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How Many Got Screwed by the New Tax Laws?
- Thread starter majspud
- Start date
rep308
NES Member
Owe/Don't owe is a function of withholding. Pay me a $100 each week and every April 15th I'll write you a check for a $5100 refund.
How much did you pay in total Fed tax compared to last year? I did quite well, in spite of not itemizing and taking the standard deduction for the first time in over 30 years. The tax cut lowered my overall Fed tax bill 15% so I'm a happy man.
How much did you pay in total Fed tax compared to last year? I did quite well, in spite of not itemizing and taking the standard deduction for the first time in over 30 years. The tax cut lowered my overall Fed tax bill 15% so I'm a happy man.
SpaceCritter
NES Member
Well, no.
The big change that hit a lot of people - including my family - was the SALT deduction limitation.
rep308
NES Member
Yes, I was capped and took the $24K standard deduction instead or itemizing state and local taxes that is now capped at $10K. I did not owe Alternative Minimum Tax (AMT) this year and everything worked out for me.
Kicker96FS
NES Member
JFC! You are getting your REFUND each and every week in your pay check!
It's simple math, do it!
Oh, I'm sorry, does everyone what a tax reduction AND a refund?! The money has to come from someplace and it's YOU!
It's simple math, do it!
Oh, I'm sorry, does everyone what a tax reduction AND a refund?! The money has to come from someplace and it's YOU!
headednorth
NES Member
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I was trying to explain this to people in work. You have more money in your pocket every week. You're not giving them as big of an interest free loan. Didnt matter. They're all pissed their refunds are smaller. "You know they're just giving you your own money back right? You're not really gaining anything when you get that check." Blank stare...
rep308
NES Member
As part of the new tax law they reduced the amount withheld weekly to give you more money every week, that's why the "refunds" are lower. Again, look at what you paid last year and this year and tell the difference.
I wish the GOP proposal from a decade ago, eliminating withholding and making everyone pay quarterly passed. People don't pay attention to how much is being stolen from their paychecks each week and actually think a refund is a good idea.
I wish the GOP proposal from a decade ago, eliminating withholding and making everyone pay quarterly passed. People don't pay attention to how much is being stolen from their paychecks each week and actually think a refund is a good idea.
SpaceCritter
NES Member
Well, no. For that to be the case, my family would have had to see an extra $115/week in the checks. There was more, but not $115 more.
strangenh
NES Member
If you earn enough to itemize and live in a high-tax state and locality, yeah, you very well might come out behind on this one. Part of the idea is to stop rewarding high-tax/spend states with effectively taking the money from other states.
SpaceCritter
NES Member
Agreed. Solution for us (and it's been in the works for some time): Move to New Hampshire.
![[grin]](/xen/styles/default/xenforo/smilies.vb/041.gif "Grin [grin]")
Seriously, as bad as property taxes in Lisbon, NH are, I did the math and it'll end up being a WASH versus what we've been paying here in Connecticut.
GF and I both paid MORE in taxes this year. Her - about 1700 more. Not happy. Bottom line of the tax bill was higher for each of us under the new law. I got a raise so I can see mine changing, but her salary was static.
HarryPottar
NES Member
I ended up paying this year a small amount which wasn’t a bad thing. I had less withheld and over all payed a little less tax than last year. Not enough to buy a vacation home but enough to treat myself to something of the dollar menu.
This affected our personal deductions, but we still had way over the standard deduction. My wife is self-employed and benefited from a few extra deductions. However, MA does not recognize some of the extra Federal deductions on Schedule C. Makes accounting difficult from year to year. And we always owe the state when we file. This year may be worse, still figuring it out.
VetteGirlMA
NES Member
I ended up owing but it's already paid and done so I'm done with it. I changed my 401k and put more money into it, although I'm already getting close to hitting the federal maximum. If I do I will adjust my withholdings for the rest of the year. It's a pain but honestly the more I think about it I actually like it because I'm keeping more of my own money. I look at it this way I am getting more money in my pocket and in return I am putting more money away for the future without paying taxes on it today. That's a win-win. I will admit I was taken by complete surprise when I normally had a refund and saw it vanish because of the tax cap.
