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Drahthaardogs

(6,843 posts)
Sun Jan 27, 2019, 09:52 AM Jan 2019

Just did my taxes...there is going to be a lot of pissed people

Based on advice from a friend of mine who works for KPMG, I took out extra withholding every pay period. Had I not, I would have owed money.

The "tax break" most people got was really just less withholding taken out. SURPRISE!

Donny the Crook lies again.

I don't know how it will work out for most, but for me, no real break.

98 replies = new reply since forum marked as read
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Just did my taxes...there is going to be a lot of pissed people (Original Post) Drahthaardogs Jan 2019 OP
Also, many of us will be losing a boatload of deductions. I know I am going to owe thousands. Squinch Jan 2019 #1
I did! Drahthaardogs Jan 2019 #3
Yeah. And my sister lives in a co-op. Her property taxes and building mortgage are Squinch Jan 2019 #7
Didn't know about that exboyfil Jan 2019 #9
And very pinpointed to urban coastal areas where that is a common kind of home-buying structure. Squinch Jan 2019 #14
"Urban coastal areas"....that tend to be in blue states? regnaD kciN Jan 2019 #78
The $10,000 SALT Limit Does NOT Include Mortgage Interest Indykatie Jan 2019 #66
I didn't say it did. They are 2 different things. But there is also a cap on the mortgage interest Squinch Jan 2019 #69
NJ is a donor state. It loses $31 Billion a year to bail out other states, more than NJ's budget. TheBlackAdder Jan 2019 #74
We pay for the red states' roads, so we HAVE to levy high state taxes so we can have roads too! Squinch Jan 2019 #79
This is why I'd like to see a Transfer Payment Equalization Act. roamer65 Jan 2019 #93
I just read this article and WOW! Drahthaardogs Jan 2019 #90
Someone posted here a while back who had IRS Laura PourMeADrink Jan 2019 #96
"Tee hee. Tuff nuts, suckers." - Dirty Donny* & KGOP republican cronies Achilleaze Jan 2019 #2
Winning on taxes! Zambero Jan 2019 #62
That's the cruel narcissist pattern -- they need Hortensis Jan 2019 #71
Good analysis Achilleaze Jan 2019 #72
Tried to do our taxes Maeve Jan 2019 #4
Yes, I've done mine but can't file until TrishaJ Jan 2019 #50
Maybe the people who do that were furloughed. llmart Jan 2019 #67
Check the IRS website to see if the form has been updated nitpicker Jan 2019 #98
Gangsters, robbers, liars, thieves. GOP! lindysalsagal Jan 2019 #5
That'd be a great title when they start making movies about this administration NotASurfer Jan 2019 #18
Every damn one connected, even remotely connected to tRump in orange jumpsuits a kennedy Jan 2019 #19
No steak, no Big Mac, NotASurfer Jan 2019 #48
Straight up Nutriloaf for those fuckers, day-in, day-out ... (nt) mr_lebowski Jan 2019 #49
I LOVE your cat gif. Haggis for Breakfast Jan 2019 #91
Yup - I got rid of my exemptions and took more out for withholding jpak Jan 2019 #6
I increased my quarterly estimate payments Turbineguy Jan 2019 #8
My return increased FreeJoe Jan 2019 #10
Husband does taxes for H&R Block. The season really just livetohike Jan 2019 #11
I am going to do better exboyfil Jan 2019 #12
The deficit increase is a big deal to me FreeJoe Jan 2019 #43
I think this board is very Pollyanna about exboyfil Jan 2019 #47
Well, at least one Dem running for President wants to tax the wealthy at 70%. llmart Jan 2019 #68
The proposal won't even eliminate deficit, much less begin reducing debt. Hoyt Jan 2019 #80
Please - note that the tax would not start until $50 million and only the amount above that karynnj Jan 2019 #82
I don't mind taxing the shit out of the rich, but I do worry about what she wants to spend it on jmowreader Jan 2019 #84
Meh, it's all just based on your situation... cbdo2007 Jan 2019 #13
I will also owe money this year because of losingnthebpersonal exemption. Lonestarblue Jan 2019 #15
I don't know how I will make out. My income is pension and S.S. 3Hotdogs Jan 2019 #16
We are a GM retiree family KentuckyWoman Jan 2019 #17
I don't think you will get hosed. It is un-earned income and taxed at around 20% at most. 3Hotdogs Jan 2019 #20
traditional IRA withdrawals are taxed at the ordinary tax rate, not the lower cap gains / qualified progree Jan 2019 #21
The good news is that unemployment, SS, and medicare are not deducted. 3Hotdogs Jan 2019 #25
?? They were never deducted before. But SS and unemployment benefits are taxed .... progree Jan 2019 #30
