Will Your Taxes Go Up or Down? A Calculator for the New Tax Bill

NY Times ^

[Paul R.]

One caution about other online calculators, too: On one I went to, to investigate subsidies for ObummerCare, a $100 increase in income takes the example I ran from a subsidy of $1,916 per month, to NO subsidy at all, due to passing a “400% of poverty level” threshold. That just does not seem reasonable — it’d be one of the biggest disincentives to try to make a little more money ever conjured up...

[CatOwner]

Just kidding (sort of), but you have to keep in mind that you are in a small minority. And hopefully an improved economy will increase your chances to make more money.

My wife and I are retired as of the middle of 2017. We'll be fully retired for the first time in 2018. Great timing. :(

We've talked of moving from California to Texas to be near our only child, who moved there over a year ago. The thing is, based on the property tax rates in Texas, we won't see the overall property taxes being much lower than they are now (thank you Prop 13! - for as long as it will last). So, we would be in a similar boat there.

Assuming the tax plan remains in place for at least 5 years and the tax rates don't rise, we should end up in the plus column once the older of us starts taking RMDs, while the other starts taking SS payments. At that point, the impact of the lower tax rates will overcome the loss of itemizing (in our situation).

[taxesareforever]

Yeah, the media is falling all over itself to demonize the tax cut because they know it will boost the economy and with that will boost Trump support. I’m enjoying it. Pass me some more popcorn.

[Does so]

We belong to the group of retirees (over and under 65) with modest taxable income, and deductions for property taxes, medical expenses/premiums over AGI threhold, charitable contributions, etc. Some might also have some state income taxes, mortgage interest (hopefully for not too long in retirement), etc. That’s a group likely to not see any tax cut.

What are the chances of the (new) property tax elimination being challenged in the courts as "double taxation"?

[Grampa Dave]

Here are the RINOs That Voted Against Tax Cuts!

Dana Rohrabacher of California
Darrell Issa of California
Walter B. Jones of North Carolina
Frank A. LoBiondo of New Jersey
Christopher H. Smith of New Jersey
Leonard Lance of New Jersey
Rodney Frelinghuysen of New Jersey
Lee Zeldin of New York
Peter T. King of New York
Dan Donovan of New York
John J. Faso of New York

http://truedaily.news/2017/12/19/here-are-the-rinos-that-voted-against-tax-cuts/

Time to dump them like old reeking garbage~!

[Grampa Dave]

Thanks for this link.

Tax Reform Bill
You’d save $994

Your federal tax bill: $6,339

Rate cuts end in 2025 unless extended

Deductions
“Personal exemption” deduction: $0

Total State And Local Tax (SALT) deduction: $4,467

Your other deductions: $12,000

Due to the bill’s changes, you should SWITCH
to taking the increased standard deduction ($24000)
rather than itemizing (now worth $16,467). With switch:

Your total deductions: $24,000

Your taxable income is: $56,000

Tax rates
In $0 - $19050 bracket, you pay 10%. Cost: $1,905
From $19050 - $77400, 12%. Cost: $4,434
Tax credits
None

Total federal tax bill: $6,339

This will be enough to convince my wife to do a reverse mortgage and have a line of credit when/if we need it.

Our CPA has suggested doing the standard deduction and the reverse mortgage. That will add $2500/month of disposable income and stop the damn paper collection for our taxes.