wvugurl26
Distinguished Associate
Joined: Dec 19, 2010 15:25:30 GMT -5
Posts: 21,698
|
Post by wvugurl26 on Feb 14, 2019 9:23:23 GMT -5
I'm betting they aren't accounting for the lower withholding from their check. DH asked for both of his W2s last night 2017 and 2018. He made $7k more in 2018 and had less withholding than 2017. Our refund is about $3k less but overall I think we did better at least for federal. I think we get screwed on state for being married and dual "high income".
|
|
TheOtherMe
Distinguished Associate
Joined: Dec 24, 2010 14:40:52 GMT -5
Posts: 27,163
Mini-Profile Name Color: e619e6
|
Post by TheOtherMe on Feb 14, 2019 11:51:23 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. 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.
People are not accounting for the change in the withholding tables and the loss of personal exemptions. It was never a tax cut for the middle class.
|
|
ners
Junior Associate
Joined: Dec 23, 2010 16:21:18 GMT -5
Posts: 6,487
|
Post by ners on Feb 16, 2019 15:01:38 GMT -5
Just finished my tax return.
I had a higher taxable income and paid less tax even though my refund is less.
I earn less than 41000.00 a year.
Not really sure how the tax changes will play out in the long run. I do not think I will itemizing again unless the standard deduction decreased by over 5000.00. I file single.
|
|
wvugurl26
Distinguished Associate
Joined: Dec 19, 2010 15:25:30 GMT -5
Posts: 21,698
|
Post by wvugurl26 on Feb 16, 2019 15:27:50 GMT -5
I finally compared both federal returns. We paid $300 more in federal taxes in 2018. Our taxable income increased by $19,600 this year.
|
|
TheHaitian
Senior Associate
Joined: Jul 27, 2014 19:39:10 GMT -5
Posts: 10,144
|
Post by TheHaitian on Feb 16, 2019 16:18:53 GMT -5
I know a lot of people on my area (VA, MD) with high property taxes are really complaining about the 10k limit... I know my mom in NJ with 13k property taxes last year is not too happy about it either.
Have yet to file because concerned about how much we will owe.
|
|
plugginaway22
Well-Known Member
Joined: Jan 2, 2011 10:18:42 GMT -5
Posts: 1,655
|
Post by plugginaway22 on Feb 17, 2019 15:42:55 GMT -5
Well we owe more than I expected, tad more than $3100. We made about 20k more and I didn't adjust our withholdings I guess...Grrrrr. Also says we owe a penalty for under withholding. This will mess with my good progress on the Savers thread. They don't get a penny until mid April.
|
|
taz157
Senior Associate
Joined: Dec 20, 2010 20:50:06 GMT -5
Posts: 12,828
|
Post by taz157 on Feb 17, 2019 15:54:55 GMT -5
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. Basically, it calculated you/DH making estimated payments for your state so you wouldn't have to pay an estimated state tax penalty for not paying enough/having enough withheld assuming you don't change your state withholdings for 2019. If you/DH have more withheld for state taxes in 2019, then you shouldn't need to make any estimated state taxes.
|
|
Deleted
Joined: Apr 26, 2024 0:48:10 GMT -5
Posts: 0
|
Post by Deleted on Feb 17, 2019 16:07:19 GMT -5
This year I paid ~$100 less in federal income tax. That was with ~4% increase in income. I'm also in a high SALT state, so this year only got to take the standard deduction versus itemizing. Either way, nothing earth shattering and worked out exactly as I figured when redoing my withholding. So a tax cut but nothing to write home about.
|
|
wvugurl26
Distinguished Associate
Joined: Dec 19, 2010 15:25:30 GMT -5
Posts: 21,698
|
Post by wvugurl26 on Feb 17, 2019 16:53:40 GMT -5
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. Basically, it calculated you/DH making estimated payments for your state so you wouldn't have to pay an estimated state tax penalty for not paying enough/having enough withheld assuming you don't change your state withholdings for 2019. If you/DH have more withheld for state taxes in 2019, then you shouldn't need to make any estimated state taxes. I'm not inclined to mess with our withholdings over a $250 bill. That's my confusion why do they want $1700 in estimated payments on top of our withholding when we owe so little? If we owed like $1000 maybe I could see. I'm just ignoring it. If DH's big promotion materializes then I will set up additional withholding from our checks.