They are deducted when you work for a salary. 3Hotdogs Jan 2019 #32
They are deducted from your paycheck. But not on taxes progree Jan 2019 #36
" I don't know how I will make out." mitch96 Jan 2019 #64
The standard deduction is now $12000 TexasBushwhacker Jan 2019 #81
Still wondering how joewicker_TX Jan 2019 #22
Are you an independent contractor? StatGirl Jan 2019 #63
How do you do "extra withholding" nycbos Jan 2019 #23
either by reducing the number of "dependents" or just fill out the deduction form (W-2?) to include 3Hotdogs Jan 2019 #27
I don't have any dependents at all so I put 0 nycbos Jan 2019 #33
There is a line on the form where you can add additional Drahthaardogs Jan 2019 #52
Change your W-4 for extra withholding jpak Jan 2019 #44
I did that, would get $3-4K back every year. The IRS got pissed and locked my W-4 from changes. TheBlackAdder Jan 2019 #73
Why would the IRS be pissed ... KelleyKramer Jan 2019 #97
I'm worse off because my itemized deductions exceed both the old and the new progree Jan 2019 #24
They tried to hide the fact that the personal deduction was eliminated, which really hurts... George II Jan 2019 #28
The "tax cut" is a big shell game, just like Reagan's big "tax cut" in the 1980s. George II Jan 2019 #26
Does the doubling of the child tax credit make up for that ? MichMan Jan 2019 #34
Probably not - the credit is "up to" $2,000 - it could be lower depending upon other factors.... George II Jan 2019 #38
A $4050 exemption is equivalent to a $891 credit in the 22% tax bracket progree Jan 2019 #45
More people running from the liar trump and the gop , and this will only increase the numbers. duforsure Jan 2019 #29
I did the same Hangdog Slim Jan 2019 #31
Our property taxes are $9,725 (Texas) and we are both retired and have zero income. flying_wahini Jan 2019 #35
That is why replacing state income taxes with property taxes isn't always good MichMan Jan 2019 #39
For the procrastinators among us: CrispyQ Jan 2019 #37
For middle income and low income folks... safeinOhio Jan 2019 #40
I retired in 2010, watoos Jan 2019 #41
I'm in PA and retiring soon Freddie Jan 2019 #53
I haven'r done mine yet, but I'm ready to pay up. nt Kahuna7 Jan 2019 #42
I have friends who didn't adjust withholdings and will get much lower refunds than they expected wishstar Jan 2019 #46
The problem is that too many people are ignorant about taxes MichMan Jan 2019 #54
A friend who is a CPA told me the same thing a few months ago. guillaumeb Jan 2019 #51
I'm getting a nice refund Freddie Jan 2019 #55
This is exactly what I am talking about Drahthaardogs Jan 2019 #56
We did too thank goodness. redstatebluegirl Jan 2019 #57
You could have increased your witholding by an additional $50 per week over what you owe MichMan Jan 2019 #59
I never let them have my money. redstatebluegirl Jan 2019 #60
I usually get money back...does that mean I'll get less money back? nt UniteFightBack Jan 2019 #58
THIS is why Eddie Munster..... dawnie51 Jan 2019 #61
"Heh, heh. Screwed the taxpayers again." - Eddie M. (R) Achilleaze Jan 2019 #70
You mean I'm not going to get my $4,000? ooky Jan 2019 #65
Divide that by 10, and you will be closer. StTimofEdenRoc Jan 2019 #77
I came out ahead, mainly due to the upped stand deduction Amishman Jan 2019 #75
Just for the fun of it, put last years income into this years software. StTimofEdenRoc Jan 2019 #76
I always shot for about an $1100 refund - enough for a bit of mad money in the spring The Polack MSgt Jan 2019 #83
Call it a wake-up call to the MAGAts jmowreader Jan 2019 #85
I'm getting less back this year shanti Jan 2019 #86
We owe taxes for the very first time... helpisontheway Jan 2019 #87
This message was self-deleted by its author roamer65 Jan 2019 #94
What did people expect? D_Master81 Jan 2019 #88
My son also had to adjust his withholding Gothmog Jan 2019 #89
Anyone who used to itemize from NY or CA? roamer65 Jan 2019 #92
The tax changes are very beneficial to single income, standard deduction w/no children. roamer65 Jan 2019 #95

Squinch

(50,774 posts)
1. Also, many of us will be losing a boatload of deductions. I know I am going to owe thousands.
Sun Jan 27, 2019, 09:56 AM
Jan 2019

AND on top of all that, people were told they would be getting $5500 more of a standard deduction. NO ONE was saying that they would LOSE their personal exemption, worth $4100. So the real "break" is $1400.

