouldn't receive a 15k refund each year.

I'm not trying to shame these folks. The tax code is complicated. But following IRS guidance is not difficult. And if your tax picture is so complicated that you have trouble figuring out where you should end up, it's really worth it to invest in a qualified CPA. I do, and I like to think I have a great handle on my tax situation. Hell, most years they pay for themselves in finding extra deductions I hadn't thought of. (happened this year!)
 
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casinterest
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Re: Tax law judgement time

Tue Feb 19, 2019 6:04 pm

trpmb6 wrote:
https://www.apnews.com/57ac6498374944f7bfb20660630c95f4

Reading the three stories provided (First under paid, Second broke even, third over paid) only makes me realize that the vast majority of Americans have no clue how much they pay in taxes each year. In each case it appears the parties paid less under this tax law than they would have previously. But in the case of the first one, they under paid to the tune of $10,000+ yet they still benefited from the law. The article painted their picture this way:

Their total tax was up slightly — by about $300 because of changes to their financial picture. Their effective tax rate was lower, but they still owed the government.


In other words, they made more money, but with a lower effective tax rate they only ended up with a total tax burden $300 more than last year. So what happened then? They didn't have their withholding set up correctly. I don't see how that is anyone's fault but their own. (Indeed, it appears they own up to that part in the article.)

In the second case the couple appears to have income via a side business that varies greatly, and they apparently have no idea how to follow the IRS guidance on making estimated tax payments. If they did they wouldn't receive a 15k refund each year.

I'm not trying to shame these folks. The tax code is complicated. But following IRS guidance is not difficult. And if your tax picture is so complicated that you have trouble figuring out where you should end up, it's really worth it to invest in a qualified CPA. I do, and I like to think I have a great handle on my tax situation. Hell, most years they pay for themselves in finding extra deductions I hadn't thought of. (happened this year!)


As discussed before I think a lot of folks are getting slammed by the inability to claim tax deductions that were previously there . SALT, Home Office, The reduction on the jumbo loan interest between 750K and 1 Million. Home Equity writeoffs.

There is going to be some pain for many folks that didn't pay attention and run the numbers on their writeoffs.



https://money.usnews.com/money/personal ... -this-year
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trpmb6
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Re: Tax law judgement time

Tue Feb 19, 2019 7:04 pm

casinterest wrote:
As discussed before I think a lot of folks are getting slammed by the inability to claim tax deductions that were previously there . SALT, Home Office, The reduction on the jumbo loan interest between 750K and 1 Million. Home Equity writeoffs.

There is going to be some pain for many folks that didn't pay attention and run the numbers on their writeoffs.



https://money.usnews.com/money/personal ... -this-year



Sure, and I'm not discounting that. But they are responsible for re-evaluating their withholding. Their tax liability, for all intents and purposes, went unchanged. Yet it was their mistake in not changing their withholding that led to them not having enough withheld due to the change in standard deduction.

To be clear, the couple in the first profile paid less in taxes than they would have under previous law. yet they still owed 10k to the IRS in the end. That's a serious mistake. I just don't know how you go all year long looking at your paychecks, and the money that's being taken out and say "hmm it seems like i'm getting paid a lot more than I should be, and the taxes being withheld are a lot less than it used to be.."

For the vast majority of people, they probably would have been fine not touching their W4. But if you were someone that previously utilized SALT and other itemized deductions, you should have adjusted your W4 or you're going to find yourself screwed over whenever you get around to filing.
 
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casinterest
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Re: Tax law judgement time

Tue Feb 19, 2019 7:12 pm

trpmb6 wrote:
casinterest wrote:
As discussed before I think a lot of folks are getting slammed by the inability to claim tax deductions that were previously there . SALT, Home Office, The reduction on the jumbo loan interest between 750K and 1 Million. Home Equity writeoffs.

There is going to be some pain for many folks that didn't pay attention and run the numbers on their writeoffs.



https://money.usnews.com/money/personal ... -this-year



Sure, and I'm not discounting that. But they are responsible for re-evaluating their withholding. Their tax liability, for all intents and purposes, went unchanged. Yet it was their mistake in not changing their withholding that led to them not having enough withheld due to the change in standard deduction.

