I am completely ignoring state income taxes, which I estimate will be less than $1,000 for us next year. What's dinging us is the loss of the deduction for medical expenses.
The premiums for an under 65 retiree plan plus Medicare, Medicare supplemental, and Plan D. along with minimum expected costs, is estimated to be over $12K. The deductible part of that expense, plus nearly $10K in property taxes, plus the mortgage interest (last third of the loan) doesn't get us to $24K.
Under the current plan, when the personal exemption is added in, we end up with a bit over $9K more in deductions. Even with the higher tax rates, we would still end up with $600-800 more in our pockets.
Retiree couples from high property tax states, like California, New York, Texas, Florida, etc., very well will see less money next year.
“What’s dinging us is the loss of the deduction for medical expenses.”
Yeah, they should not have messed with that. I can see the validity of not mingling state and federal taxes, but the medical deduction? There’s no excuse for taking that one away. When people have high medical bills, it’s the only thing that can help them. And these days - a lot of us have high medical bills! Medical costs are outrageous. No matter what state you are in. This could ding people anywhere.
we can't really move...we have a forever place...5 acres with a big shop with a walk in cooler and meat shop...a garden....trees...
but eventually we'll be forced out due to taxes....