Posted on 12/17/2017 4:43:18 PM PST by springwater13
The Republican tax bill would cut taxes for about 75 percent of filers in 2018. How would it affect you? This chart shows how the bill would affect 220,000 real households. Answer the questions below to find the ones like yours. (The calculator covers only personal taxes. Business owners and investors could also benefit from corporate tax cuts.)
(Excerpt) Read more at nytimes.com ...
Yeah. And I’m sick of hearing it. Talk about class warfare. And it’s coming from supposed Republicans no less. They’re cheering on that some of us are having our taxes going up so they can get more back unbelievable.
OK I was looking at the amount for an earlier year. In 2016 it was $10,350. Starting at that income you had to file a tax return, and pay the penalty. That is still below the 12,000 level. But then again will the 12,000 standard deduction begin in the coming year or not until the next one.
Now reading about the GOP reducing benefits for Social Security and Medicare after they pass their tax shell game. If the GOP wants to cough up POTUS, Senate, and House in 2020, that will do it.
Appreciate the info. Trying to sell various Commercial and Industrial pieces in good ol California and the residence is a farm so don’t get much of a break there either.
The state will screw us on capital gains and doubt that situation will ever change. It is what it is.... Already setting up residence in another state w no income tax. We will be taking at least one of the cats
Thx. JC
Just found this in the Motley Fool
How tax reform would treat dividend and capital gains income
Under current law, investors pay preferential rates on qualified dividends and long-term capital gains. If you’re in the existing 10% or 15% brackets, then you’ll pay a 0% rate. Those in the 25% to 35% brackets pay a maximum of 15% on their qualified dividends and long-term capital gains, while those in the 39.6% bracket pay a 20% maximum tax on that investment income.
Bless DT !!!
Tax shell game. Good name for it. I’m just about done with all of it now. Screw them all.
What you posted is how capital gains are taxed under the current law. So, that’s going to change since tax brackets are different.
Hm... Will keep looking for what if any changes.
It’s not going to get any better than this new tax bill.
Thx
I got a rock...
:(
So, I'm $4,500 behind—net.
Even as a Trump supporter and maxed-out donor, I lose.
:(
And they reached that $24K level by combining the Personal Exemption with the Standard Deduction +/- depending on children. So a married couple with no kids had a $9,100 PE + $12,700 SD = 21,800 total. Great if you don't itemize as you will have $2,200 less taxable income. But for those that do itemize, they start with $9,100 more taxable income due to the loss of Personal Exemptions, then they get less deductions.
So, add $9,100 to your example, making the increase in taxable income $14,100, so at 22%, that's $3,100.
The Child Tax Credit is also reduced by the loss of Dependent Exemptions by $4,050 x Tax Rate per child. So at the 25% rate, your child tax credit is actually being reduced by $12.50.
“Talk about class warfare.”
My wife was talking with some friend, and the friend was complaining about how this bill will protect something like 8 people in some zip code, they are all hedge-fund traders or something, and they will get out of paying something like $24 million dollars of taxes.
I told my wife that sounds like fake news, but that she should have countered with “So you think it is okay for 8 people to have to pay $24 million in taxes!!”
Yep. But for a retired couple in several states, it's possible to have a higher reduction of taxable income under the current tax system, particularly for couples with moderate taxable income (say $75k or less).
If one or both of the spouses are under 65 and the couple doesn't qualify for Obamacare subsidies (which is quite easy to have too much income), the Gold plan premiums are in excess of $900/mo per person. Even the cheapest Bronze plans are in the mid-600s and higher. Medicare plus supplemental plus Plan D adds a few more hundred per month.
Under such a scenario, a lot of the monthly premiums will be in excess of the AGI threshold for medical deductions. Add that to a couple living in a high property tax state, plus the $4,100 exemption/person, plus $1,500/person aged 65 or older, and it's not that difficult to far exceed $24k in income deductions. Don't forget charitable contributions, any state/sales taxes, and/or mortgage interest (if still paying off a loan in retirement).
The bill is actually a list of specific changes that are to be inserted into the actual tax code. In other words, the bill is hundreds of pages of adds, changes, and deletes which can only be fully understood within the context of the existing code. So, if there is no mention of a given topic, you can assume there will be no changes.
About $800 for us - both retired.
Thx for explanation. Appreciated
and its not like property tax or sales tax or state income taxes ever come down....
why are people looking at this long range?...
once rats are back in power, look to pay much much more...
Is there a spending cut yet? Yeah, I didn’t think so. Keep the music playing and re-arrange those deck chairs.
Well, there went that narrative (work ethic).*
Just kidding (sort of), but you have to keep in mind that you are in a small minority. And hopefully an improved economy will increase your chances to make more money.
*Actually, working hard and making good decisions is no guarantee of success, as I have learned to my dismay. I still believe it increases the odds of success, tho', and helps to keep one out of the economic gutter.
Of course, then there's always the question of what is a good decision. Does one stay near "home" to insure someone (themselves) will be there for their parents in their old age, and forgo many opportunities and much income, or go where the grass is seemingly greener?
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