Taxes?

[Sociopathicsteelerfan]

(02-04-2019, 08:02 PM)Benton Wrote: I'm taking mine tomorrow to the CPA. Rough calculating on a web site, it sounds like we're going from our regular $300-$500 return to owing $3-$6,000.

Yay tax breaks! 


Considering the thousands we paid in along the way, that's a huge kick in the crotch.

You had a lot of house related deductions I assume?

[CJD]

(02-04-2019, 11:12 PM)Sociopathicsteelerfan Wrote: One of my best friends has a PhD in accounting (he's a college professor) and we looked at that.  If I claim any higher then I'll end up owing at the end of the year.  I'd rather get something than owe anything.  Plus it's like free money.  I get what you mean about the government sitting on it, interest free, but it's really not that big a deal to me.  My retirement is pretty solid, medical insurance for life and I'll be able to retire at a relatively young age with very close to what I make working so a big investment portfolio I can retire on isn't as important to me as a "normal" person.

It sounds like you've positioned yourself very nicely for retirement. Well done!:)

The investment potential of 1 or 2 thousand dollars isn't that big a deal if it doesn't bother you. I just know some people who don't realize that they can adjust how much is taken out of their paycheck, so I figured I'd bring it up just in case.

[CJD]

I just did about 95% of my taxes (still waiting on 2 documents that are taking their time this year.)

I just bought a home this past year, so I was expecting a larger return than normal.

After I plugged all the numbers in, it turns out that, had I bought my home in 2017, I would have been better off itemizing and claiming my mortgage interest but, with the increased standard deduction this year, it is now a better deal for me.

My federal is $358 and my State is $563.

My state return has never been more than 100 dollars before, so that's kind of odd.

My combined return is usually around 200 or 300 dollars.

I wonder what would make my state return skyrocket like that.

[*bfine32*]

As to the return/owe debate:

If you owe at the end of the year the government gave you an interest free loan

If you overpaid at the end of the year you gave the government an interest free loan

It's really no big difference either way (given you're not extremely wealthy) but every little bit counts.

[Benton]

(02-04-2019, 11:40 PM)bfine32 Wrote: As to the return/owe debate:

If you owe at the end of the year the government gave you an interest free loan

If you overpaid at the end of the year you gave the government an interest free loan

It's really no big difference either way (given you're not extremely wealthy) but every little bit counts.

Shockingly, I'd disagree. People, by and large, pay a lot of taxes. And they pay taxes multiple times on the same things. 

The government shouldn't take whatever it feels like and spend on thinks people don't want.

[*michaelsean*]

(02-04-2019, 10:02 PM)BengalHawk62 Wrote: WTF?  That’s my worst nightmare.  How are you not shitting yourself right about now?  We get ours done next Monday and I’m a nervous Nellie about it.  This is our first year filing with a kid so I’m hoping we get SOMETHING back.

If I'm not mistaken again, the kid now does nothing for you.  The personal exemption is gone.  Do you itemize or use the standard deduction?  If you used the standard deduction you will still do better this year by about $4,000 off your income.  

[jj22]

It's really hitting Trump supporters (and even us who knew it was a scam) hard.

https://www.rawstory.com/2019/02/trusted-trump-voters-seethe-realizing-theyre-getting-screwed-gops-tax-plan/#.XFtyAFGYHjE.twitter

If you haven't done your taxes yet (and make less than a million dollars)... Prepare yourself.

[GMDino]

(02-07-2019, 10:52 AM)jj22 Wrote: It's really hitting Trump supporters (and even us who knew it was a scam) hard.

https://www.rawstory.com/2019/02/trusted-trump-voters-seethe-realizing-theyre-getting-screwed-gops-tax-plan/#.XFtyAFGYHjE.twitter

If you haven't done your taxes yet (and make less than a million dollars)... Prepare yourself.

I wonder how this will be the Democrats fault? 

All seriousness aside I read an opinion piece about how Trump supporters were willing to overlook the lies and the firings and the investigations and the indictments and the shady history and the caging of children (and losing some of them) and everything else...THEN they got mad because they didn't get their tax break.

My take is people are dumb.

[*michaelsean*]

(02-07-2019, 10:59 AM)GMDino Wrote: I wonder how this will be the Democrats fault? 

All seriousness aside I read an opinion piece about how Trump supporters were willing to overlook the lies and the firings and the investigations and the indictments and the shady history and the caging of children (and losing some of them) and everything else...THEN they got mad because they didn't get their tax break.

My take is people are dumb.

