Posted on 02/09/2019 4:00:36 AM PST by Libloather
Who in the world could come up over the years with such an abominable abortion called the Internal Revenue Code than the filthy poiticians called congress?
Others have made the same comment, but none has explained how that relates to my federal income problem. I benefit a bit from the increased standard deduction (so NJ property and income taxes are moot); this is a problem of taxable federal income increased by eliminating exemptions under the new federal tax law.
ALL dependents qualify for the credit for other dependents. This is new in 2018 and is a $500 credit for anyone you can claim as a dependent regardless of age. Between this new credit, the increased standard deduction, and lower marginal rates, most taxpayers will have a lower overall liability this year. Obviously, with any change in tax law, some will be negatively affected; you may well be one of those. It isn’t as many as you think though.
You can’t go from a blue state to a purple state that is run primarily by Democrats and expect too much difference. 8>)
What’s name of this 500 credit. First I have heard of it?
Just don’t die in Pennsylvania with their state inheritance tax.
oops, sorry ... my eyes saw “under” but my brain read “over”.
Mind blowing. Quick interview I hope. Hello, oh and goodbye.
Politics and party control and tax laws can change in any state.
I made the right decision
Pension not taxed.
Lost my NJ rep congressman - elected a good Cons here.
Purple is not blue.
If my breakfast wasn’t ready I could list many more positives for abandoning my lifelong residence in the garden state.
No worries; I appreciate all the input here!
Refund = An interest-free loan to the government.
I’m 66 and retired - had about $800 less tax burden this year.
Paying $400 and paying more taxes may be two different things - I use one of my retirement accounts to balance my taxes so i am within a range of owing or paying under $500 - last year I paid over $900 and decided to not change the deductions from my balancing account - this year I paid $136.
And about half are getting larger refunds. Doubling the child tax credit more than compensated for removing the personal exemptions for most families.
I am seeing much lower withholding this year compared to last. Most of the folks getting smaller refunds are doing so because their withholding was so much less, which also means they had more income every month for the last 12 months.
All of this experience is in Arizona. Your state may vary.
Property taxes, ins, regulation, corruption, tolls to name a few.
1. Family-owned business that's been around forever. Located in a faded small urban area in a larger region that has a lot of wealth.
2. Reasonably profitable, but not an ideal credit risk.
3. Closely-held ownership with limited options for internal succession.
4. The family owns both the business and the property.
5. They're looking for financing options to expand the business.
Apparently the new tax code gives this type of situation some interesting options. The family and outside investors set up an outside structure like a partnership or closed corporation that takes ownership of the property. The investors contribute cash. The family either sells the property to the new ownership structure or contributes the property in lieu of cash. The new entity then dumps a ton of money into the property to expand and improve it, and leases the improved property to the business.
I'm sure I missed some key details, but this is the gist of the conversations I've been hearing in my circles. There may be 1031 exchange implications here, too?
Oh I agree, going from deep blue to purple is an improvement, but for how long is the question. 8>)
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
Check page 6 of the link. I believe it’s just called “credit for other dependents”.
I did see it. Ty.
Interesting.
If so, just another windfall for the current property owners in the area. When you’re already a business and property owner setting up a shell corporation to get tax money from the feds, Joe Average is getting screwed once again.
There have been studies showing that the poor are helped better when such giveaways are given outside of such constrained geographic areas. Which makes sense. The government is not a great allocator of any economic resources. Certainly not good at deciding where businesses should be sited and invested in.
Is Your Qualifying Relative
Your Dependent?
A qualifying relative is a person who is your...
Son, daughter, stepchild, foster child, or a descendant of any of them (for example, your grandchild)
or
Brother, sister, half brother, half sister, or a son or daughter of any of them (for example, your niece or nephew)
or
Father, mother, or an ancestor or sibling of either of them (for example, your grandmother, grandfather, aunt, or uncle)
or
Stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.
or
Any other person (other than your spouse) who lived with you all year as a member of your household if your relationship didn’t violate local law. If the person didn’t live with you for the required time, see Exception to time lived with
you, later.
AND
Who wasn’t a qualifying child (see Step 1) of any taxpayer for 2018. For this purpose, a person isn’t a taxpayer if he or she isn’t required to file a U.S. income tax return
and either doesn’t file such a return or files only to get a refund of withheld income tax or estimated tax paid. See Pub. 501 for details and examples.
AND
Who had gross income of less than $4,150 in 2018. If the person was permanently and totally disabled, see Exception to gross income test, later.
AND
For whom you provided over half of his or her support in 2018. But see Children of divorced or separated parents, Multiple support agreements, and Kidnapped child, later.
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