shanendoah
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Post by shanendoah on Jan 30, 2019 13:20:37 GMT -5
So I just looked at what my taxes would have looked like this year, with JUST last year's w2 income - I would have gotten a refund instead of paying $875. This year, though, just taxes on W2, I owe around $1350.
I made no changes to my exemptions, so what I was most "hurt" by was the feds choosing to withhold less from my paycheck. If the same amount had been withheld from my paychecks in 2018 as 2017, I would only owe $250 this year. (Again, these numbers are on standard deduction, W2 income only.)
But yeah, the real difference for me appears to be that in 2017, the government withheld $7525 from my paychecks, and only $6436 in 2018, without me actually making any changes to my deductions.
I did make changes to my withholding this year, and it looks like I'm on track to have $7540 pulled out. Since I know that I will likely owe over $7800 next year (barring more major changes), I may go make another change to my withholdings. Or maybe I'll be fine with paying a few hundred each year in order to have access to my money during the year...
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iono1
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Post by iono1 on Jan 30, 2019 13:40:58 GMT -5
Last year I was at 13.04% of my adjusted gross income, this year I was at 11.14%. My taxes dropped by $1,652. My AGI was slightly lower this year.
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Deleted
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Post by Deleted on Jan 30, 2019 17:08:19 GMT -5
My AGI was also slightly lower but last year my taxes were 6.5% of AGI; now they're 8.6%. I suspect my percentages are lower than iono's because a lot of my income is dividends and LT gains.
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lynnerself
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Post by lynnerself on Feb 2, 2019 1:22:29 GMT -5
We're mostly done. Our itemized deductions were all of $3 over the standard deduction. A rough calculation looks like the loss of the personal exemptions is really close to the tax bracket savings. So over all a wash.
Did anyone who used to itemize save any money with the new tax laws? We are getting a bunch back from the state. Mostly because DH turned 65 and we started a 529 for new grandkid. We need to figure out how to tweek our State withholding a little. And despite the fact that I heard all over about the lowered federal tax withholding on everyone's paycheck, it didn't dawn on me that it was being done to DH pension check. They withheld $1000 less this year. So we owe a little, but that's OK.
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Deleted
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Post by Deleted on Feb 2, 2019 10:30:17 GMT -5
Interesting effect of the new tax law: I got a note from my electricity provider and will have a credit of $49 on my next bill due to the impact of the tax law changes.
A drop in the bucket compared to the increase in my personal taxes, but I'll take it!
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thyme4change
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Post by thyme4change on Feb 2, 2019 17:33:27 GMT -5
Also, I would put the blame on the politicians in the high tax state that you live in rather than the tax code changes. How about pushing the state legislature and governor to learn to live on less and bring the taxes more in line with other states, or to make other fundamental changes to the tax codes to change how taxes are collected. More importantly, the current democratic house will probably determine that anyone that has SALT taxes greater than $10,000 is too rich and will raise your tax rates and consider a wealth tax because you obviously own a home of greater value than you should and it is obviously your fault that, fill in the blank, has less money than you. Now, the republicans will just borrow the money and promise you that someone else will pay it back some day. Neither group today shows much interest in actually spending less, so I am not sure that there is much difference between the two. High tax vs low tax states aren't as variable when you consider sales taxes, which are regressive and not accounted for in federal code. They are easy to forget about because we don't have to report on them. Once they are paid, it just evaporates from our minds.
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Deleted
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Post by Deleted on Feb 3, 2019 8:16:55 GMT -5
Also, I would put the blame on the politicians in the high tax state that you live in rather than the tax code changes. How about pushing the state legislature and governor to learn to live on less and bring the taxes more in line with other states, or to make other fundamental changes to the tax codes to change how taxes are collected. More importantly, the current democratic house will probably determine that anyone that has SALT taxes greater than $10,000 is too rich and will raise your tax rates and consider a wealth tax because you obviously own a home of greater value than you should and it is obviously your fault that, fill in the blank, has less money than you. Now, the Republicans will just borrow the money and promise you that someone else will pay it back someday. Neither group today shows much interest in actually spending less, so I am not sure that there is much difference between the two. High tax vs low tax states aren't as variable when you consider sales taxes, which are regressive and not accounted for in federal code. They are easy to forget about because we don't have to report on them. Once they are paid, it just evaporates from our minds. I don't know that we forget them, but you are right that we overlook these when talking about high and low tax states. Alabama has low state and local taxes. But there is a 10% sales tax on almost everything including food.
