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.
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.
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.
Sam Kinison once had a skit where he told a starving Ethiopean to move where the food is. Try moving away from CA to a state where the taxes are lower. SALT has been a federal subsidy of high-tax states for decades. Now maybe the voters, feeling the true cost of those taxes, will finally elect politicians who do not blow boatloads of money on illegals and trains to nowhere.
Perhaps if you leave the socialist country of California for Texas or Florida you can eliminate those SALT hits altogether.
you must live in a high tax liberal state. Blame them.
I think it’s wait and see. The brackets are a bit different and the rates in each bracket are a little lower.
I lose a net $10k in itemized deductions and the $8.2k in personal exemptions, with no kids, and my taxes are still going down $3.2k next year vs what they would have. The sky is not falling. Only 5% of people will see higher taxes next year, and nearly all are $200k+ income earners in 2 states. Standard deduction is not meaningless when its $24k of deductions (I was itemizing about $35k).