This could be the end of Trump.  I've never had problem with the fact that cutting taxes benefits the wealthy more, because they pay more, but I don't remember a tax cut by Republicans that actually raised taxes on a lot of middle class and even upper middle class.  The $10,000 SALT cap doesn't really hurt the middle class, but the getting rid of personal exemptions is a killer if you have more than one child.  

[GMDino]

(02-07-2019, 11:21 AM)michaelsean Wrote: This could be the end of Trump.  I've never had problem with the fact that cutting taxes benefits the wealthy more, because they pay more, but I don't remember a tax cut by Republicans that actually raised taxes on a lot of middle class and even upper middle class.  The $10,000 SALT cap doesn't really hurt the middle class, but the getting rid of personal exemptions is a killer if you have more than one child.  

I have an aunt who does taxes (does ours also) and she said no one is complaining.  She does do mostly businesses but I suppose time will tell.

I haven't given her all of our stuff yet. 

[BmorePat87]

(02-07-2019, 10:52 AM)jj22 Wrote: It's really hitting Trump supporters (and even us who knew it was a scam) hard.

https://www.rawstory.com/2019/02/trusted-trump-voters-seethe-realizing-theyre-getting-screwed-gops-tax-plan/#.XFtyAFGYHjE.twitter

If you haven't done your taxes yet (and make less than a million dollars)... Prepare yourself.

"I trusted the guy who made money by exploiting the middle and working class to pass a tax bill that helped the middle and working class and not himself..."

[Benton]

(02-07-2019, 10:59 AM)GMDino Wrote: I wonder how this will be the Democrats fault? 

All seriousness aside I read an opinion piece about how Trump supporters were willing to overlook the lies and the firings and the investigations and the indictments and the shady history and the caging of children (and losing some of them) and everything else...THEN they got mad because they didn't get their tax break.

My take is people are dumb.

It's all about a side getting "theirs." In this case, the largest part of the base is likely to see no change or be negatively impacted, leading to feeling betrayed. 

In the end, most people don't care about fixing things, only some ridiculous notion that it's ok to make things worse as long as it's "equal."

[Mike M (the other one)]

Don't know about you guys, but I went from owing $70 to getting back $2k, would've been $3.5k, but it's my ex's turn to claim our child.
But then technically according to Federal Laws I can claim him every year since he resides with me and there isn't anything she can do about it.

[fredtoast]

I think most people will pay less tax.

[StrictlyBiz]

I haven’t done mine but I always compare the effective rate when it is all finished. Last year I think that it was around 22.9% (it climbs every year and is waaaay more than Uncle Bernie’s rate). We’ll see what this year brings. I’m either going to get soaked the same, a little more, or a little less. Whatever. I’m comfortable.

[Dill]

Will increasing the deficit eventually cost more than some tax money back?

If so, when and how might that happen. I'm not a numbers guy so I'm just wondering.

Someone explained all that back when Obama was president. But I forgot.

[*Nately120*]

I don't care how much I pay in taxes, because I can always just work harder and make more money. The govt could take 90% and I'd just work harder.

[Benton]

(02-11-2019, 01:12 PM)Nately120 Wrote: I don't care how much I pay in taxes, because I can always just work harder and make more money.  The govt could take 90% and I'd just work harder.

Wouldn't it be easier to just change the tax code so that the guy making less than you pays more?

EDIT: To clarify, I'm not saying rich people don't pay taxes. But the last two tax revisions I'm familiar with (federal and Kentucky) were both basically just cutting taxes on upper earners by expanding what was taxed so that the majority of people were paying more.

[Goalpost]

I could have itemized about 9000, but took the standard deduction as a single for 12,000. I got back a little bit more, but not much more. It was positive though. My house interest, real estate taxes which I usually deduct wasn't used.

[StrictlyBiz]

(02-08-2019, 04:44 PM)StrictlyBiz Wrote: I haven’t done mine but I always compare the effective rate when it is all finished. Last year I think that  it was around 22.9% (it climbs every year and is waaaay more than Uncle Bernie’s rate). We’ll see what this year brings. I’m either going to get soaked the same, a little more, or a little less. Whatever. I’m comfortable.

I did mine over the weekend and my effective rate fell from 23.5% last year (I guessed wrong above) to 17.9% this year. Needless to say, my return was significantly more and quite big this year. 

Which brings me to my next point. Now that I did them an familiarized myself with everything again, I see a lot of speculation in this thread and on social media based on actual/anticipated return that shouldn't be. Since income taxes are fluid and contain many moving parts, its a mistake to base everything off of one part, your return. The only way to truly know how the tax law impacted you is to compare this year and previous years Federal Effective Tax Rate. My guess is that most people will see a reduction in their FETR regardless of what happens on your return.