To be clear, the couple in the first profile paid less in taxes than they would have under previous law. yet they still owed 10k to the IRS in the end. That's a serious mistake. I just don't know how you go all year long looking at your paychecks, and the money that's being taken out and say "hmm it seems like i'm getting paid a lot more than I should be, and the taxes being withheld are a lot less than it used to be.."

For the vast majority of people, they probably would have been fine not touching their W4. But if you were someone that previously utilized SALT and other itemized deductions, you should have adjusted your W4 or you're going to find yourself screwed over whenever you get around to filing.



It is a marketing problem, Everyone concentrated so much on the tax rates themselves without properly identifying the gotcha's. People's personal exceptions and deductions do not show up on a W-2. Especially one that was automated from HR.
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Tugger
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Re: Tax law judgement time

Tue Feb 19, 2019 7:46 pm

trpmb6 wrote:
But they are responsible for re-evaluating their withholding.

So, a question: Did you review the withholding for yourself?

I didn't, I had others check. And I don't think that most people that don't have tax attorneys or accountants as regular parts of their filing process do. Most people figure it out in just this way: "Whoa... I owe/am getting back how much? This is crazy, I need to change something!"

Taxes haven't really changed this much in a long time so people didn't have to change much other than when their income changed.

Tugg
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trpmb6
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Re: Tax law judgement time

Tue Feb 19, 2019 8:00 pm

Tugger wrote:
trpmb6 wrote:
But they are responsible for re-evaluating their withholding.

So, a question: Did you review the withholding for yourself?

I didn't, I had others check. And I don't think that most people that don't have tax attorneys or accountants as regular parts of their filing process do. Most people figure it out in just this way: "Whoa... I owe/am getting back how much? This is crazy, I need to change something!"

Taxes haven't really changed this much in a long time so people didn't have to change much other than when their income changed.

Tugg


As I've noted many times on this forum (and at least once in this thread) I am a self-employed contractor so i make estimated tax payments. I had a pretty good idea what my tax outlook would be a couple days after they passed the law. That being said, there was still uncertainty (as I note in my first post on this thread). And yes I did adjust what I was sending in each month (reduced it somewhat). I also reviewed what my wife had her withholding set to as well. Fortunately for us, we don't live in a high tax state and the only itemizing we used to do wasn't far off from what the standard deduction got us to (itemizing was marginally better each year). So our delta was minimal and thus no changes to her withholding was ultimately necessary.

Again, I'm not discounting what you guys are saying. But the IRS did warn everyone to do a paycheck checkup.
 
GalaxyFlyer
Posts: 2605
Joined: Fri Jan 01, 2016 4:44 am

Re: Tax law judgement time

Tue Feb 19, 2019 10:15 pm

Use the IRS W-4 calculator and it accounts for just about everything, no excuse not having withholding within $500 of your tax.

GF
 
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casinterest
Posts: 8065
Joined: Sat Feb 12, 2005 5:30 am

Re: Tax law judgement time

Wed Feb 20, 2019 2:00 am

GalaxyFlyer wrote:
Use the IRS W-4 calculator and it accounts for just about everything, no excuse not having withholding within $500 of your tax.

GF


People are creatures of habit. They don't always evaluate how the world around them has changed, and continue to do things like they always have.
Where ever you go, there you are.
 
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Dieuwer
Posts: 1059
Joined: Tue Dec 26, 2017 6:27 pm

Re: Tax law judgement time

Sun Mar 03, 2019 2:20 am

Dieuwer wrote:
I still didn't get all the forms I need to finish doing my taxes...Jeez.


Preliminarily finished my taxes today. Let's define effective tax rate as: Taxes / AGI x 100%.
For 2017 this was: 20.0%. For 2018 it is: 17.4%. So it seems I got ahead. HOWEVER,... my Massachusetts tax bill "inexplicably" went up by about $1000 (WTF??), which partially negates the federal "win".
 
