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Here's why your refund may not be as high as you expect under the new tax law
Channel 3000 ^ | 2/06/19 | Christina Lorey

Posted on 02/09/2019 4:00:36 AM PST by Libloather

**SNIP**

2. You might not get as much money back, but that doesn't mean you'll pay more either. Accountants call this year's process easier for the average person. With the new tax law, everyone's filing on the same form. Most people's tax rate is less, too. But that's not all: Your refund check may be less may be less, a lot less, than last year.

Instead of withholding as much throughout the year, the government gave it to the people to spend, which is something not everyone realizes.

"They anticipated for the lower rates," said Tylor Katze of Bennett Tax. "And it's causing people to owe or have a lower refund overall, which they're not too happy about."

**SNIP**

6. Start thinking about your 2019 taxes... now. It's never too early to look ahead to next year's taxes: If you want the bigger refund like you're used to, talk to your tax adviser now and change your withholdings to make sure you don't owe and get more money back in 2020.

(Excerpt) Read more at channel3000.com ...


TOPICS: Crime/Corruption; Editorial; Government; News/Current Events
KEYWORDS: 2018; dsj02; irs; refund; taxes; taxrefund
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To: Larry Lucido

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?


121 posted on 02/09/2019 6:49:51 AM PST by Bonemaker (invictus maneo)
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To: Mr Ramsbotham

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.


122 posted on 02/09/2019 6:50:02 AM PST by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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To: gcparent

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.


123 posted on 02/09/2019 6:50:53 AM PST by stremba
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To: aumrl

You can’t go from a blue state to a purple state that is run primarily by Democrats and expect too much difference. 8>)


124 posted on 02/09/2019 6:51:58 AM PST by Robert DeLong
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To: stremba

What’s name of this 500 credit. First I have heard of it?


125 posted on 02/09/2019 6:54:29 AM PST by gcparent (Justice Brett Kavanaugh)
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To: aumrl

Just don’t die in Pennsylvania with their state inheritance tax.


126 posted on 02/09/2019 6:56:15 AM PST by gcparent (Justice Brett Kavanaugh)
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To: kearnyirish2

oops, sorry ... my eyes saw “under” but my brain read “over”.


127 posted on 02/09/2019 6:57:33 AM PST by CapnJack
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To: jocon307

Mind blowing. Quick interview I hope. Hello, oh and goodbye.


128 posted on 02/09/2019 6:58:32 AM PST by Caipirabob (Communists...Socialists...Fascists & AntiFa...Democrats...Traitors... Who can tell the difference?)
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To: Robert DeLong

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.


129 posted on 02/09/2019 7:00:28 AM PST by aumrl (let's keep it real Conservatives)
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To: CapnJack

No worries; I appreciate all the input here!


130 posted on 02/09/2019 7:01:28 AM PST by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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To: Libloather

Refund = An interest-free loan to the government.


131 posted on 02/09/2019 7:04:58 AM PST by dfwgator (Endut! Hoch Hech!)
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To: Doofer

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.


132 posted on 02/09/2019 7:05:04 AM PST by trebb (Don't howl about illegal leeches while not donating to FR - it's hypocritical.)
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To: All
I've done over 50 returns this year for other people. Wide range of customers. To date, 90% of them have had a lower tax bill this year. LOWER. Maybe 95%.

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.

133 posted on 02/09/2019 7:09:28 AM PST by Mr Rogers (Professing themselves to be wise, they became fools)
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To: aumrl

Property taxes, ins, regulation, corruption, tolls to name a few.


134 posted on 02/09/2019 7:11:20 AM PST by gcparent (Justice Brett Kavanaugh)
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To: 9YearLurker
I don't understand the legal and accounting details very well, but the situations I'm describing fit the following general description ...

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?

135 posted on 02/09/2019 7:13:49 AM PST by Alberta's Child ("In the time of chimpanzees I was a monkey.")
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To: aumrl

Oh I agree, going from deep blue to purple is an improvement, but for how long is the question. 8>)


136 posted on 02/09/2019 7:14:33 AM PST by Robert DeLong
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To: gcparent

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”.


137 posted on 02/09/2019 7:28:38 AM PST by stremba
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To: stremba

I did see it. Ty.


138 posted on 02/09/2019 7:37:19 AM PST by gcparent (Justice Brett Kavanaugh)
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To: Alberta's Child

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.


139 posted on 02/09/2019 7:49:25 AM PST by 9YearLurker
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To: stremba

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.


140 posted on 02/09/2019 8:01:04 AM PST by Openurmind
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