|
|
taz157
Senior Associate
Joined: Dec 20, 2010 20:50:06 GMT -5
Posts: 12,828
|
Post by taz157 on Feb 17, 2019 17:17:15 GMT -5
Basically, it calculated you/DH making estimated payments for your state so you wouldn't have to pay an estimated state tax penalty for not paying enough/having enough withheld assuming you don't change your state withholdings for 2019. If you/DH have more withheld for state taxes in 2019, then you shouldn't need to make any estimated state taxes. I'm not inclined to mess with our withholdings over a $250 bill. That's my confusion why do they want $1700 in estimated payments on top of our withholding when we owe so little? If we owed like $1000 maybe I could see. I'm just ignoring it. If DH's big promotion materializes then I will set up additional withholding from our checks. Based on what you said, that is weird. If I was you, I would do as you stated.
|
|
countrygirl2
Senior Associate
Joined: Dec 7, 2016 15:45:05 GMT -5
Posts: 16,893
|
Post by countrygirl2 on Feb 18, 2019 10:52:45 GMT -5
Seems like I'm always paying a penalty, they calculate the federal and allocate so much income to each quarter I guess, unless I greatly overpaid I seem to get dinged. Not going to worry about it will just pay. Same with the state, next year will start doing estimated payments so a penalty this year.
|
|
Value Buy
Senior Associate
Joined: Dec 20, 2010 17:57:07 GMT -5
Posts: 18,680
Today's Mood: Getting better by the day!
Location: In the middle of enjoying retirement!
Favorite Drink: Zombie Dust from Three Floyd's brewery
Mini-Profile Name Color: e61975
Mini-Profile Text Color: 196ce6
|
Post by Value Buy on Feb 18, 2019 13:46:59 GMT -5
Seems like I'm always paying a penalty, they calculate the federal and allocate so much income to each quarter I guess, unless I greatly overpaid I seem to get dinged. Not going to worry about it will just pay. Same with the state, next year will start doing estimated payments so a penalty this year. While we were both working, there were a few years where we owed the feds money, up to $2,000 two times. We had money with held from our paychecks, and the IRS never asked for quarterly payments or sent us a penalty notice. We usually sent our tax papers in by mid March, with the check, so that might be why we never had a penalty. We owed the state $176 one year, (20 to25 yrs ago) and got the letter of making extra quarterly payment to them. I just upped my with holding to the state, and never heard from them again, although we do usually write a small check to them almost every year. If you are "always paying a penalty" you are being dinged for a reason. Probably way under estimating gross income and necessary with holding.......
|
|
Deleted
Joined: Apr 26, 2024 0:48:10 GMT -5
Posts: 0
|
Post by Deleted on Feb 18, 2019 13:57:42 GMT -5
I thought as long as you had withheld the amount you owed the prior year you would not be penalized? I think I'd just shoot for that all the time.
|
|
spartan7886
Familiar Member
Joined: Jan 7, 2011 14:04:22 GMT -5
Posts: 788
|
Post by spartan7886 on Feb 18, 2019 16:04:06 GMT -5
I thought as long as you had withheld the amount you owed the prior year you would not be penalized? I think I'd just shoot for that all the time. Over a certain level of income it's 110%.
|
|
countrygirl2
Senior Associate
Joined: Dec 7, 2016 15:45:05 GMT -5
Posts: 16,893
|
Post by countrygirl2 on Feb 18, 2019 17:21:37 GMT -5
Our income has been all over the place the last few years, I have overpaid this year I'm pretty sure. I have taxes taken out of the RMD's, I missed one so will change that for next year and paid $8k in estimates. But on the forms I saw, they do it by quarter and allocate your taxes against it I guess so it was under each quarter, that was last year.
I haven't paid estimated in Indiana, next year I will so I know I have a penalty there.
When hubs worked overseas, the filer paid a penalty every year but they covered it so didn't effect us.
The one change the accountant told me about today is we need to start keeping a work log. Since we are active participants in our LLC he has to exceed 250 a year. I said probably closer to 2000 a year! LOL! I will keep one for me too, we can meet that criteria pretty easily. But that is new and a pain in the butt. Also hubs needs to let me know which house he is working on for fuel, so I can do better with that.
|
|
CCL
Junior Associate
Joined: Jan 4, 2011 19:34:47 GMT -5
Posts: 7,594
|
Post by CCL on Feb 18, 2019 19:38:30 GMT -5
I thought as long as you had withheld the amount you owed the prior year you would not be penalized? I think I'd just shoot for that all the time. That's what I do. Since retiring it's hard to figure out how much to withhold. Everything keeps changing on me.
