Larry Posted February 14, 2019 Share Posted February 14, 2019 (edited) 2 hours ago, The Evil Genius said: Maybe. Strong middle class for the region, definitely. Have you looked at what's considered lower class income in the Bay Area now?A family earning about 117k (according to Fortune magazine) a year or less. 50 minutes ago, techboy said: Oh, I know. On one of the personal finance boards I frequent there was a younger woman making 185k and asking about buying in the Bay Area. The consensus was she couldn't afford it. Still, a family making 117k in the Bay Area is very unlikely to have 24k in deductions, and almost certainly doesn't own, so probably no 10k in SALT either. Just pointing out: Quick Google search yielded this Wiki article: San Francisco: Median household income: $78,378 Median family income: $93.391 (It's a list of counties, which might not be the same as the city limits, I don't know. But then again, the discussion was "Bay area".) So that $117K you two are throwing back and forth as "lower class income" is comfortably north of the median. (And $185 is double it.) My un-statistically-calibrated gut suggests at least 60th percentile. Edited February 14, 2019 by Larry Link to comment Share on other sites More sharing options...
The Evil Genius Posted February 14, 2019 Share Posted February 14, 2019 (edited) As I originally said, it was per a Fortune magazine article. http://fortune.com/2018/06/27/bay-area-six-figures-housing-hud/ In the Bay Area, Households Making $117,000 Are Now Considered Low Income For a household of four people living in the counties of San Francisco, San Mateo, or Marin, the department’s recently released definition of low income limits is now set at $117,400—the highest in the nation. The median family income in the area is $118,400. The HUD also now considers households of four earning $44,000 to be “extremely low income,” while households of four earning $73,300 are considered “very low income.” A one-person household is now considered to be low income if it earns $82,200. Also as a general rule, up to 9 counties (not just City and County of SF) can claim Bay Area here. Edited February 14, 2019 by The Evil Genius Link to comment Share on other sites More sharing options...
Larry Posted February 14, 2019 Share Posted February 14, 2019 Maybe the disparity is due to "family of four" vs "household" or "family". Oh. Also note the Wiki is from 2014. Assume it's gone up. But I note that even that article defines "low income" as "1% below median" Link to comment Share on other sites More sharing options...
tshile Posted February 14, 2019 Share Posted February 14, 2019 3 hours ago, The Evil Genius said: Also as an aside...what's the argument again for federally taxing state income tax refunds in the following year? You pay x in state taxes every check x is on your w2 and what you filed. If you overpaid paid you got a refund of y. Y should have been taxed, because it wasn’t money you used to pay taxes, but you were t because it was marked as part of x on your W2 i imagine if you owed state it’d go the other way. Link to comment Share on other sites More sharing options...
The Evil Genius Posted February 21, 2019 Share Posted February 21, 2019 On 2/14/2019 at 12:40 PM, The Evil Genius said: Our last 4 tears effective tax rate (not including this year since it's not known at the moment). 2014 - 13.34% 2015 - 13.45% 2016 - 12.41% 2017 - 12.81% 2018 - ???? 2018 - 13.84% Lost almost $11k in SALT deductions. 😡 Not sure if it will change in my favor when I figure out married filing separately. Seriously doubt it will since California is a community property state. Link to comment Share on other sites More sharing options...
PleaseBlitz Posted February 22, 2019 Share Posted February 22, 2019 All of you whiny jerks complaining about paying higher taxes should just suck it up because huge banks are rolling in profits thanks to their tax cut. https://www.americanbanker.com/news/bank-earnings-more-than-double-thanks-to-tax-cut Bank earnings more than double thanks to tax cut Quote WASHINGTON — Bank profits remained near historic highs in the fourth quarter — at $59.1 billion, they more than doubled from a year earlier, the Federal Deposit Insurance Corp. said Thursday. That 133% increase, however, was mostly attributable to the 2017 tax law, both because banks had to take a one-time charge in the fourth quarter of that year as a result of a decrease in value for deferred tax assets, and because the lower effective tax rate helped boost profits throughout 2018. Without the tax law, profits would have been up 18.5% in the fourth quarter, reaching $50.3 billion, the FDIC said. “Once again, the banking industry reported a strong quarter. Net income improved on higher net operating revenue and a lower effective tax rate,” FDIC Chairman Jelena McWilliams said in prepared remarks. Link to comment Share on other sites More sharing options...
