Tax Bill

[Springfield]

1 hour ago, techboy said:

 

You must be itemizing. VA isn't actually processing returns yet because the legislature has to deal with the fact that the federal change is going to balloon VA income tax receipts due to a variety of VA rules, including the one that says if you take the standard deduction on Federal (which mist people will now do), you have to take it on State, where it is MUCH lower. We got hit on VA taxes, because we switched to standard, so we could no longer itemize.

 

It also means you fall into the relatively small group of "well off, but not rich enough to make out" people that got screwed right away, instead of later, i.e. professionals in high cost of living areas, like DC, NY/NJ and San Francisco/So Cal.

 

It looks like we will be getting an extra refund in October from VA as part of the response, though.

 

https://wtop.com/virginia/2019/02/deal-reached-for-virginia-tax-plan/

 

I'm just wondering if we'll have to file an amended return. It sounds like not, but we'll see.

 

 

 

 

I used HR Block’s tool and yes, I did itemize, as it suggested.  It was also their tool that gave me a refund from VA.  I wonder if they won’t process it yet.  It would be a bummer if I got screwed not only with federal, but also state.

[Springfield]

35 minutes ago, TheGreatBuzz said:

Am I the only one that did better this year?

 

My assumption is that if your situation is not complicated and you don’t own an expensive home where you could claim over $10k in interest and SALT then you’ll make out better.

 

I got to claim an extra $5,000 last year because of that.  Losing the standard exemption and $5k in deductions, my taxable income went up by roughly $20,000.

[TheGreatBuzz]

10 minutes ago, Springfield said:

 

My assumption is that if your situation is not complicated and you don’t own an expensive home where you could claim over $10k in interest and SALT then you’ll make out better.

 

I got to claim an extra $5,000 last year because of that.  Losing the standard exemption and $5k in deductions, my taxable income went up by roughly $20,000.

I think not having kids also.  I didn't lose deductions that I was used to.  That's what someone told me.

[Springfield]

5 minutes ago, TheGreatBuzz said:

I think not having kids also.  I didn't lose deductions that I was used to.  That's what someone told me.

 

I dunno.  I wasn’t able to claim kids prior to this because we made too much money.  This year I could.  It just wasn’t enough to overcome the lack of deductions and the fact I’m paying more taxes on my taxes without the standard exemption.  If I didn’t have kids I would have lost like $2,400 in credits and would have been doubly bad.

[techboy]

32 minutes ago, Springfield said:

 

I used HR Block’s tool and yes, I did itemize, as it suggested.  It was also their tool that gave me a refund from VA.  I wonder if they won’t process it yet.  It would be a bummer if I got screwed not only with federal, but also state.

 

They won't process it until they pass the legislation from the article, but if you itemized as far as I can tell the only change is that you'll get a couple hundred bucks more in October for being married filing jointly.

 

We'll see. 

1 hour ago, TheGreatBuzz said:

Am I the only one that did better this year?

 

The really wealthy did better. The middle class and below did slightly better (for now), but might be surprised by the lower withholdings leading to no refund, leaving them pissed.

 

Professionals in high COLAs with high SALT, but who are not paying SALT on a yacht, probably got screwed, and the demographics of the Tailgate seem to include many of this group, unsurprisingly, since DC is definitely one of those areas.

[The Evil Genius]

Just to clarify, mortgage interest isn't impacted unless you are paying on a loan above 750k (down from 1mil previously)...

 

The SALT cap absolutely ****s me (us) though. Luckily I bought early enough in the Bay area not to be effected by that lose mortgage interest cap. 

 

Can't wait to see how much I lose from the tax cuts though.

[Springfield]

Also, it seems that the elimination of the standard exemption is a big screw job.  More of your income is now taxable compared to last year.

[PleaseBlitz]

15 hours ago, techboy said:

 

 

Professionals in high COLAs with high SALT, but who are not paying SALT on a yacht, probably got screwed, and the demographics of the Tailgate seem to include many of this group, unsurprisingly, since DC is definitely one of those areas.

 

 

[tshile]

He’s mocking us because he’s got a yacht 

[LD0506]

[HOF44]

21 hours ago, techboy said:

 

 

Professionals in high COLAs with high SALT, but who are not paying SALT on a yacht, probably got screwed, and the demographics of the Tailgate seem to include many of this group, unsurprisingly, since DC is definitely one of those areas.

