The Trump tax calculator — will you pay more or less?

Market Watch ^ | 11-29-17 | Steve Goldstein et al

[RKBA Democrat]

As the Senate advances on its tax-cut bill while House Republicans have passed their version, MarketWatch has the calculator to show how the bills would potentially impact your finances.

The legislation, called the Tax Cuts and Jobs Act, cuts individual tax rates and slashes corporate taxes, among other things.

But not everyone’s a winner. The mortgage-interest deduction is limited, and state and local income tax deductions are zapped in both the House and Senate plan. The plan from the upper chamber also eliminates the state and local property tax deduction.

The calculator includes the new rates and child-tax credit unveiled by the Senate Tuesday night. It’s only meant to give a look at what happens in the first year after enactment, as the individual tax rates are set to sunset.

[WildHighlander57]

Many thanks for that info; here in Texas we pay the whole amount in October.

[GrandJediMasterYoda]

Yeah remember? Trump saying he wanted to put H&R block out of biz? Same old BS

[MD Expat in PA]

Ok, tax wizards of FR. I usually itemize, but the calculators posted in this thread say I will save a lot if I opt instead for the standard deduction. Are there any tax or accounting rules forbidding me from deciding “hey, this year I don’t wanna itemize”?

No. There is no rule that says if you itemized previously that you cannot opt not to in any subsequent year and the IRS allows you to choose which ever method from year to year that allows you to pay the lower amount of tax. Keep in mind that tax avoidance by following the rules is perfectly legal whereas tax evasion (hiding, not reporting taxable income or claiming deductions you are not entitle to) is not.

In fact, many tax programs like H&R Block Tax Cut, Turbo Tax, etc., lets you enter what you are able to deduct if itemizing and then will tell you if you pay more or less by taking the standard deduction.

[antidisestablishment]

You will both be blessed by your God. Uncle Sam is a poor substitute. Trying to build a foundation on a politician’s promise is not building on sand, but a lake of mercury.

Like arrows in the hand of a warrior, so are the children of one’s youth. Psalm 127:4

[MD Expat in PA]

Adjusted Gross Income - not Gross Income - That is correct. If your only income is from employer wages, you will want to use your “Box 1 Wages” from your W-2 as that reflects your taxable wages, i.e. your gross less pre-tax deduction like section 125 deduction and 401k deferrals plus any taxable fringe benefits like GTL. If you have income from other sources, 1099-Misc, 1099-R, 1099-INT etc., you will want to add that to your W-2 Box 1 wages to come to your Adjusted Gross Income. People need to keep in mind however that Adjusted Gross Income is not your final Taxable Income. Taxable income is your Adjusted Gross Income after either the standard deduction or your itemized deductions.

[central_va]

I save $700.00 a year! Wow! not.

[Boomer]

I still haven’t seen anything on how it will affect social security or SSDI. Anyone else?

[kvanbrunt2]

I pay about 3000 more under the senate bill 2000 more under the house bill. won’t be voting for the tax increasing president next time. maybe i should buy a kid or two.

[RKBA Democrat]

So long as you’re working and pay/owe more than 8000 a year in taxes(2000 Times 4) whether the tax credit is refundable or not won’t impact you.

[RKBA Democrat]

Post of the week. Amen.

[RKBA Democrat]

Curious. Did you base income on your AGI on your tax return or gross salary? You should use the AGI figure.

[kvanbrunt2]

Ok, tax wizards of FR. I usually itemize, but the calculators posted in this thread say I will save a lot if I opt instead for the standard deduction. Are there any tax or accounting rules forbidding me from deciding “hey, this year I don’t wanna itemize”?>>>> they are eliminating the big itemization categories. you don’t have anything to itemize. those are gone. it’s simpler don’t you know. you pay more but it is simpler. no reduction of the IRS spending in the plan. why? it’s simpler don’t you know. /s

[pollywog]

I still haven’t seen anything on how it will affect social security or SSDI. Anyone else?

that is what I am interested in. We have a disabled adult daughter with Cerebral Palsy on SSDI and my husband and I are seniors on SS. Not sure how it will affect us.

[RKBA Democrat]

While you won’t get a whisper of disagreement out of me on telling the gop faction of the uniparty to go commit an impossible act, I have to wonder if you used AGI to calculate what you pay. Curious.

[between_the_lines_mn]

Use your AGI. The new tax bill didn’t change how your income is calculated. The bill changes how your taxes are calculated.

[TMA62]

How does one figure income from sources other than employment such as capital gains? Does it still have to be itemized?

[Antoninus]

As to being refundable, I’d simply rather the incentive for having kids be favored towards net taxpayers, as I think they make more responsible parents.

I'm not sure that's true because many of those who are net taxpayers who can benefit from the credit are two income houses. And in my experience, such households--which consign their kids to daycare and leftist-run schools--are less likely to produce good conservative citizens.

If you want to get really politically incorrect, my feeling is that the credits would be most beneficial for society if they were offered primarily to families with only a working father and a stay-home mother. But then, I'm a throwback.

[LostInBayport]

There is no rule that says if you itemized previously that you cannot opt not to in any subsequent year and the IRS allows you to choose which ever method from year to year that allows you to pay the lower amount of tax.

Thank you for that answer! I think I will be one of the people who benefit from the new tax law. I always itemized but even that sum wasn't too far ahead of the combined standard deduction and personal exemption. Using the new standard deduction will shave thousands off my tax liability if the bill remains unchanged.

[CTyank]

How much do you pay in taxes?

How much do you pay your accountant?

[Nicojones]

A question, though. When will all this take effect? Next year, the year after?

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2018 tax year, so you will see these changes on the tax form you file by April 2019. The form you fill out by April 2018 will still reflect the current tax code.