|
|
CCL
Junior Associate
Joined: Jan 4, 2011 19:34:47 GMT -5
Posts: 7,594
|
Post by CCL on Feb 18, 2019 19:50:14 GMT -5
I thought as long as you had withheld the amount you owed the prior year you would not be penalized? I think I'd just shoot for that all the time. Over a certain level of income it's 110%. I had never heard that before, so looked it up. Per the IRS website it says the amount of income for 2017 was $150k. We don't make nearly that much, so at least I don't have to worry about that, too. www.irs.gov/publications/p505#en_US_2018_publink1000194583
|
|
chiver78
Administrator
Current Events Admin
Joined: Dec 20, 2010 13:04:45 GMT -5
Posts: 38,510
|
Post by chiver78 on Feb 18, 2019 19:57:41 GMT -5
I'm honestly not sure yet. I changed jobs in 2018 in the same month where my mortgage company sold my note to another servicer. so I have two of every f*cking thing this year, it's great. I gathered my checklist of forms today for my CPA, it's been collecting since mid-Jan. ran the numbers through some online calculators with widely varying results, so I haven't the faintest clue what to expect back from the CPA. one calculator said I owed $36, another was giving me a $1300 refund.
|
|
nittanycheme
Established Member
Joined: Aug 8, 2011 14:26:36 GMT -5
Posts: 487
|
Post by nittanycheme on Feb 18, 2019 21:13:20 GMT -5
I've been working our way through our taxes. We took the standard deduction this year - which offset the fact that we would have hit the SALT limit. The new standard deduction for married folk was slightly higher than my deductions for last year (by about 1 k or so). We had slightly higher income, and I think we'll end up paying about the same amount this year as last year. So, I guess we got a slight break - but not a lot. Turbo tax did give me a scare though - it looked like I owed a bunch until I got to the screen with the HSA stuff, and then I ended up going from owing to getting a refund. Very strange since all our HSA contributions go through our paychecks....
|
|
phil5185
Junior Associate
Joined: Dec 26, 2010 15:45:49 GMT -5
Posts: 6,409
|
Post by phil5185 on Feb 19, 2019 17:52:47 GMT -5
Our 2018 taxes are about $1600 lower than our 2017 bill. Our 2018 gross income was about $6k higher, our stats are about the same as last year. So we're plenty happy with the 2018 Tax Code changes.
We're over 65, the $26600 standard deduction was a big factor for us.
|
|
souldoubt
Senior Member
Joined: Jan 4, 2011 11:57:14 GMT -5
Posts: 2,745
|
Post by souldoubt on Feb 19, 2019 18:05:46 GMT -5
Our effective federal income tax rate for 2018 is the same as 2017. The higher standard deduction and the fact that we don't have any kids (exemptions) worked in our favor but the SALT deduction cap worked against us. I'm fine with what I pay in a progressive tax system but I'm concerned when we're trillions in debt and one "solution" being floated is to tax the wealth of others while there's no mention of addressing the real issue which is spending.
|
|
countrygirl2
Senior Associate
Joined: Dec 7, 2016 15:45:05 GMT -5
Posts: 16,893
|
Post by countrygirl2 on Feb 19, 2019 20:06:02 GMT -5
Since the last 3 years have all been different, we have no idea.
First year he was still working and subject to hypotax. Next year we sold a piece of real estate so was very distorted by that. This year is the first year taxes are fairly clean, but until 2021 may not be able to be sure as we generated a loss by reinvesting all our rental income into the house last year and now we are investing into one more. So hopefully 2021 will be the benchmark for many years to come.
|
|
resolution
Junior Associate
Joined: Dec 20, 2010 13:09:56 GMT -5
Posts: 6,980
Mini-Profile Name Color: 305b2b
|
Post by resolution on Feb 23, 2019 22:10:08 GMT -5
We had our taxes done today. Our federal tax went down by $500 and our Maryland tax went up by $800. We used to itemize, but this year claimed the standard deduction, which we were then required to use for our state return. Using the standard deduction for our state and local taxes hurt us a bit.
|
|
thyme4change
Community Leader
Joined: Dec 26, 2010 13:54:08 GMT -5
Posts: 40,393
|
Post by thyme4change on Mar 24, 2019 17:49:02 GMT -5
My taxes went up. Fed a little, state a lot. It doesn't bother me - I guess I am not quite rich enough to get the break.
|
|
nittanycheme
Established Member
Joined: Aug 8, 2011 14:26:36 GMT -5
Posts: 487
|
Post by nittanycheme on Mar 24, 2019 20:04:19 GMT -5
Final return is filed now. My effective tax rate last year was 17.4% and this year is 15.6%. So, it did go down for me. My state and local taxes are totally independent of my federal, so no impact on that part. However, I'm not sure the long term impact of this tax cut is going to be good for the future of the country - at least if you aren't in the 1%.