I, for example, will pay for that $1400 increase in standard deduction by losing about $10,000 in other deductions, on which I will pay my regular rate.

People are going to be very, very pissed.

Squinch

(50,774 posts)
7. Yeah. And my sister lives in a co-op. Her property taxes and building mortgage are
Sun Jan 27, 2019, 10:05 AM
Jan 2019

a share of that of the whole building. She still can't find out if the whole building's limit is 10K (and her building pays many times that in property taxes) or if each resident's limit is 10K on both the property tax and mortgage deduction. If it is the building's limit, everyone is going to be screwed. And co-ops are very common around here.

Squinch

(50,774 posts)
14. And very pinpointed to urban coastal areas where that is a common kind of home-buying structure.
Sun Jan 27, 2019, 10:18 AM
Jan 2019

Indykatie

(3,691 posts)
66. The $10,000 SALT Limit Does NOT Include Mortgage Interest
Sun Jan 27, 2019, 03:23 PM
Jan 2019

I've seen many comments online from folks that think the SALT cap applies to mortgage interest which is wrong. But even without the inclusion of mortgage interest many people with higher incomes will still be screwed who don't live in states with very high state and property taxes like CA, NJ and NY. I live in Indiana a state with modest taxes but the total of my State, Local County, and property taxes on my home will exceed $10,000. Not by much but I can imagine folks in states with taxes higher than Indiana will be hit harder. I don't know if its unusual for States to have both a state and local county tax.

Squinch

(50,774 posts)
69. I didn't say it did. They are 2 different things. But there is also a cap on the mortgage interest
Sun Jan 27, 2019, 03:52 PM
Jan 2019

deduction. You can only deduct the interest on 750K of debt. For a co-op building, the building's mortgage can be many, many times that. The shareholders collectively hold the debt and apportion the tax deduction on the mortgage interest among themselves. So do they lose all that deduction on their share of the total? No one seems to know.

I live in the New York. Property taxes of 10K or less are unheard of. They are much, much higher. Which was the point. All these measures were intended to hurt urban coastal people.

TheBlackAdder

(28,076 posts)
74. NJ is a donor state. It loses $31 Billion a year to bail out other states, more than NJ's budget.
Sun Jan 27, 2019, 05:12 PM
Jan 2019

.

The same applies to California and New York State, though to less of a degree in billions.

Imaging having that many billions sucked from your local economy, each and every year for decades.

You'd have high taxes, since little is allowed to be spent in the state.

.

roamer65

(36,739 posts)
93. This is why I'd like to see a Transfer Payment Equalization Act.
Mon Jan 28, 2019, 12:09 AM
Jan 2019

NJ should get back every dime it sends to DC. Let states like KY increase THEIR state taxes to pay for THEIR roads.

Drahthaardogs

(6,843 posts)
90. I just read this article and WOW!
Sun Jan 27, 2019, 11:50 PM
Jan 2019
https://www.nytimes.com/2019/01/27/us/politics/tax-refund-code-shutdown.html

Eight million more Americans will OWE or have smaller refunds BUT $62 billion more in tax refunds this year.

I wonder where that money is going???? ( That's sarcasm, I think we all know WHO is getting $62 billion).
 

Laura PourMeADrink

(42,770 posts)
96. Someone posted here a while back who had IRS
Mon Jan 28, 2019, 01:02 AM
Jan 2019

Friends. Said they did not change the withholding tables. So, when average people do their taxes (at a lower rate) their refunds would be higher. Like they tricked them into raving about refunds in April

Achilleaze

(15,543 posts)
2. "Tee hee. Tuff nuts, suckers." - Dirty Donny* & KGOP republican cronies
Sun Jan 27, 2019, 09:57 AM
Jan 2019
* republican Draft-dodger-in-Chief

Zambero

(8,954 posts)
62. Winning on taxes!
Sun Jan 27, 2019, 02:09 PM
Jan 2019

Too bad it's not the guy who finds himself getting trickled on. This analogy will be occurring millions of times over.

