Here's why your refund may not be as high as you expect under the new tax law

Channel 3000 ^ | 2/06/19 | Christina Lorey

[ridesthemiles]

I only let them have that money in my younger years when I wasn’t too good at stashing away money for vacations.

I have NOT had a PAID vacation since about 1980, so no more ‘refunds’.

[cherry]

I have an inlaw who has been collecting on oil land and money for yrs..the past year the money has been rolling in......

now she's majorly upset that her SS has been cut and the tax rules have changed and she is just so angry about it....and angry that her medicare is going up.....

of course, she's violently anti trump....

but what's good for the little people apparently isn't good enough for her.....

she's all for govt paying for the illegals and the sloths etc BUT NOT HER..

[jocon307]

“Mind blowing. Quick interview I hope.”

Yeah, we did not hire that person.

[zeugma]

Because you were smart and didn't get overwithheld in the first place?

Indeed. My optimal tax bill is $0. Where I don't get a refund, neither do I have to pay.

[zeugma]

As an exercise to get your blood really boiling. You can plug your current numbers into the 1913 Income Tax form. It is a whopping 4 pages, and that includes the instructions.

[Lagmeister]

I read that too. I never suggested it was perfect. But for a vast majority of folks, I will speculate they get a tax cut.

[oldtech]

If you sell your home & rent,won’t the rent payments be worse? They would go on forever. Don’t you think the rent payment is reflected from what the owner must pay in taxes? It certainly works that way where I live. Only way any of it works out for me is to live in a house that is paid off & have property tax(homestead)exemption. Not sure how many states/counties have this.

[Captain Jack Aubrey]

“I received a $5,000 federal tax refund last year. This year I owe $4,500. The cap on state and local taxes is the difference. I should be getting a deduction of $25,000 in state and local taxes paid, on top of other deductions. But they are capped at $10,000. So I have to take the standard deduction. Otherwise I would owe $7,000. Also I failed to adjust my withholdings after the tax law passed because I falsely believed I would be paying less in taxes.

If this is happening to everyone else, I don’t understand what the budget is not balanced.”
>>>>>>>>>>>>>>>>>>>>>>>>

That is my post at post 80 above. If I could delete it I would. It is wrong and based on a misunderstanding by me. Upon further review, my problem is a withholding problem. I accidentally under withheld, resulting in a $10,000 swing from last year’s refund to this year’s amount owed.

I actually made more money in 2018 than in 2017, have much smaller deductions ($24,000 standard deduction) and will pay less in taxes for 2018 than 2017. So I did get the Trump tax cut, and how! Now I just need to figure out how to pay the amount owed April 15.

[jospehm20]

Tax day should be October 31st. Right before election day.

[Zhang Fei]

[I’m getting crushed, and I suspect many people with multiple teens is as well. Not only did the lowered withholdings make me owe more, but overall my tax bill itself is noticeably higher. The elimination of personal exemptions is designed to punish parents who work anything above low-wage jobs; the doubling of the child credit only impacts children 16 and under, while eliminating the personal exemptions has made over $20,000 more of my income taxable.]

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This will cost the GOP in 2020. It’s the first year that post tax cut tax returns are being filed. I’ve always felt Paul Ryan was politically autistic, and that based on my calculations, a lot of people were going to take a hit from the tax cuts (i.e. this was going to mean tax hikes for them), most of them in the limbo between the high five figures and very low six figures. And most of these people tend to be GOP voters.

[Jane Long]

I heard a segment on FBC, this past week, discussing this very topic.

[kearnyirish2]

I agree - I think this will cost them. There are definitely people who benefit from these tax changes; the ideal candidate is the childless tenant who had little to write off before - in another words, people who “got right” and didn’t commit the middle class crimes of having children or buying a home.

[kearnyirish2]

You’ll probably hear more discussions about this as April 15th draws closer; I’m glad I ran the numbers early. I never assumed they were really going to lower my taxes.

[Alberta's Child]

The racket here is for people in that age range to move into towns where they develop tons of age-restricted 55+ housing. The home values are lower (hence the tax assessments are lower), and they have hardly any school-age kids in those towns so the school budgets are very low.

[Alberta's Child]

It probably won't cost the GOP as much as you think.

This issue primarily affects suburban voters in high-cost states with high taxes and inflated salaries that push middle-class people into upper-income brackets.

The GOP already lost these districts in 2018.

If anything, the House Democrats in those districts are under tremendous pressure to fix the problem -- and they can't do it without cutting taxes for people who most of the Democrat base considered "wealthy."