Posted on 01/07/2018 6:04:57 AM PST by Kaslin
, I took $16K in itemized deductions and a $4K personal allowance. Thats $20K. With a $12K standard deduction, my taxable income will increase by $8K, and my tax will increase by about $1700.
If you have 16,000 in itemized deductions, why wouldnt you take those instead of the new $12,000 standard deduction?
Or is it because they are due to not being able to deduct the SALT?
If so, this will only affect people in a small handful of states. I think you need to work on your local government, it is the problem.
i agree about being strategic to avoid paying taxes. Being retired gives you a lot of options if you are making 401k withdrawals , but those not there yet still have a few. Like IRA contributions. We will be doing that this year, probably not so necessary next year.
Please do some homework or go see a tax advisor.
He hasn’t bothered to see what is in the bill.
In other words, millions and millions of people in several states that are at the forefront of our nations economic growth, and who already pay a large portion of total Federal taxes.
“However, the fact is that a significant number of people with a not-so-high income will pay more.”
No, that is NOT a fact.
That is idiotic liberal propaganda for the feeble minded to believe.
“my taxable income will increase by $8K”
Not with an additional $10,000 SALT deduction. Your taxes would DECREASE.
See posts 14 and 15.
Retired Army 1099-Rs have been available at the MyPay website since December 18th.
Also, your retiree account statement has been available on the MyPay site since December 29th. It reflects the same pay raise as the military received, 2%.
Thanks, very informative.
There is an income band that will not see their reduced deductions offset by increased ROI.
I’m single and in CA. This is a good move for the country, but this will cost me.
“Hardly anyone below 100,000 will itemize because the standard deduction is doubling.”
Just that factor, even if we don’t get a reduction in taxes is worth it re not itemizing our deductions.
So far all of our younger/hard working adults in our family/both sides, will get refunds except for one family. He and his wife make a lot of money and purposefully use/make less monthly deductions to over pay their withholding to get a refund which they treat as a bonus. They maximize their 401k’s, IRA’s and kids college funds and have enough left over to do the higher withholding overpay due to the low interest rates/cds.
My wife and I plan to get a reverse mortgage to pay off our first and second and then take the standard deduction.
According to our CPA, that will not only increase our monthly net $’s a significant $ amount. It will enable us to get a pretty good refund with the new rates. Also, we will not need him any more and will save us about $500 in his fees each year besides eliminating the paper collection hassle.
Sounds like my widowed mother-in-law, she is in similar income bracket and figures her taxes are going up as well. How can you screw up a tax cut? Ask the GOPE, they screw up everything they touch.
Although I don’t know your exact situation, what’s stopping you from continuing to itemize the 16K? Then, there is only a 4k difference (instead of the 8k you mentioned), and with the 3% lowering of the tax brackets it seems you would still come out ahead (or at least break even).
We are in a similar situation, but once I actually sat down and crunched numbers, we basically break even or ahead by $100-200.
There is still so much bs about this tax cut.
So lets make it simple.
If you don’t pay less taxes after the plan, just vote for another Deep State Democrat congress and eventually for Clinton or whomever the socialist rat is running for president.
If you do pay less taxes, share some of it with the Salvation Army, Free Republic, your church and your family.
Then, remember the negative ones, anyone, who lied about the new tax law and never trust them again. That applies to people on the internet, the media and in your life.
If they lied about this tax plan, why did they lie? Then, again, never trust them on anything.
Next, vote for more republicans and Trump again 2020! To say thanks for your tax cuts.
I could see someone who makes the same as me but bought a much more expensive house (bigger mortgage and property tax) could end up paying more.
You correctly point out that the winners and losers in the tax bill have to do with itemized deductions. Since we don’t have a business and cannot take advantage of the lower business taxes. In my case my mortgage and state taxes are under the limits so I can still deduct them. My big deduction has always been medical expenses. That was not changed (except for a lower threshold) so I can still use all my itemized deductions. This amounts to 41 K which exceeds the 24 K my wife and I will get when I cannot itemize. So for the near term I get a lower tax because of the lower rates.
I also benefit because our son will prosper in the lower corporate economy even though he did not support Trump.
The truth is that taxes always hit some more than others. The government should get out of the business of helping us decide what to do with our money. I personally would prefer a flat sales tax instead of an income tax. But for now I will enjoy the extra money and continue support for Trump.
You are being a drama queen.
I doubt if ‘millions and millions have both the income to be paying high state income tax and own a house that has a huge property tax. $10k is still deductible.
You’ve been whining all over these threads for a month now. It’s time to pull up your big girl panties and address the REAL problem - you chose to live in a liberal state.
Federal and state income taxes should never have been mingled. Liberal states should take the full responsibility for their taxes, not depend on deductions to make them more palatable.
I’m sorry you’ll pay more in taxes. Perhaps expend the time you spend here on every thread instead put to good use educating your neighbors about how other states live within their means. Our county just cut spending for next year because their revenue dropped. Conservative states handle money matters in wats that benefit, not gouge, their citizens.
However, the fact is that a significant number of people with a not-so-high income will pay more. Singles and retirees are particularly likely to end up owing an additional $1000-3000 on incomes under $100,000.”
That’s where I am. Since I cannot now deduct my big home equity loan I will pay about $2,000 per year more. I save some tax money on the new rates, but the lack of home equity deduction counteracts that savings, adds more taxes, and I pay more.
The bright spot, though, is most of us with big home equity loans also have a stock portfolio and since Trump was elected I have made several times over this additional $2,000 extra tax I will have to pay. Boosting the earnings of the corporations will increase the market even more.
That is useless to most filers, because they won't be able to itemize. Even the Steve Mnuchin said they expect 94% of filers to not itemize because of the changes to the tax law.
Youve been whining
No, you are whining. I stated my opinion very succinctly and without emotion. You however.......
Federal and state income taxes should never have been mingled
What is this "mingled" you keep referring to?
People have to pay local, state, Federal, and other taxes, and have done so for decades, and decades, and decades in this country. The 1913 law disallowed double taxation on taxing people at the Federal level on money they are already taxed upon by states. The Federal government itself at the time declared it would be "immoral" to not do so. And here we are....today.
And yes, this law affects millions of people who will now be paying higher taxes, and the number will increase even more in the out years.
Why don't you just admit that?
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