Haven’t heard nuch fron Freepers affected by this.
Would like to hear more from them.
I lost $10,400 in SALT deductions. My son also turned 19 so I only got a flat $500 for him. Over all it hit me for between $1500 and $2500.
It seems the flat $24,000 standard deduction did not completely help me. It is hard to figure it exact.
Since my son is now in college, I was able to get a $2500 off my taxes this year. So I have made a change to my W-4 to withhold $300 more per month to make sure I do not owe next tax season. I live in Pennsylvania and I am sure people from New York and other high tax states are getting killed. It had to be done so I am not too mad, my former employer (a Wall St bank) kept the tax cut and gave next to nothing to the workers. They also laid off hundreds of workers and I was one of them.
I live in Idaho. The cap cut me short by $3700. My income tax alone exceeded to $10k so my property taxes meant nothing.
Here in Washington state I itemize and my mortgage tax is more than $10,000. I have a home equity loan with significant interest which according to my bookkeeper I can write off since it is not home improvement. I am anticipating that showing that it is home improvement could be an item that would have to be proved.
There are other changes in the code, some that would save me some money but others that take away something.
I anticipate that the new code will cost me about $2,000 a year more. I live in a communist state with mostly mild weather, lots of water and beautiful mountains.
I will pay more but more folks are working and those in the heartland with less water and more extreme weather should not have to subsidize my life in a lovely but communist state.
I don’t fully understand it since I live in NJ, one of the highest tax states in the USA but somehow I’m paying less in taxes even without being able to deduct SALT. I changed accountants this year because my old one retired. Maybe he should have retired years ago. I am going to go through the returns tomorrow but I think it has something to do with changes to the AMT phaseout being raised which but I suppose I’ll see.
...Retired, laughable pension, modest portfolio, California: Screwed.
Would like to hear more from them.
I'm self-employed. I have been paying more in taxes every year since the 2008 financial crisis/economic meltdown -- because I have been earning more money each year.
I usually write out 10 checks to the state and feds each year. 4 quarterly estimated tax payments, and then balances due in April. (Do I need to say I'm a conservative?)
My accountant sketched things out when we did our taxes last year. If my income had remained the same, I would have paid less in taxes. We have a fairly small house so we loose some deductions, but not a lot. (My college is a looser here.) One effect of tax reform is that it is very unlikely now that I will ever buy a larger house here in New Jersey. Maybe in a low-tax (and preferably warmer) state, but not in New Jersey.
The rest of the country shouldn't need to subsidize the profligate spending habits of politicians in the Blue States. Yes, I'm cheering it on. "Let 'em burn!"
It increased my overall tax burden a bit, changed my return by about 900 bucks less than the previous year, but I’m fine with that - less of my money the gov gets to use tax free for a year.
NJ here, went from $16,000 to $14,000 federal refund this year (I know, I know, never got around to changing witholdings, always seems to get forgotten about after February) with an average $75-$100 more in the paycheck each week, my “crumbs”. Seems to have worked out better, property taxes aren’t terrible for the state at $6,500 and now we’re 18 years into a 30 year mortgage and the interest payment is less. Standard deduction worked out better than itemized.
I'm one, so I'll give you a little background. I'm now partially retired, after working for the last 57 years, and paying income and Social Security taxes the whole time. I worked my way through college, and had, and have, a good job working for corporations. The reason I'm affected by this is that I own two houses. I have actually built three houses, each with my own hands. While working and raising a family, I also built my own homes, one for year 'round living, and another a 'cabin', though it was capable of full time living. For this, we lived paycheck to paycheck for most of our lives. This was not because we were poor, it was because there was always a major project needed for the houses, for which we had no mortgages.
We're no longer living paycheck to paycheck, but we own two homes. This makes our real estate taxes higher than the SALT limit.
I'm not complaining. Because of the higher deductions, though, our actual tax bill is less than last year.
But all should BEWARE. Just because your tax bill this year may not reach the SALT limit IT SOON WILL. There is no inflation adjustment. Just as the AMT was targeted for only 400 people when it was implemented, it soon hit millions. The SALT limit is exactly the same. Every 'tax cut' since President Kennedy's in the 60s had the short term benefit of reducing middle class taxes. However, they had the long term effect of eliminating taxes from lowest paid workers, and moving more middle class tax payers into the higher tax brackets through inflation. Now, half the workers in the US pay no taxes, and the middle and upper paid workers pay it all. This gets progressively worse as each 'tax cut' is passed. I guess that's why the Democrats call themselves 'Progressives". Those paying no taxes vote for them, and they always put progressively more workers in the no tax bracket making the rest of us pay more.