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 ...
Absolutely, I’m in business and have to do mine quarterly and supposed to send estimated prepayments. But because my wife and I file jointly I only send it at the end of the year. They have never mentioned it so I’m going to keep doing it. Like you say... Why loan them money interest free when it can be my business working capital.
Maybe you can find a few random strangers on the street who is willing to become your “dependents.” :-)
I got about the same return as last year....,.BUT, the tax on my monthly pension check was reduced by approx. $56 per month....So that was about $600 more in my pocket for the year.
There is a decent argument against that particular break, and if they had only phased it in over time it would have been okay — especially if they had dropped the material rates in offset.
But what did they put in there? A huge tax break, for example, for the class of Javanka’s pals in Manhattan who hire expensive nannies and send their kids to expensive private schools.
Likewise, they supposedly were helping inner-city blacks with ‘enterprise zone’ legislation. But what they really did was provide big tax breaks for big slumlords—like the Kushners.
Trump also campaigned on totally eliminating the estate tax, which would be a massive boon to families like his, though Congress only allowed a doubling of the exemption to $11M to get through.
I agree - the public schools are ridiculously expensive. My point was the difference between an area with high property taxes of $10,000 and an area with property taxes of $20,000+ is that the latter is all-white.
It wouldn’t help; the concept has been eliminated altogether in terms of personal exemptions. They have created a class where you can claim people you care for, but it doesn’t have the same weight as a child (and you have to provide SS numbers - they probably have dozens of people listing them as “dependents”).
“”Never owed a cent until this year and it was over 400 dollars!””
Last year I had to pay 14,876.00 on top of payroll deductions for the wife and I and your complaining? I haven’t had a refund in over 25 years!
I live in one of those high tax areas. If you can afford the house and willing to pay the taxes you can move in no matter your color. Unfortunately, small homes in not so great school districts have high taxes too. It’s why they are re assessing taxes.
The problem is that the scenario I laid out will play our across all fifty states; while more people may be hurt by the SALT limitation in the six states you describe, people in all 50 states have lost their exemptions - therefore more of their income is taxable, and it is a question as to whether or not the increased standard deduction and/or child tax credit offsets the loss of those exemptions.
Again, I wasn’t hurt by the SALT cap, but by the loss of exemptions - and I suspect many more people are going to be furious when they realize the “raise” they received last February was a hoax - they’ll pay that back and more.
I had to laugh at the 400 too. That’s rounding.
What I'm noticing is that there seems to be more real estate development activity involving old, decrepit properties that have been owned by the same families for decades. These aren't exorbitantly wealthy families, either; they just own a lot of property in areas that are now run down. I suspect there will be a lot of capital gains tax implications for the economy as a whole as these projects move forward.
Yeah, they reduced my witholding and I didn’t really notice that it happened. So, my 4th quarter estimated payment was a little higher. Whatever.
What I can also say is that when I plugged my 2017 numbers into my 2018 tax software, I would have paid $1800 less in taxes, all else being equal.
Thanks President Trump!!!
Real estate is overwhelmingly the asset class to be affected—and by far it is the really big landlords in those areas, like the Kushners, who will benefit.
Again, Trump wanted to eliminate the estate tax totally up through the billions level. Congress just wouldn’t allow him to go nearly that far.
You’re right that you can move in regardless of color, but in the end they remain white (and are starting to see Asians move in as the replacement white-collar Americans).
Re-assessments happen in my area to root out illegal apartments; the old housing stock (primarily detached single-family homes) is a poor fit for today’s economy (increasingly childless adults with his and her dogs), so many people are converting them illegally into multi-family homes. Parking becomes a nightmare, and the municipalities turn a bling eye to illegal invaders just to keep the classrooms full. The “no overnight parking on any street” seems to do a good job in stemming this destruction of some towns; people don’t want to liv in illegal apartments if they can’t have a car and the suburban location makes mass transit less than ideal.
I file quarterly tax payments instead of withholding payroll income, and it will be interesting to see how my business deductions line up against the personal exemption. I'm fortunate that I still had some sizable business expenses from 2017 that I could carry over to 2018, but I suspect that it would be wise to bump up my quarterly estimates for 2019.
Exactly. I don't get why people get excited about losing interest on their own money every year. Of course interest rates for the average schmoe's savings account being somewhere between .01% and .08% it is literally chump change.
Still, why not keep your own money up front and invest?
Quarterly estimates are not prepayments, they are a substitute for witholding. They are required by law. I'm surprised the IRS isn't hitting you with interest and penalties.
The IRS did adjust withholding - they withheld less (the fake “raise”) on the assumption you’d pay less (and some people will). Even having employees complete W-4s without seeing the specifics would’ve been useless; those adjustments are happening now as workers see where they stand with the new law (I told co-workers I’d have to adjust, but didn’t know yet how much - didn’t know the impact yet).
I’m unsure as to how it effects businesses. I believe the personal exemption was slightly over $4,000 apiece.
>many people with multiple teens is
For clarity, you’re talking multiple dependent persons 17+ as of 12/31/18, not a 13, 14, and 16-year-old, If so, you’ve got a smaller $500 credit going.
Also, somehow, none of these are studying and getting the AOC or LLC credit. That’s not exactly a common situation for the regular folk, and AOC credit only stops at 160k income.
If all of that is true, In that income you should have a tax guy who knows more than my 30-second search turned up.
Thanks for all the concern on our behalf.
That’s interesting, because in my area it seems like the affected assets are primarily industrial in nature — where the typical project under consideration involves the sale of a property AND a business that’s been occupying it for 2-3 generations.
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