Hortensis

(58,785 posts)
71. That's the cruel narcissist pattern -- they need
Sun Jan 27, 2019, 04:43 PM
Jan 2019

admiration, but when they get people roped in they use their power over them to hurt them -- proof of their superiority. The Repubs would have done the tax heist with another president, but I've often wondered if a big part of his motivation was the enjoyment of screwing millions because he could, very much including his trumpsters.

Trump liked to talk at rallies about "his" Supreme Court case that would make requiring insurance companies to cover preexisting conditions, at all or without charging through the nose for them, unconstitutional. People would cheer less certainly, and then he'd pump enthusiasm back up again with the usual wall, Hillary, whatever. Always wondered just what he was enjoying in those exercises, because he could.



Reportedly hear he's very afraid of losing support these days, though. Is he afraid of tax season?

Maeve

(42,224 posts)
4. Tried to do our taxes
Sun Jan 27, 2019, 10:00 AM
Jan 2019

Both of us are sole-proprietors and the H&R Block software informs us we can't file until the IRS updates a specific form. (I knew we'd owe money, but still figuring out how much)
Frustrating. Thanks, tRump, you turd.

TrishaJ

(797 posts)
50. Yes, I've done mine but can't file until
Sun Jan 27, 2019, 01:37 PM
Jan 2019

a specific form is updated. I don't understand why the form has not already been updated and ready at the end of 2018.

NotASurfer

(2,138 posts)
18. That'd be a great title when they start making movies about this administration
Sun Jan 27, 2019, 12:11 PM
Jan 2019

Gangsters, Robbers, Liars, Thieves

First, we need an ending...

a kennedy

(29,467 posts)
19. Every damn one connected, even remotely connected to tRump in orange jumpsuits
Sun Jan 27, 2019, 12:14 PM
Jan 2019

and in jail, not the posh Federal prisons, the hard core prisons where they can see all the other criminals up close.

NotASurfer

(2,138 posts)
48. No steak, no Big Mac,
Sun Jan 27, 2019, 01:11 PM
Jan 2019

no Filet o'Fish, and no KFC. Nothing to clog their arteries and shorten the time of their life sentences by a few years!

Haggis for Breakfast

(6,831 posts)
91. I LOVE your cat gif.
Sun Jan 27, 2019, 11:55 PM
Jan 2019

And the "Proof the earth isn't flat." I saw a t-shirt the other day that read, "If the Earth was flat, cats would have pushed everything off of it by now."

jpak

(41,742 posts)
6. Yup - I got rid of my exemptions and took more out for withholding
Sun Jan 27, 2019, 10:03 AM
Jan 2019

The "surprised" MAGAts can pound sand.

Turbineguy

(37,212 posts)
8. I increased my quarterly estimate payments
Sun Jan 27, 2019, 10:06 AM
Jan 2019

as soon as the tax reduction went into effect. I expect I'll be glad I did.

FreeJoe

(1,039 posts)
10. My return increased
Sun Jan 27, 2019, 10:14 AM
Jan 2019

I didn't get hit by the AMT this year. I got to take a child tax credit that I couldn't in the past. My rates dropped. I don't have high SALT taxes, so the cap on those didn't hurt. My income was lower last year. The net effect of everything was that my return went up a few thousand dollars. I haven't done the comparison to see the change in my effective tax rate.

livetohike

(22,084 posts)
11. Husband does taxes for H&R Block. The season really just
Sun Jan 27, 2019, 10:14 AM
Jan 2019

got started, but so far his clients are seeing about the same refunds as last year. He said the people who will see a bigger refund don’t come to H&R Block. They’re much wealthier than the clients he sees in our rural area.

exboyfil

(17,857 posts)
12. I am going to do better
Sun Jan 27, 2019, 10:14 AM
Jan 2019

My GOP leaning coworker asked me why I was so mad about Trump. I told him given the deficit that I did not expect to do better. I also told him it allowed me to send money to other Senate and House races (I normally never do that). I think he knows who I sent the money to.

He was also surprised that 2/3rds of my bonus was taxed at 12%. I told him that happens when you only have one person working in your family. He makes what I do as a mid-level engineer. His wife makes more as a real estate agent and appraiser.

FreeJoe

(1,039 posts)
43. The deficit increase is a big deal to me
Sun Jan 27, 2019, 01:01 PM
Jan 2019

I point out to my Republican co-workers that it wasn't really a tax cut. It was a tax deferral. We still have to pay that debt sometime. They just opted to dump the tax burden on our children. How very patriotic of them.

exboyfil

(17,857 posts)
47. I think this board is very Pollyanna about
Sun Jan 27, 2019, 01:10 PM
Jan 2019

the deficit as well.