Yeah that’s pretty much me.  

[Forehead]

I meet with my tax guy Thursday, should be a blast.

 

Oddly, when we filed last year, he said he thought we'd wind up ahead this year, but I'm not sure why.

[dfitzo53]

1 minute ago, Forehead said:

I meet with my tax guy Thursday, should be a blast.

 

Oddly, when we filed last year, he said he thought we'd wind up ahead this year, but I'm not sure why.

Is Trump your tax guy?

[just654]

On 2/9/2019 at 5:53 PM, Zguy28 said:

Fed still gave me a refund, but MD went from owing $200 last year to $1000 now. Maryland, where we tax the rain.

 

Rain tax was gotten rid of by Hogan

[Forehead]

59 minutes ago, dfitzo53 said:

Is Trump your tax guy?

 

Hah maybe.  This was last year, he had said based on his initial reading of the plan, we stood to do better.  I honestly haven't paid much attention to what deductions and exemptions still exist because I pay this guy to do it for us.

 

I guess my wife and I fall into that category of being DC area professionals who don't own yachts, so I'm mentally prepared for the possibility that he might be wrong and we're about to get boned.

[HOF44]

2 hours ago, Forehead said:

 

Hah maybe.  This was last year, he had said based on his initial reading of the plan, we stood to do better.  I honestly haven't paid much attention to what deductions and exemptions still exist because I pay this guy to do it for us.

 

I guess my wife and I fall into that category of being DC area professionals who don't own yachts, so I'm mentally prepared for the possibility that he might be wrong and we're about to get boned.

Having kids will,help you a lot. Also if you had any rental,property losses that’ll help too. The question is will that be enough to offset the loss of personal exemptions and the 24k standard deduction you will have to take because you can’t itemize now as pretty much everything goes toward your 10k salt limit.  I went from deducting 40k itemized to only deducting 24k standard deduction and lost the personal exemptions.  Good thing I started up a side business last year. That thing is in the red bigtime!!

Edited February 11, 2019 by HOF44

[Forehead]

31 minutes ago, HOF44 said:

Having kids will,help you a lot. Also if you had any rental,property losses that’ll help too. The question is will that be enough to offset the loss of personal exemptions and the 24k standard deduction you will have to take because you can’t itemize now as pretty much everything goes toward your 10k salt limit.  I went from deducting 40k itemized to only deducting 24k standard deduction and lost the personal exemptions.  Good thing I started up a side business last year. That thing is in the red bigtime!!

 

Two kids, and we do have a rental but not too many expenses last year.  Our primary deductions have come from mortgage interest, daycare expenses, student loan interest, that kind of thing.  Guess we'll find out in a few days.

[HOF44]

3 minutes ago, Forehead said:

 

Two kids, and we do have a rental but not too many expenses last year.  Our primary deductions have come from mortgage interest, daycare expenses, student loan interest, that kind of thing.  Guess we'll find out in a few days.

Student loan interest is gone, add up your state taxes, mortgage interest and I’m pretty sure you 10k there. So then you end just taking the standard deduction cause the expenses for most on the schedule all get grouped into the 10k limit. If you skate by unscathed it will be because of the child expenses and deductions. I’m pissed and I knew all along it was happening. 

Edited February 11, 2019 by HOF44

[Larry]

Just a thought about an experiment that people could try, if they wanted to. At least some could try it. 

 

I see lots of people trying to compare this year's taxes to previous year's. Unfortunately, very few people have the exact same situation as last year or prior. Makes the comparison rather Apple vs orange. 

 

But if y'all are like me, and do your own taxes with Turbo Tax or something, then your computer has your previous year's taxes, and the previous year's programs. 

 

Take this year's numbers, and type them into last year's program. 

 

That will tell you "what would my taxes be, this year, if the laws hadn't changed?"  Apples vs apples. 

[tshile]

What’s great is probably a good 70-80% of the “my taxes are higher/lower” can’t even be listened to because people are so terrible at understanding their taxes. 

 

Just because you didnt get back after filing this year what you got back after filing last year doesn’t mean your taxes went up. 

 

I fully expect the media to know this and do absolutely nothing to help clear up the confusion. They probably won’t even mention that these people are clueless. 