How about. Refund. But nuch much lower than lastbyear.
45collector
NES Member
I'm over here scratching my head trying to figure out what this has to do with the Milsurp section...
So I'll just through this in and say... Holy shit WHY would you call the police in this situation? Keep them and STFU!!!!!!
German beachcomber finds box of 30 WWII pistols after storm (PHOTOS)
So I'll just through this in and say... Holy shit WHY would you call the police in this situation? Keep them and STFU!!!!!!
German beachcomber finds box of 30 WWII pistols after storm (PHOTOS)
CrackPot
NES Member
Where is the dislike button? WTFC about the refund. What matters is your total tax liability. They mangled the per paycheck tax witholding (reduced) so that you got more in every paycheck. That means you now have a larger check to write at the end of the year. BUT, the only thing that matters is your total liability for the year. For the same income, my liability is less. I still owe more than your highest category, but that is just good planning.
Remember, you dont get penalized if you withold at least as 100% of previous year tax or 90% of this years tax whichever is less (I am not an accountant, so go research this yourself). Good planning is you always owe money at tax time.
Remember, you dont get penalized if you withold at least as 100% of previous year tax or 90% of this years tax whichever is less (I am not an accountant, so go research this yourself). Good planning is you always owe money at tax time.
Palladin
NES Member
my 'refund' annually is usually less than $100, I cut it really close. This year, we lost a kid deduction, and the dependant deduction is gone. that cost me $2k. I found this out in January, I bumped my 401k up by 6%, had the wife take an extra $50/week out in taxes. I'll be even again next year.
We never get a refund. And I like it that way. Why on earth would I want to give emthe fed an interest free loan all year.
I tried to explain this to people at work too and about them getting more in each check. They didn’t want to hear it or do the math
I tried to explain this to people at work too and about them getting more in each check. They didn’t want to hear it or do the math
Kicker96FS
NES Member
Heh, heh, Just got back from the CPA, made out like a bandit. THey only took out like 10% on the fed, withholding this year, plus the standard deduction is 24k rather than the 12+k (married) so that kind of balances it off, Then with the wifes write offs, Car lease, depreciation of equipment, room in the house, etc. I get a nice payday from both the state and Fed.
The wife's trip to the ER last month will eat up most of it though.
The wife's trip to the ER last month will eat up most of it though.
I didn’t answer poll as poll is meaningless.
Used standard deduction this year as it was better for me than itemizing. First time in 40 years.
Comparing 2018 return to 2017 effect of new law was negligible. Big increase of standard deduction offset reduction of SALTT and not itemizing. Slight increase in fed tax liability was due to income increase. Decrease in this years refund almost exactly equal to decrease in fed tax withhholding.
Used standard deduction this year as it was better for me than itemizing. First time in 40 years.
Comparing 2018 return to 2017 effect of new law was negligible. Big increase of standard deduction offset reduction of SALTT and not itemizing. Slight increase in fed tax liability was due to income increase. Decrease in this years refund almost exactly equal to decrease in fed tax withhholding.
pastera
NES Member
Invalid poll - How about asking if your effective rate went up or down on a similar income...
My wife went back to work last June so my taxes went through the roof and my effective tax rate went up 30% - but the wife makes pretty good money so didn't get screwed per se, my income just went way up.
My wife went back to work last June so my taxes went through the roof and my effective tax rate went up 30% - but the wife makes pretty good money so didn't get screwed per se, my income just went way up.
My tax rate went from 15% to 12%, I got $600 less than last year. Owed MA $23. I'm not unhappy. Had to take the standard deduction of $24k.
It is what it is.
It is what it is.
UJay
NES Member
I had to take a loan out last year to pay my taxes,while this year I was able to pay off last year's taxes and reorganize my debt eliminating all CC balances.
This is the best tax season I can remember.
This is the best tax season I can remember.