Elessar78 Posted February 22, 2019 Share Posted February 22, 2019 My effective tax rate went down from 8% to 5% BUT HR Block made a mistake on my 2017 return, so that drop could be misleading. We reduce our tax liability via Flex Spending Account (healthcare, pre-tax), Retirement account contributions, 529 plans, and the Child Tax Credit. I went with a real accountant this year. I started doing my 2018 taxes myself and I could tell that HR Block made a mistake because they entered numbers that I could not figure out where they came from. We MFJ with W2s and I also get a 1099 for my side gig and freelance work. Link to comment Share on other sites More sharing options...
The Evil Genius Posted February 22, 2019 Share Posted February 22, 2019 (edited) So here's an eye opener. We made $5,800 more in AGI this year. But $24,500 MORE of our income is being taxed than last year. Gone is a little over $10k on SALT deductions and $8100 in personal exemptions. Dang. Edited February 22, 2019 by The Evil Genius 1 Link to comment Share on other sites More sharing options...
Grumpy Vet Posted February 22, 2019 Share Posted February 22, 2019 I'm curious how the adjusted tax brackets will affect people this year. We are sending our taxes in today to the accountant and I have no idea how it will all come out. We will lose some exemptions and miss out on some SALT w/ the cap - but the tax rates at the various income levels seemed to have dropped fairly significantly. I'm sure we will still be boned. We always end up owing a decent amount in Federal every year w/ a small state return. Link to comment Share on other sites More sharing options...
The Evil Genius Posted February 22, 2019 Share Posted February 22, 2019 (edited) I'd say a good portion of us here fall into the married filing jointly with a joint AGI of between 75-150k a year. For those of us who are also homeowners, I doubt the 3% reduction in tax for basically all income above 20k will make up for the loss of $8100 in personal exemptions and the new $10k hard limit on SALT deductions. Good luck and maybe ask your tax person if filing married but separately makes sense now. Edited February 22, 2019 by The Evil Genius Link to comment Share on other sites More sharing options...
Corcaigh Posted February 22, 2019 Share Posted February 22, 2019 I've yet to look at ours. We are very light on deductions as we don't have a mortgage. Maybe I'll get all your cash. 💰💰💰 2 Link to comment Share on other sites More sharing options...
PleaseBlitz Posted February 22, 2019 Share Posted February 22, 2019 I sent my tax docs to my accountant today as well. After a few years using H&R Block, decided to use a for-real CPA this year. Still expecting a root canal. 1 Link to comment Share on other sites More sharing options...
The Evil Genius Posted February 27, 2019 Share Posted February 27, 2019 (edited) Audit (heavily redacted and highly desired to not be released by this admin) finds nearly 11 million filers will be effected by the 10k SALT limit. https://www.nytimes.com/2019/02/26/us/politics/treasury-salt.html Edited February 27, 2019 by The Evil Genius Link to comment Share on other sites More sharing options...
PleaseBlitz Posted February 27, 2019 Share Posted February 27, 2019 5 minutes ago, The Evil Genius said: Audit (heavily redacted and highly desired to not be released by this admin) finds nearly 11 million filers will be effected by the 10k SALT limit. https://www.nytimes.com/2019/02/26/us/politics/treasury-salt.html That's a feature, not a bug. It will overwhelmingly impact people that are not Trump's base (i.e., highly educated people that live in cities or inner suburbs). Link to comment Share on other sites More sharing options...
