Posted on 12/21/2017 10:53:13 AM PST by C19fan
Personal Exemption
A personal exemption is the amount that you can deduct from your income for every taxpayer and most dependents claimed on your return. Current law: $4,050 per person, which means a married couple with two dependents would receive a personal exemption of $16,200. New law: The personal exemption is eliminated. The exemption returns after 2025.
(Excerpt) Read more at factcheck.org ...
They doubled the standard deduction, which ends in 2025. They eliminated the personal deduction, which begins again in 2025. So basically they just added the personal deduction to the standard deduction and called it a tax cut.
Yeah but isn’t 5he standard deduction doubled possibly for both of you? Plus, why should I be subsidizing your kids? I really don’t like it when people whine about what they PERSONALLY get from the government. That’s what Liberals do. Some will win ... Some will lose. If you lose a little, that doesn’t make it bad policy. You have no right to ask me to subsidize your kids by you getting an exemption. So there :-)
I figure for me personally, it’s all a wash in the end, what matters more to me is the impact on the economy. I’m hopeful this will spur it.
But what we really need to focus on is cutting spending, and I don’t see that being addressed. But for now, I’ll take what I can get.
I just heard the same from my R Party county chairman. His taxes will increase, by $1000.00 on one dependent, if he understands what he has read, so far.
Is this across all income brackets, I wonder? For example, I’m thinking about a single parent with a child or two, that’s a big loss.
Fake news, unfortunately from our side.
Thanks a lot GOP butt lickers of Chamber of Commerce. You just increased the base of my taxes by $16,200. That one item just increased my tax bill by over $3,500.
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Now the rest of the story.
The Standard Deduction doubles to $24,000 for M, or 12000 if S.
Plus
Doubling of the child credit to $2,000 with $1,400 of that being refundable.
This.
Not only did the child credit double, the phase out is much higher, meaning more people get the full credit. Unless you actually calculate out your taxes, picking on single points is meaningless.
Kids are gone.
We lose a huge amount of SALT deductions.
Standard deduction increase is meaningless if you itemize.
Loss of personal exemption is huge for us.
Bracket adjustments are trivial and do not compensate.
We are royally fked in the very year we retire and go fixed income. 45 years of careful financial planning thrown in the ash can.
I am SO glad we have Republicans otherwise we would have been royally screwed...NOT. In all my years, Democrats never even proposed a tax hike like this.
Changes of this magnitude should always be phased in but never are.
Our only hope is this extends the bull market a few years and we are smart enough to bail out before the next crash hits.
"Increase the base, cut the rate"
You'll be okay, C19fan.
In most cases, the near doubling of the standard deduction should make the loss of the personal exemption moot. But there are instances where it won’t be true, particularly for those who itemize well over the current standard deduction (ours is one such scenario).
If you check the standard deduction it is increased more than the old standard deduction plus personal exemptions.
Try This to see:
http://taxplancalculator.com/
Yes. They removed the individual exemption while doubling the standard deduction. They also increased the deduction for kids to compensate for large families. It did NOT increase your tax bill by over 3500. You need to judge it by the WHOLE.
This is only partially true. What they did was eliminate the personal deduction while increasing the standard deduction.
The bottom line is that they are trying to do away with deductions to simplify it. For my wife and I, who are empty nesters and don’t itemize, we will pay less tax. For those that Itemize, they will pay more since they are losing the individual deduction. Some will no longer need to itemize because, though their itemized deduction used to be larger than the standard deduction, it may no longer be. These are the people who’s returns are now “simpler”, though they may end up paying more tax.
The big win in this tax plan is the elimination of the personal mandate for obamacare. However, this simplification will clean up taxes and put states on notice that squeeze a lot of money out of their citizens that the citizens can deduct from their federal taxes. That “gimme” is much reduced.
This really is a simplification of the tax code. Rates are lowered and deductions are eliminated. Kinda reminds me of Reagan.
Yep.
Personal exemption eliminated but standard deduction almost doubled. For people that itemized, it may be a net increase in taxes. In fact, that is why places like California hate it. But if you don’t itemize, you will almost certainly come out ahead.
Really? Isn’t a doubling of the personal deduction effectively the same?
You don’t have kids at home if you are retiring and if you do, kick them out on their @$$es.
If you have enough to itemize, you are already getting more deducted from your income than the average American. So suck it up.
I’ve almost never been able to itemize. If you do it normally, then your deductions from your taxes have outweighed mine for years. Don’t expect me to cry for you.
Agreed on the spending part. As usual, citizens get the government they deserve ... if the US won’t elect enough fiscally responsible conservatives to push that kind of legislation through ... then either we all go down together as a country in the future or some of us split off peacefully or otherwise.
Pretty much describes our situation, although we aren't losing much of the SALT deductions. The kicker for us will be the inability to itemize our medical expenses. One of us is on an under 65 medical plan, and those don't come cheap, especially for those who aren't poor enough to quality for ACA subsidies. We also lose the additional personal exemption of $1,500 for being 65+.
It would have been nice to throw retirees a bone by raising the income threshold when Social Security becomes taxable. It doesn't take much income to find 85% of your Social Security being taxed.
You are forgetting or are unaware that the standard deduction was massively increased to 12K per person and the AMT was effectively removed as well. Do some homework before spouting off.
That Forbes article is from September. I doubt it is still valid.
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