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Deleted
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Post by Deleted on Feb 3, 2019 9:38:19 GMT -5
Alabama has low state and local taxes. But there is a 10% sales tax on almost everything including food. Yeah, sales taxes are getting way out of hand. In KS and MO they approach 10% and in KS they apply to food. (You can get a credit on your taxes for taxes on food but only below a certain income level.) I cross over to KS a lot but make it a point not to buy groceries there if I can help it. In Iowa, where DS and DDIL live, there are no sales taxes on food. And then there are the special taxing districts, where they add a little more onto the tax rate as some sort of kickback for the developers. Not that it makes a big difference to my bottom line, but I find that so annoying I avoid buying in those areas (mostly upscale shopping plazas) if I can.
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taz157
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Post by taz157 on Feb 3, 2019 9:46:54 GMT -5
KS has a crazy amount of sales tax jurisdictions; there were 919 as of April 2018 and I know it’s gone up since then. The state rate isn’t too bad (I think 4.5%) but once you add in the local jurisdictions, it definitely goes up. Some are as low as 7.75% while others are over 10%.
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lynnerself
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Post by lynnerself on Feb 3, 2019 18:16:26 GMT -5
So... I just tried to e file with my HR block software and was told that the IRS is not yet accepting some forms that we used. We can't file until these are updated. Next scheduled update is Feb 15th.
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TheOtherMe
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Post by TheOtherMe on Feb 3, 2019 18:48:16 GMT -5
I had to wait until January 31 to file my state return for that reason. My federal return was able to be filed with the update for January 25. The refund has been approved. Says it is to be deposited February 5. Keep checking on the updates lynnerself The update on the form I was waiting on kept changing dates.
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countrygirl2
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Post by countrygirl2 on Feb 3, 2019 21:53:48 GMT -5
I was hoping to get the return in before the next shutdown. I think I may have all the tax papers, going to double check.
I really can't tell if ours are more or less because of the changes. We still haven't gotten to where we can compare year over year yet.
Hopefully this year and next year we can.
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jd2005
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Post by jd2005 on Feb 4, 2019 11:45:59 GMT -5
The new tax code cost me about $3000. Guess I didn't make enough money to tap into that "good" tax break.
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SVT
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Post by SVT on Feb 4, 2019 17:49:20 GMT -5
The new tax code cost me about $3000. Guess I didn't make enough money to tap into that "good" tax break. How did you determine it cost you $3000?
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Deleted
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Post by Deleted on Feb 4, 2019 18:00:24 GMT -5
The new tax code cost me about $3000. Guess I didn't make enough money to tap into that "good" tax break. How did you determine it cost you $3000? Yes, I'm wondering this kind of stuff, too. Under withholding is a different problem than additional tax having to be paid because you lost itemization, etc. I know SALT reduction hurt a lot of people, but I'm just curious about specifics. I never thought I would pay more taxes. I was afraid that I would owe more money because the tax cut wasn't real. Reduced withholding was my fear.
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TheOtherMe
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Post by TheOtherMe on Feb 4, 2019 18:58:03 GMT -5
Dnephew1 and his wife are going crazy because their refund is less than last year's refund. I can't get through to them that the withholding tables changed and if they didn't do any calculations to see what would happen, then that is most likely the reason their refunds are less and they are lucky they don't owe.
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SVT
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Post by SVT on Feb 4, 2019 18:59:52 GMT -5
How did you determine it cost you $3000? Yes, I'm wondering this kind of stuff, too. Under withholding is a different problem than additional tax having to be paid because you lost itemization, etc. I know SALT reduction hurt a lot of people, but I'm just curious about specifics. I never thought I would pay more taxes. I was afraid that I would owe more money because the tax cut wasn't real. Reduced withholding was my fear. Not only that but if you made more in 2018 than 2017...