10 hours ago, HOF44 said:

Having kids will,help you a lot. 

 

Up to 2 kids. After 2 your deduction doesn’t increase. 

 

Im in the same boat as you. I had 40-50k in deductions last year. 

 

This year doesnt count because I lived in a rental while building a house through all of 2018. 

 

But it next year, when i Would have real estate taxes to deduct, im going to get hosed. 

 

My real estate taxes alone will be 8k. 10k SALT cap? 

 

 

[LD0506]

[Renegade7]

Quote

The average tax refund check is down 8 percent ($170) this year compared to last, the IRS reported Friday, and the number of people receiving a refund so far has dropped by almost a quarter.

 

Many Americans are upset their 2018 refunds shrunk after the GOP tax cuts

https://www.washingtonpost.com/business/2019/02/10/millions-americans-could-be-stunned-their-tax-refunds-shrink/

[tshile]

2 minutes ago, Renegade7 said:

Many Americans are upset their 2018 refunds shrunk after the GOP tax cuts

 

And how many of them have squared that with the increase in their paychecks? 

 

 

 

From the article

 

Quote

Prugh said he had no reason to believe their tax situation would change this year because he and his wife have lived in the same house for years while their incomes have remained stable.

Well then this person is an idiot. Not sure why the WP would use an idiot as the main quote provider for the article for us to relate to. 

 

And halfway through the article 

Quote

Many Americans may confuse their meager refunds as a sign that they paid more in taxes as a result of the Tax Cuts and Jobs Act. Generally, that is not true.

 

According to the Tax Policy Center, 80 percent of filers received a tax cut, and about 5 percent wound up paying more in federal income taxes. The tax cuts showed up in fatter weekly or biweekly paychecks for most Americans, but few people noticed, according to polling.

 

But why would we want to open with that?

 

much better to run with headlines about how refunds are down and quotes from idiots that don’t understand their taxes. 

[Zguy28]

9 minutes ago, Renegade7 said:

 

Many Americans are upset their 2018 refunds shrunk after the GOP tax cuts

https://www.washingtonpost.com/business/2019/02/10/millions-americans-could-be-stunned-their-tax-refunds-shrink/

Stunned I tell you!

 

Buried behind the emotional argument is this information:

 

Quote

 

Many Americans may confuse their meager refunds as a sign that they paid more in taxes as a result of the Tax Cuts and Jobs Act. Generally, that is not true.

 

According to the Tax Policy Center, 80 percent of filers received a tax cut, and about 5 percent wound up paying more in federal income taxes. The tax cuts showed up in fatter weekly or biweekly paychecks for most Americans, but few people noticed, according to polling.

 

“There’s a difference between taxes and your refund,” said Joseph Rosenberg, a senior research associate at the Urban-Brookings Tax Policy Center at the Urban Institute. “People generally got a piece of their tax cut last year gradually in the form of lower withholding on their paychecks.”

 

Many families received a tax cut, but their refunds are smaller this year because the IRS made major changes to the “withholding tables” — the amount the federal government recommends taking out of your paycheck for federal income taxes — in the new tax law.

 

The IRS attempted to set withholding levels so that more people would pay correct taxes, meaning they neither owe anything to the IRS at the end of the year nor receive a refund.

 

 

[tshile]

16 minutes ago, Zguy28 said:

Stunned I tell you!

 

Buried behind the emotional argument is this information:

 

 

 

Its going to be months of this and we’ll see it again in November. 

 

I think the the bill is bad and my rough math has me at best breaking even, and likely paying more, but the sheer amount of misinformation and the fundamental misunderstanding of how taxes work in this country by (what seems to be a majority of) people and the media is laughable and frustratingly ridiculous. 

 

If a persons quote is “I didn’t think anything would change because we live in the same house” when you interview them for an article about the new taxes then you need to find someone else to interview. Not make them the feature of it. 

 

Unless your writing an article about how dumb people are when it comes to taxes. 

 

Or you have an agenda

 

or you, yourself, are also dumb about taxes (in which case you shouldn’t be paid to write such articles)

 

shows the piss poor state of media/news when someone that’s supposedly the standard for journalism/news puts out an  article like this. 

Edited February 11, 2019 by tshile