wvugurl26
Distinguished Associate
Joined: Dec 19, 2010 15:25:30 GMT -5
Posts: 21,731
|
Post by wvugurl26 on Oct 28, 2018 20:29:23 GMT -5
DH always itemized but he had his withholding set with no exemptions. He didn't change it when we got married. I think that's why we are coming out okay despite losing $10k in deductions.
|
|
countrygirl2
Senior Associate
Joined: Dec 7, 2016 15:45:05 GMT -5
Posts: 16,980
|
Post by countrygirl2 on Oct 28, 2018 22:48:33 GMT -5
They automatically take 10% out of the RMD, I paid in 10% more for the one they have paid us so far and sent it in on estimated, will do the same on the rest. I think I need to start getting 10% taken out of our SS payments this coming year too.
It's bad when you have to take so much money out of the RMD just to pay taxes, seems like more of it is going, I wish hubs had not put so much in it, sigh. I'm trying to spend less money. If we can just get that newest rental done and on the market this year we will stop the bleeding. Getting his moms done was really good, that has helped tremendously. The guy there is going to have to have shoulder surgery, he said he has short term disability as we wondered how he was going to live. Hope he does, I would sure hate to have to make someone leave while he is rehabbing. He didn't rent from us a couple years ago because he had surgery on I think his other shoulder. He is a truck driver and he said the pain is getting almost more then he can stand so its coming. We still have to spend money on the last house to fix it, the new bathroom, kitchen countertops, some new windows, an AC unit, the furnace is good, termiting it I'm pretty sure. Floor coverings. Lot of money and the garage there needs a new roof and its a big garage, is leaking one spot in the back so likely 2020 for it after its got money coming in. I don't want to take it out of savings, we shall see.
|
|
Tiny
Senior Associate
Joined: Dec 29, 2010 21:22:34 GMT -5
Posts: 13,374
|
Post by Tiny on Oct 29, 2018 10:46:26 GMT -5
I did ours earlier this year when the new calculator came out, and again recently. The first time I had to massively change my withholdings. Because of my mortgage interests, taxes, and other deductions, I had my taxes set up with a couple of exemptions to reduce my withholdings, and come close to even at the end of the year (married withholding at higher single, but plus 2 exemptions). As soon as they put in the new tax tables, my withholding went to essentially 0, and I knew that wasn't right. I think it calculated that I would owe like $10k. Basically, I had to remove my exemptions, and added a couple of extra $ to my withholding (about 30 or so) to make up for the paycheck or so with no withholding. I think anyone who used the exemption tactic to accommodate an itemized deduction approach who didn't change their exemptions probably is going to owe a bunch of money. And I have no idea how it works with kids now. I think the last time I ran the calculator, it said I would get about $1k back. That's likely not true since I always forget some small random income - interest, dividends, about 1500 of income from my DH's band.... I, too, had my exemptions set up to reduce my withholdings to offset my deductions. I lowered my exemptions since the calculator I used indicated I'd be owing what to me was an astonishing amount. I wonder if the people in my life who would crow about how wonderfully big their refund was, will be crowing about it's size this year. I also second the statement that was made by another poster that the majority of people have no idea (not even a smidgen of understanding) of how income taxes work.
|
|
chen35
Senior Member
Joined: Apr 6, 2011 19:35:45 GMT -5
Posts: 2,297
|
Post by chen35 on Oct 29, 2018 10:49:08 GMT -5
I feel like my company is way over witholding given the new tax laws. I haven't changed my deductions because I'd rather be safe than sorry. Hopefully they aren't under withholding...
|
|
teen persuasion
Senior Member
Joined: Dec 20, 2010 21:58:49 GMT -5
Posts: 4,057
|
Post by teen persuasion on Oct 29, 2018 21:38:00 GMT -5
The IRS has been making a push to raise awareness of their withholding calculator. The emails to professionals has reached an annoying level. I don’t know what efforts they’ve made to get the info out directly to the general public. We cautioned all of our clients that they should double check their withholdings, but they never listen to us. Twitter They've sent me emails (at the library) about their Twitter info campaign. So the library is dutifully following them on Twitter, but I'm not retweeting most of them, they're not quite apropos for our mission. I got the order form for tax forms for the public to pick up at the library. I don't think they expect many people to use paper forms - they suggested 17 sets of the 1040 plus Schedules 1 thru 6. Given that it replaces 1040A and EZ, just 2 years ago we ran out after 250 forms of all types. At least I could override their suggestion and order more, unlike the state which only sent 5 forms each. Of course, if the forms are again delayed for months, it's a moot point, anyway.
|
|
|
Post by The Walk of the Penguin Mich on Nov 1, 2018 12:45:29 GMT -5
For those who are interested, we had a meeting with our tax accountant yesterday. Despite it being for another reason, I got some interesting insight with regards to 2018 taxes.
For those married couples who put in 0 exemptions, you are most likely going to be correct with regards to your W2 income. If you have kids, a rough rule of thumb is that your kids are your number of exemptions, do NOT exempt yourself because your exemption is included in the $24,000 deducted from your AGI as a married couple. However, this was not crystal clear in the 1700 pages of new tax rules that the accountant needed to read. It wasn't until he went back and did the math that he figured it out. So the IRS saying "check your exemptions" really does not explain it clearly why you need to check (and adjust) your exemptions.
Also, he told us that he thinks that the new tax laws are not going to last forever - he said at the most 8 years, but it could possibly be less. If the tax laws change, they will likely revert to those of 2017. Because of this, we are starting to backdoor Roths as much of our traditional IRAs as possible as it WILL be higher in retirement for us.
|
|
Deleted
Joined: May 19, 2024 4:16:26 GMT -5
Posts: 0
|
Post by Deleted on Nov 1, 2018 12:55:17 GMT -5
For those who are interested, we had a meeting with our tax accountant yesterday. Despite it being for another reason, I got some interesting insight with regards to 2018 taxes. For those married couples who put in 0 exemptions, you are most likely going to be correct with regards to your W2 income. If you have kids, a rough rule of thumb is that your kids are your number of exemptions, do NOT exempt yourself because your exemption is included in the $24,000 deducted from your AGI as a married couple. However, this was not crystal clear in the 1700 pages of new tax rules that the accountant needed to read. It wasn't until he went back and did the math that he figured it out. So the IRS saying "check your exemptions" really does not explain it clearly why you need to check (and adjust) your exemptions. Also, he told us that he thinks that the new tax laws are not going to last forever - he said at the most 8 years, but it could possibly be less. If the tax laws change, they will likely revert to those of 2017. Because of this, we are starting to backdoor Roths as much of our traditional IRAs as possible as it WILL be higher in retirement for us. All the good stuff (extra child tax credit, reduced brackets, etc) was written to expire in 7 years. The only "permanent" changes were the business tax cuts.
|
|