I would prefer to see Democratic candidates talk about how they plan to pay for those things we have already committed to paying. I understand though that is not how you get elected. Additional taxes are a part of it. Also smarter spending of the money is also important. Boondoggles exist on both sides of the aisle.

llmart

(15,501 posts)
68. Well, at least one Dem running for President wants to tax the wealthy at 70%.
Sun Jan 27, 2019, 03:30 PM
Jan 2019

We could pay for the deficit quite well if we'd just tax the wealthy, corporations and churches.

 

Hoyt

(54,770 posts)
80. The proposal won't even eliminate deficit, much less begin reducing debt.
Sun Jan 27, 2019, 05:42 PM
Jan 2019

The poster above is exactly right, someone needs to be honest with taxpayers about Debt.

Of course, the first one who says even some in middle class are going to have to pay more to solve the problem, they’ll be the first to be removed from consideration. The debt really is a “you can’t handle the truth” issue. Obama tried to discuss it, but got crucified by even Democrats.

karynnj

(59,475 posts)
82. Please - note that the tax would not start until $50 million and only the amount above that
Sun Jan 27, 2019, 06:11 PM
Jan 2019

would be taxed. I agree that it would be a huge help and the economists behind her plan include people like Krugman. If she ends up the nominee, it will be good if everyone is careful when speaking of marginal rates on either income or wealth. The idea is to have money the government needs and to reduce income inequality which has skyrocketed since the 1970s.

jmowreader

(50,453 posts)
84. I don't mind taxing the shit out of the rich, but I do worry about what she wants to spend it on
Sun Jan 27, 2019, 06:48 PM
Jan 2019

IIRC the 70 percent rate (which is being promulgated largely by Alexandria Ocasio-Cortez, who last I checked wasn't running for president) was earmarked for the "Green New Deal." It needs to go 100 percent toward deficit reduction - not elimination, we need about $100 billion worth of deficit to keep the Republicans from going nutzo - and retirement of public debt rather than some new program.

cbdo2007

(9,213 posts)
13. Meh, it's all just based on your situation...
Sun Jan 27, 2019, 10:15 AM
Jan 2019

Mine turned out way better this year and my struggling family will pay $0 taxes and get all of my withholding back, thanks to the new standard deduction and then doubling the child tax credit.

Lonestarblue

(9,880 posts)
15. I will also owe money this year because of losingnthebpersonal exemption.
Sun Jan 27, 2019, 11:53 AM
Jan 2019

Because of high property taxes and a mortgage, I will still itemize but the loss of the old personal deduction will result in higher taxes. Of course, I never expected anything else because Republicans are always good at hiding the real results of the tax laws they pass.

3Hotdogs

(12,210 posts)
16. I don't know how I will make out. My income is pension and S.S.
Sun Jan 27, 2019, 11:59 AM
Jan 2019

I have no deductions. Mortgage is paid off. Health is good and I have no co-pay because of pension health care.

KentuckyWoman

(6,666 posts)
17. We are a GM retiree family
Sun Jan 27, 2019, 12:09 PM
Jan 2019

We are both old enough for social security and he has the pension. We are both old enough to be forced to take a certain amount out of the NON Roth IRAs that were opened before Roth was avail. It is enough to pay taxes on SS. I expect to get hosed.

3Hotdogs

(12,210 posts)
20. I don't think you will get hosed. It is un-earned income and taxed at around 20% at most.
Sun Jan 27, 2019, 12:15 PM
Jan 2019

Mine is taxed at 13%

progree

(10,864 posts)
21. traditional IRA withdrawals are taxed at the ordinary tax rate, not the lower cap gains / qualified
Sun Jan 27, 2019, 12:22 PM
Jan 2019

dividends rate. It is taxed the same as earned income.

progree

(10,864 posts)
30. ?? They were never deducted before. But SS and unemployment benefits are taxed ....
Sun Jan 27, 2019, 12:32 PM
Jan 2019

Unemployment was and is an addition to regular income.

Social Security income is taxed above certain thresholds. In my case, 85% of my SS benefits are being taxed as ordinary income.

progree

(10,864 posts)
36. They are deducted from your paycheck. But not on taxes
Sun Jan 27, 2019, 12:38 PM
Jan 2019

E.g. if you earn $80,000 salary, your paycheck is reduced by the SS (6.2%) and Medicare (1.45%) for a total of 7.65%, leaving you with a $80,000 * (100%-7.65%) = $73,880 paycheck.

But you declare your income on your taxes to be $80,000. So there's no deduction for tax purposes.