GalaxyFlyer
Posts: 2605
Joined: Fri Jan 01, 2016 4:44 am

Re: Tax law judgement time

Sun Mar 03, 2019 3:43 am

Did your MA AGI go up because your Federal AGI is greater?


gf
 
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Dieuwer
Posts: 1059
Joined: Tue Dec 26, 2017 6:27 pm

Re: Tax law judgement time

Sun Mar 03, 2019 4:56 am

GalaxyFlyer wrote:
Did your MA AGI go up because your Federal AGI is greater?


gf


MA slapped a “12% Income Tax” on part of my “Income”.
 
bagoldex
Posts: 1027
Joined: Thu Jan 25, 2007 3:33 pm

Re: Tax law judgement time

Sun Mar 03, 2019 6:49 am

Dieuwer wrote:
GalaxyFlyer wrote:
Did your MA AGI go up because your Federal AGI is greater?


gf


MA slapped a “12% Income Tax” on part of my “Income”.


Yes, they just slapped a random 12% tax on a portion of your income for no reason. It's called the short term capital gains tax.
 
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Dieuwer
Posts: 1059
Joined: Tue Dec 26, 2017 6:27 pm

Re: Tax law judgement time

Sun Mar 03, 2019 5:21 pm

bagoldex wrote:
Dieuwer wrote:
GalaxyFlyer wrote:
Did your MA AGI go up because your Federal AGI is greater?


gf


MA slapped a “12% Income Tax” on part of my “Income”.


Yes, they just slapped a random 12% tax on a portion of your income for no reason. It's called the short term capital gains tax.


Yes, I found that out just now.
 
GalaxyFlyer
Posts: 2605
Joined: Fri Jan 01, 2016 4:44 am

Re: Tax law judgement time

Sun Mar 03, 2019 8:59 pm

Well, there you go, you rich capitalist tool, it should be 70%! /snark

GF
 
bagoldex
Posts: 1027
Joined: Thu Jan 25, 2007 3:33 pm

Re: Tax law judgement time

Sun Mar 03, 2019 9:26 pm

GalaxyFlyer wrote:
Well, there you go, you rich capitalist tool, it should be 70%! /snark

GF


I'm actually in favor of reducing capital gains taxes and eliminating them entirely for those falling below a certain earned income threshold. The snark was based on his lack of understanding of his own finances and basic tax policy.
 
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Dieuwer
Posts: 1059
Joined: Tue Dec 26, 2017 6:27 pm

Re: Tax law judgement time

Sun Mar 03, 2019 10:56 pm

bagoldex wrote:
GalaxyFlyer wrote:
Well, there you go, you rich capitalist tool, it should be 70%! /snark

GF


I'm actually in favor of reducing capital gains taxes and eliminating them entirely for those falling below a certain earned income threshold. The snark was based on his lack of understanding of his own finances and basic tax policy.


More like HR Block software telling me that part of my "Income" was liable for a "12% Income Tax". They LITERALLY write in the Quick Summary:

5.1% Income...
12% Income...

If HR Block simply had stated that "Short Term Capital Gains at 12%" in the overview, I would not have been confused.
 
GalaxyFlyer
Posts: 2605
Joined: Fri Jan 01, 2016 4:44 am

Re: Tax law judgement time

Mon Mar 04, 2019 1:39 am

bagoldex wrote:
GalaxyFlyer wrote:
Well, there you go, you rich capitalist tool, it should be 70%! /snark

GF


I'm actually in favor of reducing capital gains taxes and eliminating them entirely for those falling below a certain earned income threshold. The snark was based on his lack of understanding of his own finances and basic tax policy.


I understand basic tax policy, I’m resident in the state and did my own taxes here
, without benefit of software, and in the adjoining financial black hole for 13 years. Left-wingers love taxes until they get taxed.

I would agree with you on capital gains taxes and the rate is zero below around 60,000 USD of taxable income.


Gf
 
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GSPFlyer
Posts: 297
Joined: Thu Jul 15, 2010 3:15 am

Re: Tax law judgement time

Mon Mar 04, 2019 4:06 am

My effective tax rate dropped from 10.13% to 7.79% (federal only) or 14.18% to 11.42% (federal+state), despite making ~$1,500 more.
 
flyguy89
Posts: 2498
Joined: Tue Feb 24, 2009 6:43 pm

Re: Tax law judgement time

Mon Mar 04, 2019 4:07 am

Just filed last week. Had a slight bump in take-home pay for all of 2018 from the rate changes and a slightly larger refund this year...so just slightly ahead of 2017 for me.

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