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Deleted
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Post by Deleted on Feb 4, 2019 19:10:02 GMT -5
Yes, I'm wondering this kind of stuff, too. Under withholding is a different problem than additional tax having to be paid because you lost itemization, etc. I know SALT reduction hurt a lot of people, but I'm just curious about specifics. I never thought I would pay more taxes. I was afraid that I would owe more money because the tax cut wasn't real. Reduced withholding was my fear. Not only that but if you made more in 2018 than 2017... Lol. Not a problem for teachers. But, sure, if you get a big raise. But if you get a big raise, don't you expect to pay more?
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SVT
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Post by SVT on Feb 4, 2019 19:49:29 GMT -5
Not only that but if you made more in 2018 than 2017... Lol. Not a problem for teachers. But, sure, if you get a big raise. But if you get a big raise, don't you expect to pay more? Well I meant for jd2005.
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aricia
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Post by aricia on Feb 6, 2019 13:41:21 GMT -5
Helped, primarily due to changes in the child tax credit. We typically don’t itemize. Last year we paid 12.0%, this year will be 9.7% on more income.
Edited to add: We made no changes to our exemptions and are getting a larger refund this year.
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spartyparty
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Post by spartyparty on Feb 6, 2019 14:05:49 GMT -5
Wouldn't have been any noticeable difference if not for the child tax credit. Probably better off in the long run as the itemized deductions continued to dwindle, but it's gonna suck when that $4k goes away.
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jd2005
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Post by jd2005 on Feb 12, 2019 11:40:15 GMT -5
The new tax code cost me about $3000. Guess I didn't make enough money to tap into that "good" tax break. How did you determine it cost you $3000? My income did not fluctuate between the 2 years. Everything remained pretty much the same. Yet last year, I received between $5 and $6k back, and this year, a little over $2k.
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SVT
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Post by SVT on Feb 12, 2019 18:52:44 GMT -5
How did you determine it cost you $3000? My income did not fluctuate between the 2 years. Everything remained pretty much the same. Yet last year, I received between $5 and $6k back, and this year, a little over $2k. Ok, and what was the total fed tax owed for 2018 vs 2017? Since your income remained pretty much the same and assuming no other major changes, it would be more accurate to go by total tax paid between those 2 years, not just by refund. Sure, the new tax changes could've hurt you but you should go by total tax paid not refund amount because... Side note: From what I've read, part of the issue with people getting less of a refund this year than usual or owing more than usual is that the IRS changed the withholding tables yet most people didn't review their withholding and adjust accordingly (including me, however, I pay estimated quarterly taxes and spot check where I am using Taxcaster a few times throughout the year). For a lot of people, once the withholding tables changed, they were having less taxes taken out throughout the year. This would cause a bump in pay throughout the year but a lower refund or more tax owed at the end of the year. It doesn't necessarily mean you're paying more in taxes than the previous year. Some people could actually be paying less taxes than the previous year (on same income) yet it may not seem that way if they're just going by what their refund is. It's more accurate to go by total tax paid, since the withholding tables changed last year.
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TheOtherMe
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Post by TheOtherMe on Feb 12, 2019 20:25:37 GMT -5
My income did not fluctuate between the 2 years. Everything remained pretty much the same. Yet last year, I received between $5 and $6k back, and this year, a little over $2k. Ok, and what was the total fed tax owed for 2018 vs 2017? Since your income remained pretty much the same and assuming no other major changes, it would be more accurate to go by total tax paid between those 2 years, not just by refund. Sure, the new tax changes could've hurt you but you should go by total tax paid not refund amount because... Side note: From what I've read, part of the issue with people getting less of a refund this year than usual or owing more than usual is that the IRS changed the withholding tables yet most people didn't review their withholding and adjust accordingly (including me, however, I pay estimated quarterly taxes and spot check where I am using Taxcaster a few times throughout the year). For a lot of people, once the withholding tables changed, they were having less taxes taken out throughout the year. This would cause a bump in pay throughout the year but a lower refund or more tax owed at the end of the year. It doesn't necessarily mean you're paying more in taxes than the previous year. Some people could actually be paying less taxes than the previous year (on same income) yet it may not seem that way if they're just going by what their refund is. It's more accurate to go by total tax paid, since the withholding tables changed last year.This is what is mostly happening. I entered my 2018 data in to my 2017 software and it's about $250 difference in tax--not refund. People are comparing refunds and they should be comparing the tax they are paid. They forget the withholding tables changed.