In other words, the worst case scenario -- smaller paycheck, but taxes on the full salary amount.

mitch96

(13,821 posts)
64. " I don't know how I will make out."
Sun Jan 27, 2019, 03:09 PM
Jan 2019

Same here, fixed income.. House almost paid off, no medical deduction (thanks god). I intentionally did not change anything from last year to see what the difference would be..
m

TexasBushwhacker

(20,044 posts)
81. The standard deduction is now $12000
Sun Jan 27, 2019, 05:44 PM
Jan 2019

It used to be $6350 plus a personal exemption of $4050 for a total of $10400.

joewicker_TX

(73 posts)
22. Still wondering how
Sun Jan 27, 2019, 12:24 PM
Jan 2019

I make LESS than 60K a year and my effective tax rate is 19.24%...still have to pay at the end of the year. No break at all.

The rich keep on getting richer.

StatGirl

(518 posts)
63. Are you an independent contractor?
Sun Jan 27, 2019, 02:27 PM
Jan 2019

That effective tax rate seems too high, unless you are paying both sides of Social Security and Medicare.

(Or if you're declared as a dependent on someone else's return, but few adults are.)

3Hotdogs

(12,210 posts)
27. either by reducing the number of "dependents" or just fill out the deduction form (W-2?) to include
Sun Jan 27, 2019, 12:28 PM
Jan 2019

deductions, plus and extra amount.


jpak

(41,742 posts)
44. Change your W-4 for extra withholding
Sun Jan 27, 2019, 01:03 PM
Jan 2019

Just ask yer HR dept. for the form - 2 seconds to fill out - (maybe 10)

progree

(10,864 posts)
24. I'm worse off because my itemized deductions exceed both the old and the new
Sun Jan 27, 2019, 12:25 PM
Jan 2019

standard deduction amounts. So the increase in the standard deduction didn't help me at all. But losing the personal exemption (it was $4050 in 2017) did hurt me.

My tax preparer back in March 2017 did a comparison of 2017 vs. expected 2018, assuming that I'd have the same income and expenses in 2018 as in 2017, and confirmed that.

George II

(67,782 posts)
28. They tried to hide the fact that the personal deduction was eliminated, which really hurts...
Sun Jan 27, 2019, 12:30 PM
Jan 2019

...families with children.

Standard deduction went up by 88% (not double) but the personal exemption went down 100%. A family of four had a personal exemption of $16,200 - that's GONE. The standard deduction went up only $11,300 - that's a difference of $4,900.

George II

(67,782 posts)
26. The "tax cut" is a big shell game, just like Reagan's big "tax cut" in the 1980s.
Sun Jan 27, 2019, 12:26 PM
Jan 2019

Like you point out, the withholding rate was reduced, so people appeared to immediately "profit" by the tax changes, but you pay at the end of the year.

Working families are the ones screwed the most. republicans claimed that the "standard deduction has doubled", but that's not true - it's a little less than double. For a married couple it went from $12,700 to $24,000 (double would have been $25,400) But what they don't point out is that at the same time the personal exemption of $4,050 was eliminated! That's $4,050 per family member.

For a married couple with no children, the combination went from $20,800 to $24,000, which is good.

However, if you're married with TWO children, the combination went from $28,900 to $24,000 - a REDUCTION of more than 20%!!! And if you have three or four children the reduction is even greater.

And I'm not even getting into all the deductions that have been eliminated.

George II

(67,782 posts)
38. Probably not - the credit is "up to" $2,000 - it could be lower depending upon other factors....
Sun Jan 27, 2019, 12:51 PM
Jan 2019

...(I don't have children so don't know what those conditions/income factors are)

But even if it's the maximum, for that family of four the net results are:

2017 $30,900
2018 $28,000

A loss of $2,900.

progree

(10,864 posts)
45. A $4050 exemption is equivalent to a $891 credit in the 22% tax bracket
Sun Jan 27, 2019, 01:03 PM
Jan 2019

Example for one child:

E.g. our taxable income is higher by $4,050 because we lost the dependent exemption. At the 22% tax bracket, that costs us: $4,050 * 22% = $891.

But we gain an extra $1,000 (in the best case) child tax credit.

So we're $1000 - 891 = $109 less taxes. (best case)

In the next tax bracket (24%) it comes to a $28 tax savings. In tax brackets above that (32%, 35%, 37%), TCJA is a tax loss

(All of the above is considering just these two factors alone -- dependent exemption and child tax credit).

