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titaniumsalute

(4,742 posts)
Fri Jan 26, 2018, 11:18 AM Jan 2018

I'm not an accountant but here's what I am doing regarding the new tax structure

Frankly I don't trust the administration and Congress with this new tax bill. They have told the IRS to create the new withholding structure which is to show people "Look you will have more money in your pockets monthly."

However, they have eliminated many deductions. So you go to file in 2019 (for the 2018 tax year) and all of the sudden you owe $1,000, $2,000, etc. where before you were breaking even or getting a few bucks back.

I decided, with the help and advice of my accountant, that I am adjusting my withholdings to be the same exact percentage as my 2017 tax year. That way I don't get caught with my pants down potentially in 2019 when filing. If I end up with a big tax return I can dial back the monthly tax withholdings.

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I'm not an accountant but here's what I am doing regarding the new tax structure (Original Post) titaniumsalute Jan 2018 OP
Probably not a bad idea. LuckyCharms Jan 2018 #1
That's a really good idea. hedda_foil Jan 2018 #2
I would increase contributions to a 401k Sherman A1 Jan 2018 #3
That's exactly what I'm doing Freddie Jan 2018 #4
I've had my exemptions set to 0 since I started working Scoopster Jan 2018 #5
I do the same thing. Never have to pay and usually get a great refund. Money in the bank, sorta... winstars Jan 2018 #8
I'm increasing my EST payments. Turbineguy Jan 2018 #6
I'm a freelancer so this is going to be really fun for me. Meeting with my accountant Neema Jan 2018 #7
Hope you'll report back. RandomAccess Jan 2018 #9
GOP seem to be encouraging people to under-withhold ThoughtCriminal Jan 2018 #10

LuckyCharms

(17,444 posts)
1. Probably not a bad idea.
Fri Jan 26, 2018, 11:20 AM
Jan 2018

I'm still trying to figure out why I am seeing a yearly increase in my paycheck of about $500, and also showing a decrease in my projected refund (my own spreadsheet) of $500. It's a cash wash out.

Sherman A1

(38,958 posts)
3. I would increase contributions to a 401k
Fri Jan 26, 2018, 11:35 AM
Jan 2018

with the "windfall" of new tables. Alternately put more into an IRA. It might not be a perfect solution, but I would keep as much money in my hands as possible.

Freddie

(9,267 posts)
4. That's exactly what I'm doing
Fri Jan 26, 2018, 11:36 AM
Jan 2018

I'm the payroll person here so I can adjust my own withholding easily, and I'm going to have DH do the same. It's quite possible they made the tax tables "generous" so people will thank Repugs in the midterms, only to have this come back and bite them in the ass when they file next spring.

Scoopster

(423 posts)
5. I've had my exemptions set to 0 since I started working
Fri Jan 26, 2018, 11:43 AM
Jan 2018

One of the tips Mom taught me. Your weekly paychecks are smaller, but you usually get a big refund. The only deduction I've been able to take was for student loan interest, but that wasn't much.

Neema

(1,151 posts)
7. I'm a freelancer so this is going to be really fun for me. Meeting with my accountant
Fri Jan 26, 2018, 12:01 PM
Jan 2018

next week to figure out what I can even deduct anymore.

ThoughtCriminal

(14,047 posts)
10. GOP seem to be encouraging people to under-withhold
Fri Jan 26, 2018, 04:01 PM
Jan 2018

I suspect a lot of people who think they are getting big tax cuts are going to be shocked in 2019 when they owe a lot.

But as long as enough voters are fooled for one more election cycle, they can rob us for two more years and stack the courts for a lifetime.


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