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jd2005
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Post by jd2005 on Feb 13, 2019 10:29:27 GMT -5
My income did not fluctuate between the 2 years. Everything remained pretty much the same. Yet last year, I received between $5 and $6k back, and this year, a little over $2k. Ok, and what was the total fed tax owed for 2018 vs 2017? Since your income remained pretty much the same and assuming no other major changes, it would be more accurate to go by total tax paid between those 2 years, not just by refund. Sure, the new tax changes could've hurt you but you should go by total tax paid not refund amount because... Side note: From what I've read, part of the issue with people getting less of a refund this year than usual or owing more than usual is that the IRS changed the withholding tables yet most people didn't review their withholding and adjust accordingly (including me, however, I pay estimated quarterly taxes and spot check where I am using Taxcaster a few times throughout the year). For a lot of people, once the withholding tables changed, they were having less taxes taken out throughout the year. This would cause a bump in pay throughout the year but a lower refund or more tax owed at the end of the year. It doesn't necessarily mean you're paying more in taxes than the previous year. Some people could actually be paying less taxes than the previous year (on same income) yet it may not seem that way if they're just going by what their refund is. It's more accurate to go by total tax paid, since the withholding tables changed last year. Whether you go by taxes paid or amount of refund, either way I am down about $3k. Regarding the IRS change to the withholding tables, this was also caused by the 2018 Tax Law...so not unrelated. On a whole, the new law and its effects has caused me to not see an increase in my paycheck, and get about $3k less when I filed.
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phil5185
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Post by phil5185 on Feb 13, 2019 17:48:01 GMT -5
As SVT pointed out, your refund has nothing to do with your tax liability. Eg, say that your taxes are $12,000. If you pay $14000 during the year the IRS owes you a $2000 refund. Or, if you pay $10,000 during the year, you owe the IRS $2000. Either way, your 2018 taxes are $12,000
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TheOtherMe
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Post by TheOtherMe on Feb 13, 2019 20:49:10 GMT -5
The withholding tables were changed around February 1, 2018. Unless a person changed the withholding, the amount of federal taxes withheld decreased.
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wvugurl26
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Post by wvugurl26 on Feb 13, 2019 23:30:20 GMT -5
I filed our federal return tonight. I think we did better but the salt cap hurt us. I'm pretty sure I have the joint return we didn't file last year to compare to. We got married later in 2017 and had different residences.
State taxes we owed an additional $250 on top of us both withholding at the single rate. We'll mail that in April. The ridiculous part is it wants me to make estimated payments of $428 per quarter. Not happening.
I might run that by my boss. He's done taxes in this state for a long time. I'm not doing it, just trying to understand the logic.
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gs11rmb
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Post by gs11rmb on Feb 14, 2019 9:03:40 GMT -5
Just filed our taxes. In 2017, we paid 17.5% of our AGI in federal taxes and in 2018 that figure went down to 14.4%. We've been in our house over a decade so our interest payments continue to decrease. The $24,000 standard deduction worked out in our favour.
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Deleted
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Post by Deleted on Feb 14, 2019 9:12:37 GMT -5
How did you determine it cost you $3000? My income did not fluctuate between the 2 years. Everything remained pretty much the same. Yet last year, I received between $5 and $6k back, and this year, a little over $2k. Did you lose the ability to itemize or something? There are a LOT of people complaining around the office, including higher up account managers that should have a good grasp of the math, but I'm confused how most are not coming out ahead.
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