========================================================

If we're in the 12% tax bracket:

Our taxable income is higher by $4,050 because we lost the dependent exemption. At the 12% tax bracket, that costs us: $4,050 * 12% = $486.

But we gain an extra $1,000 (in the best case) child tax credit.

So we're $1000 - 486 = $514 less taxes. (best case)

========================================================

I don't have children and I haven't studied the conditions/income factors that affect the child tax credit.


duforsure

(11,882 posts)
29. More people running from the liar trump and the gop , and this will only increase the numbers.
Sun Jan 27, 2019, 12:31 PM
Jan 2019

And they just thought the Mid Terms results for them was bad. 2020 will be an even worse disaster after trump gets done with them. Republicans best hope is to stand up and stop his every move, or their future , and their party is doomed. Republicans must be brain dead allowing him to do this to them now any longer.

Hangdog Slim

(80 posts)
31. I did the same
Sun Jan 27, 2019, 12:34 PM
Jan 2019

My accountant advised me to do the same and told my wife who is an independent contractor to pay more quarterly. Hopefully it's enough. I work with mostly Trumpers who aren't going to know what hit them. A lot of our deductions (I'm a trucker) were taken away. Someone on Fox or wing-nut radio will figure out some way to blame it on Democrats taking over the house and my colleagues will, of course, fall for it as they always do.

flying_wahini

(6,529 posts)
35. Our property taxes are $9,725 (Texas) and we are both retired and have zero income.
Sun Jan 27, 2019, 12:37 PM
Jan 2019

Thankfully the deduction is 10k.
Worried we will lose even more with the new changes.
We are making it on savings but thinking we may need to return to work.

We have family that owns more than one home so this is gonna hurt a LOT of families here.

MichMan

(11,790 posts)
39. That is why replacing state income taxes with property taxes isn't always good
Sun Jan 27, 2019, 12:52 PM
Jan 2019

Helps those who are working and don't own expensive property, but hurts retirees.

safeinOhio

(32,531 posts)
40. For middle income and low income folks...
Sun Jan 27, 2019, 12:54 PM
Jan 2019

They will be counting on that tax return for a down payment on a large purchase like a car.

This will hit profits for many companies.

 

watoos

(7,142 posts)
41. I retired in 2010,
Sun Jan 27, 2019, 12:56 PM
Jan 2019

and I get SS, a pension, and investment income. I control my withholdings. I deduct a % from SS and a % from my investments and a % from my pension, so I will be fine.

Living in Pa. also helps since Pa. doesn't tax pensions, investment income, or SS. We do have the highest tax on gasoline in the nation.

Freddie

(9,232 posts)
53. I'm in PA and retiring soon
Sun Jan 27, 2019, 01:46 PM
Jan 2019

And yes PA does not tax retirement $$. I know our gas taxes are high but the wage tax (3.07%) has not gone up since the Rendell admin and sales tax has been 6% since the dawn of time. Pisses me off when Repugs complain about PA taxes. High property taxes? Blame your school district or municipality.

wishstar

(5,267 posts)
46. I have friends who didn't adjust withholdings and will get much lower refunds than they expected
Sun Jan 27, 2019, 01:06 PM
Jan 2019

Some people I know just accepted (and spent) their increased pay last year without even questioning the lower federal tax withholding and are just now finding out from their tax preparer that the nice big refund they usually get is not arriving this year.

I counseled one friend yesterday about how to fix her withholdings to a higher amount this year in order to get a bigger refund since she has great difficulty trying to save rather than spending everything she gets. Personally I prefer to owe a little and get to use of all of my money throughout the year, but for some people getting a refund helps as forced savings giving them needed money for big car and/or house insurance bills and to make up for the big January property taxes.

MichMan

(11,790 posts)
54. The problem is that too many people are ignorant about taxes
Sun Jan 27, 2019, 01:49 PM
Jan 2019

I know several who believe that a big tax refund is somehow a "free" government windfall.

I try to explain that all it means is that they are getting their own money back because they overpaid.

I would rather have lower overall taxes and owe money on April 15th personally. Since we are a married couple with no dependents who haven't itemized for many years, I am hopeful that our overall taxes are lower this year.

Freddie

(9,232 posts)
55. I'm getting a nice refund
Sun Jan 27, 2019, 01:53 PM
Jan 2019

But I adjusted our W4s to have more taken out just in case. Not many people did, at least at my work (I do payroll). May be in for surprises.

redstatebluegirl

(12,264 posts)
57. We did too thank goodness.
Sun Jan 27, 2019, 01:56 PM
Jan 2019

We had them withhold the same amount we were before the "tax break". We still owe around 500 but it could have been much worse. Smoke and mirrors is all this is.

