Posted on 01/06/2018 11:00:36 PM PST by lowbuck
Debating public policy is fair game. Whether or not we should build a wall on our Southern border will have diverse perspectives and warrants discussion. . . snip
In the meantime, even the left of center Brookings Institute’s Tax Policy Center states 80% of Americans will receive a significant tax cut. . . snip
So, let’s review. You live in Kansas and both you and your spouse work. You bring in about $95,000 from your two incomes and you have two kids. You will have about $2,400 less to pay in taxes in 2018, not to mention a much simpler tax return to file saving you hours of time and a fee from H & R Block to file it.
(Excerpt) Read more at townhall.com ...
Looking ahead to next year, I can see that doing my taxes (and they are not basic) will be much, much easier and I will pay LESS in taxes to the federal government. What is not to like?
My Federal taxes drop quite a bit.
Get ready for the state tax cretins to invade this thread.
If so, Them be the "breaks of Naval Air"! (What we always said in a younger life when things did not go our way. Translation: Grow up and do something about your beef.)
Of note: with the tax reform act I am seeing more and more articles noting that BEFORE the law was passed a major trend was underway with folks moving from high-tax, poor service states to low tax, responsive governmental service states. I recall that one was Tennessee.
Stay warm during the latest bout with global warming!
I’m sure it was. I am in NC now but it still saves me money.
The tax in TN on sales is 9.75 on everything.
In NC I pay about 3.5 income and 6 on non-grocery. 2 or so on grocery. I have 2 mortgages that have 3500 a year in total govt cost.
Trumps plan takes me back to the 1040-EZ.
From what I understand, anyone who works out of town and gets per diem will not only be taxed as income but there is no more deduction of expenses that per diem pays for. Non-reimbursed employee expenses will no longer be a deduction option for tens of thousands of construction workers who chase shutdowns and turnarounds.
save
Does this mean that employees who travel on company business (courses, safety inspections, etc.) will either not have expenses reimbursed or reimbursed and taxed?
Doesn’t sound right.
7. Job Expenses and Miscellaneous Deductions subject to 2% floor. Miscellaneous deductions which exceed 2% of your AGI will be eliminated for the tax years 2018 through 2025. This includes deductions for unreimbursed employee expenses and tax preparation expenses. To be clear, it includes expenses that you incur in your job that are not reimbursed, like tools and supplies; required uniforms not suitable for ordinary wear (like those ABBA costumes); dues and subscriptions; and job search expenses. These expenses also include unreimbursed travel and mileage, as well as the home office deduction.
https://www.forbes.com/sites/kellyphillipserb/2017/12/20/what-your-itemized-deductions-on-schedule-a-will-look-like-after-tax-reform/#6defe1746334
...make a $1,000,000 salary you are going to pay more...
Isn’t this what the Democrats and liberals have always wanted?
The state and local tax deduction issue really exposes how much the high tax Dem states were hiding their high tax rates behind the federal tax deduction schemes but also gives the lie to the notion that these states “pay out in federal taxes” more than they get back. They were getting the fed taxes back indirectly thru the “ we tax you high while you get it back thru the fed tax deduction so you can spend it here and we charge high state sales taxes on what you buy “ scheme!
No wonder why Cuomo and others were thinking of issuing a constitutional challenge to the new tax bill....this new tax bill has left these states’ confiscatory taxing schemes exposed as the scams that they are! Cuomo should also beware of what he is asking for...as a dim possibility exists that some court, in order to make things “truly equal”, may decide to take the states and local taxing powers completely away so that the Feds can “ equally “ spread out all remaining monies hitherto not controlled by the Federal government!(/s on that last line but...ya know...we have such monstrosities as the EU in the world so anything is possible).
Reimbursement by expense account won’t be taxed. We are talking about per diem and out of pocket expense not being deductible.
Yes. I understand that.
My understanding is that if you are self-employed, a sole proprietor and eligible to file a schedule C, those deductions are still in place. The deductions that go away are those for un-reimbursed employee expenses who do not file a schedule C.
Say your employer requires you to have and maintain a professional membership, in my job that might be a SHRM or American Payroll Association membership, but doesn't reimburse you for it, if you itemized on your tax return, you could deduct those expense, but now, no more. Say your employer makes it mandatory for you to attend some conferences or training seminars. They pay for the conference but not for the travel expenses, not for your mileage or for the hotel or your meals while on travel, you can’t if you itemize take a deduction for any of those unreimbursed expenses now.
In my experience however, it would be very rare for an employer to not reimburse an employee for those type of professional or travel expenses.
Yea, I actually read through the linked article after responding. These changes are only on the 1040 (maybe Sched A). They do not affect deductions on Sched C, E, or F.
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