|
|
countrygirl2
Senior Associate
Joined: Dec 7, 2016 15:45:05 GMT -5
Posts: 16,893
|
Post by countrygirl2 on Mar 24, 2019 21:34:56 GMT -5
With the additional depreciation we can now take on the house put in service last year and the fact we spent so much on that house, we got all our money refunded or will. Made us very low income. We have around $10k depn in the LLC plus about $8k ins and PT, plus various expenditures, quite a bit of charitable giving, told hubs we need to pull back on that, so had little income. So we got $9237 back! We never itemize so I'm assuming, as I don't know that the $25k plus personal helped a lot. We are low income tax payers now! Well last year and this year anyway. Now if it all doesn't go for a hospital bill I can get new flooring. Am waiting till later in the year anyway, to make sure we don't need it elsewhere.
We were going to go look at another house to buy, but luckily it was under contract, hubs was all ready. LOL! He would like 10, I don't care, what we have is enough. One day he isn't buying anymore, the next he is.
We are supposed to get that back, have not yet. Paid $361 state, $435. getting personal return prepared and $700 something for LLC.
|
|
resolution
Junior Associate
Joined: Dec 20, 2010 13:09:56 GMT -5
Posts: 6,980
Mini-Profile Name Color: 305b2b
|
Post by resolution on Mar 25, 2019 8:46:52 GMT -5
With the additional depreciation we can now take on the house put in service last year and the fact we spent so much on that house, we got all our money refunded or will. Made us very low income. We have around $10k depn in the LLC plus about $8k ins and PT, plus various expenditures, quite a bit of charitable giving, told hubs we need to pull back on that, so had little income. So we got $9237 back! We never itemize so I'm assuming, as I don't know that the $25k plus personal helped a lot. We are low income tax payers now! Well last year and this year anyway. Now if it all doesn't go for a hospital bill I can get new flooring. Am waiting till later in the year anyway, to make sure we don't need it elsewhere. We were going to go look at another house to buy, but luckily it was under contract, hubs was all ready. LOL! He would like 10, I don't care, what we have is enough. One day he isn't buying anymore, the next he is. We are supposed to get that back, have not yet. Paid $361 state, $435. getting personal return prepared and $700 something for LLC. I am glad that your taxes came out so much in your favor. You seem to have been really stressed about taxes over the past year. Is there any way you can work with your tax guy to come up with a plan for your estimated payments throughout the year so that tax time is more predicable and a little less stressful?
|
|
Wisconsin Beth
Distinguished Associate
No, we don't walk away. But when we're holding on to something precious, we run.
Joined: Dec 20, 2010 11:59:36 GMT -5
Posts: 30,626
|
Post by Wisconsin Beth on Mar 25, 2019 9:56:58 GMT -5
We seem to have come out ahead. I'm not completely sure how, to be honest. DH does the taxes. We're getting about $4500 from the Feds and another $900 from the state. I got a raise in 2018 and neither of us changed our with-holdings. We did have higher child care deductions in 2018.
I want to say our returns from 2017 were about $3500. DH had gotten a huge bonus and raise in 2017 and the bonus definitely had an impact on the amount deducted.
|
|
countrygirl2
Senior Associate
Joined: Dec 7, 2016 15:45:05 GMT -5
Posts: 16,893
|
Post by countrygirl2 on Mar 25, 2019 10:59:21 GMT -5
I sure was, the year before cost us $35000 in taxes. I'm about ready to have this lady review last years and see if it is correct. I knew it would be a lot, but not that much.
I was pretty sure we would get a refund but just estimated stuff so not that high. Of course, we have received nothing yet. She did e file but wondering if that is all still running behind.
I know next years, 2019 will be the same, but 2020 will be more taxable income. She and I are going to go over it. Hubs is wanting to just take money out of his 401k and pay the taxes and just put in the bank since we are not earning a ton anyway. If we do, need to do it on one of these low income years. Doesn't matter to me one way or another. But this year will be our last chance to do so, as future years will be positive income. Well unless he buys another house, he was very interested the other day, thankfully it was already under contract.
|
|
resolution
Junior Associate
Joined: Dec 20, 2010 13:09:56 GMT -5
Posts: 6,980
Mini-Profile Name Color: 305b2b
|
Post by resolution on Mar 25, 2019 11:17:10 GMT -5
It only took about a week for our return to be direct deposited in our account back in late February.
|
|