Springfield Posted February 27, 2019 Share Posted February 27, 2019 I bet $100 that retail sales are down the first quarter of this year because people aren’t getting the refunds they anticipated. I think this is a HUGE hit to our economy. Link to comment Share on other sites More sharing options...
Larry Posted February 27, 2019 Share Posted February 27, 2019 5 hours ago, The Evil Genius said: Audit (heavily redacted and highly desired to not be released by this admin) finds nearly 11 million filers will be effected by the 10k SALT limit. https://www.nytimes.com/2019/02/26/us/politics/treasury-salt.html 4 hours ago, PleaseBlitz said: That's a feature, not a bug. It will overwhelmingly impact people that are not Trump's base (i.e., highly educated people that live in cities or inner suburbs). Absolutely. The intent of the law was "raise taxes on people who don't vote for Trump". Link to comment Share on other sites More sharing options...
JCB Posted February 27, 2019 Share Posted February 27, 2019 Yup. Basically all my write offs as an academic are gone. Link to comment Share on other sites More sharing options...
Zguy28 Posted February 27, 2019 Share Posted February 27, 2019 I for one don't mind paying more taxes. It goes to meet less fortunate people's needs right? 2 Link to comment Share on other sites More sharing options...
dfitzo53 Posted February 28, 2019 Share Posted February 28, 2019 I don't mind the idea of higher taxes. There's a lot of evidence that supports strong governmental programs and reduced wealth inequality. The problem is that GOP-engineered tax structures are making wealth inequality worse, not better. And they're doing it on purpose. 5 Link to comment Share on other sites More sharing options...
PleaseBlitz Posted February 28, 2019 Share Posted February 28, 2019 11 hours ago, dfitzo53 said: I don't mind the idea of higher taxes. There's a lot of evidence that supports strong governmental programs and reduced wealth inequality. The problem is that GOP-engineered tax structures are making wealth inequality worse, not better. And they're doing it on purpose. THIS. I don't hate paying taxes. I hate paying more taxes so billionaires and massive corporations can pay less. 7 Link to comment Share on other sites More sharing options...
mcsluggo Posted February 28, 2019 Share Posted February 28, 2019 (edited) Edited March 1, 2019 by mcsluggo Link to comment Share on other sites More sharing options...
Springfield Posted March 2, 2019 Share Posted March 2, 2019 https://www.huffingtonpost.com/entry/tax-deduction-turmp-323-billion_us_5c7a2da1e4b0e1f77651b412?m=false&utm_source=reddit.com Quote There’s more bad news for taxpayers. A government report has revealed that 11 million taxpayers are losing out on $323 billion worth of deductions due to a punishing change in President Donald Trump’s tax law. Quote The cap was imposed to help pay for huge tax cuts to corporations, whose tax rates were slashed from 35 percent to 21 percent. Giant ****ing scam artist, this party. 1 Link to comment Share on other sites More sharing options...
@DCGoldPants Posted March 2, 2019 Share Posted March 2, 2019 On 2/28/2019 at 8:44 AM, PleaseBlitz said: THIS. I don't hate paying taxes. I hate paying more taxes so billionaires and massive corporations can pay less. Right. If people had a list of the things their taxes could go fund. What would they pick vs. reject? I imagine fixing roads and bridges would be preferred over a top % break. Paying Police, Fire, and EMTs over a Corporate break. Public schools over private ones. Plenty would support big military spending if it wasn't overpriced billing to contractors for things they sometimes deliver on. 2 Link to comment Share on other sites More sharing options...
HOF44 Posted March 2, 2019 Share Posted March 2, 2019 But at least with all the money the businesses have now we all will get raises!!!! Link to comment Share on other sites More sharing options...
Springfield Posted March 2, 2019 Share Posted March 2, 2019 22 minutes ago, HOF44 said: But at least with all the money the businesses have now we all will get raises!!!! My boss was so generous, he paid me less so that I’d get the same amount every paycheck and I wouldn’t have to pay as much in taxes! What a genius. Link to comment Share on other sites More sharing options...
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