MichMan

(11,790 posts)
59. You could have increased your witholding by an additional $50 per week over what you owe
Sun Jan 27, 2019, 02:02 PM
Jan 2019

That way you would be getting an extra $2000 "refund" instead of paying $500

I personally only care what my total tax bill is, not how much of a "refund" I am getting.








redstatebluegirl

(12,264 posts)
60. I never let them have my money.
Sun Jan 27, 2019, 02:06 PM
Jan 2019

I do not want a refund of my money, i just want it as close as possible. I adjusted our withholding or we would have owed 2000.

dawnie51

(959 posts)
61. THIS is why Eddie Munster.....
Sun Jan 27, 2019, 02:08 PM
Jan 2019

took a powder. The whole scam was set to not go off until after the midterms, i.e. spring 2019, so Ryan sat on his ass for an entire year doing absolutely nothing, and just before the big explosion of tax season, he strolls off into the sunset.

Amishman

(5,541 posts)
75. I came out ahead, mainly due to the upped stand deduction
Sun Jan 27, 2019, 05:28 PM
Jan 2019

And the increased child credit.

I never quite had enough to itemize even under the old structure.

I know those with high state/property taxes will feel the pain though.

 

StTimofEdenRoc

(445 posts)
76. Just for the fun of it, put last years income into this years software.
Sun Jan 27, 2019, 05:34 PM
Jan 2019

I did with Turbotax. I can't believe they endangered my SS future this ....

And now my employer, while suffering under the weight of all that extra cash, gave us a 1% pool for this years raises.

The Polack MSgt

(13,159 posts)
83. I always shot for about an $1100 refund - enough for a bit of mad money in the spring
Sun Jan 27, 2019, 06:39 PM
Jan 2019

I did three separate calculators (the IRS Calculator, and 2 calculators put out by 2 of the investment companies holding pieces of my 401ks) when the law changed and all the calculators told me I would be fine the way my with holding was set up.

I put an extra $75 a month against my Federal taxes anyway.

So, If Trumpy was honest I should get round $2000 back from the Feds

I'll let everyone know how it worked out

jmowreader

(50,453 posts)
85. Call it a wake-up call to the MAGAts
Sun Jan 27, 2019, 06:53 PM
Jan 2019

This bill is going to cost me money. I know that right from the start. Call it schadenfreude, but it's going to be delicious watching the Trump supporters shit bricks when they realize Fearless Leader's "tax cut" has actually raised most people's taxes - ESPECIALLY people like the Quiverfulls who relied on personal exemptions that don't exist any more.

shanti

(21,672 posts)
86. I'm getting less back this year
Sun Jan 27, 2019, 06:57 PM
Jan 2019

about $600 less, but my income has increased due to SS pushing me into a higher tax bracket now, so there's that. I forgot to withhold when I signed up, and only caught my error in December. Next year should be better. I was worried I wouldn't be able to use my MCC this year, but nothing changed there, so that was good.

Oh, and the new form sucks. That is all.

helpisontheway

(5,004 posts)
87. We owe taxes for the very first time...
Sun Jan 27, 2019, 07:03 PM
Jan 2019

My husband lost about 10,000 in work related deductions. We would have owed thousands if it wasn’t for our credit for our son’s tuition and a few other things.

Response to helpisontheway (Reply #87)

D_Master81

(1,822 posts)
88. What did people expect?
Sun Jan 27, 2019, 07:32 PM
Jan 2019

Less money withheld??? I'm no fan of Trump's tax cut, but "less withholding" means you got your tax break during the year in your paycheck. The withholding schedules all got updated by the IRS to reflect the new tax laws. Assuming you didnt change your withholdings your refund should be very similar to past years. If people want to get bigger refunds, claim "0" on your W4 and have the most taken out possible. That all said, yes the average person isnt going to see much of a difference. If you own a pass through business however, those are the people that will see the biggest changes. Them and corporate returns.

Gothmog

(144,005 posts)
89. My son also had to adjust his withholding
Sun Jan 27, 2019, 07:34 PM
Jan 2019

I am a partner in a law firm and so the tables do not help. I upped my estimated tax payments for the last two quarters just to be safe

roamer65

(36,739 posts)
95. The tax changes are very beneficial to single income, standard deduction w/no children.
Mon Jan 28, 2019, 12:15 AM
Jan 2019

It appears to be a very significant tax cut for me.

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