Posted on 02/09/2019 4:00:36 AM PST by Libloather
**SNIP**
2. You might not get as much money back, but that doesn't mean you'll pay more either. Accountants call this year's process easier for the average person. With the new tax law, everyone's filing on the same form. Most people's tax rate is less, too. But that's not all: Your refund check may be less may be less, a lot less, than last year.
Instead of withholding as much throughout the year, the government gave it to the people to spend, which is something not everyone realizes.
"They anticipated for the lower rates," said Tylor Katze of Bennett Tax. "And it's causing people to owe or have a lower refund overall, which they're not too happy about."
**SNIP**
6. Start thinking about your 2019 taxes... now. It's never too early to look ahead to next year's taxes: If you want the bigger refund like you're used to, talk to your tax adviser now and change your withholdings to make sure you don't owe and get more money back in 2020.
(Excerpt) Read more at channel3000.com ...
Thanks for the heads up.
I have six dependents, I’d better check it out.
Whassup? Does the $10,000 cap apply just to property taxes, or is it applied to property taxes AND state income taxes? In New Jersey, the combination of the two may be more than $10,000.
Yep. Trump somehow got a free pass on this “reform” which has hurt many in the middle.
Have not done my taxes yet but we made about $3000 more last year and paid $2100 LESS in taxes. I figure I got my rebate in monthly increments.
While I couldn’t afford the taxes in those areas, the simple truth is that in NJ sky-high property taxes are the only means to keep an area “white”. Another tactic in less-wealthy areas is to simply have no overnight parking on any street; people can’t convert single-family homes into illegal multi-families or rooming houses and fill your neighborhood with transients.
You’re welcome; I’m glad I prepared early because I have over two months to come up with thousands of dollars.
While you may benefit from the child tax credit for some or all of them, in terms of that first part of page one of your return, you now have 0 dependents. Good luck (seriously).
“Those are the pertinent questions. Not whether you under or over withheld.”
People just don’t get it. My daughter, who is a math wiz compared to me, and makes more money than me is always going on and on about how her commission payments have like 40% tax withheld, while her regular salary checks have withholding at a much lower rate.
For years I have tried to explain to her that it doesn’t matter at the end of the year, but it still annoys her muchly.
I have my doubts about this tax reform. I think I’m going to be screwed personally, but the kid made out OK so far.
But, as you correctly say to really assess how it worked out for her we’d have to compare this year’s return to last years. I’m pretty sure that high withholding saved her, plus she’s got 2 kids.
And, btw, how many people have a mtg. for over 750K?
Still think hubby and I will be screwed, but still worth it not to have Felonia VonPantsuit as POTUS.
That's why so many people just sell their homes as soon as their last child is out of school. There's no reason to pay the tuition -- oops, I mean the taxes -- when you're not using the schools anymore.
That’s the issue: did you pay more or less tax than last year on the same income?
Howdy!
It does apply to the combination, but still comes to less than the $24,000 increased standard deduction. One point of this law was to simplify tax returns for many people, and I believe this will do that (far fewer people will itemize now - in all states). Then they just have to see if that is enough to replace the personal exemptions (for the spouses and any dependents) that are lost.
We’ll see if he gets that free pass in 2020; I don’t think it is a foregone conclusion that he’ll win (though I’d certainly prefer him to any Democrat). We’ll see what concrete accomplishments (not just words) he has by November 2020.
“while eliminating the personal exemptions has made over $20,000 more of my income taxable.”
Yes, this is the issue. Amazing how the media just NEVER REPORTED on any of this, too busy talking about RUSSIA RUSSIA RUSSIA. Plus, of course, most reporters are innumerate, as are most lawyers.
Sorry you got screwed over by this, expecting the same for myself, going to run the numbers this weekend, while I’m still drinking and smoking, iykwimaityd.
“IMHO, withholding by the guvmnt should not take place.”
I’ve been saying that for years. Income withholding was the most devious and genius thing the big government politicians ever came up with. Make people write a check at the beginning of each year and see how many politicians would still be in office after the next election. I don’t know why people can’t see this. They’re too worried about their “refund” like the government is actually giving them something.
I think the “private school tuition” is the consequence of the high property taxes, not the cause of it. People want to live in areas where “undesirables” are priced out, and the high taxes (which primarily go to the public schools) are simply the vehicle to achieve that.
Overall, the school costs drive the property taxes to ridiculous levels across the state; the scenario I outlined above is why some areas have property taxes of $25,000 instead of the $10,000 more commonly found.
“...they will answer with their net figure instead of their gross.”
This. I once had my boss say he was interviewing a person for a job, and she didn’t know how much she made, but she knew she took home X amount. And how much would our company have to pay her for her to take home that same X amount.
I came up with a ballpark number, but it was a big stadium, that’s all I can say.
I received more of my money from wages over the course of the year because of Trump’s tax plan. Still got a small refund but overall paid 3000 less in federal taxes. And I live in California with property taxes and interest beyond the limit.
Thanks; no reason to be sorry, just warn acquaintances in similar situations so they aren’t surprised in two months - they might need the time to scrape together the money.
Probably best to do it while self-medicating - LOL!
(FWIW, the media did report on it but in class warfare terms - good for rich, bad for everyone else, with no specifics. The truth is that low-wage earners can benefit from the new law as well.)
Thats is what us happening in my town. Once your last kid has a high school diploma from our high school you sell. Though many wait til the last fsfa so you dont show the gain from the house.
The national GOP simply used this as an opportunity to screw a bunch of deep "blue" states. As one astute observer pointed out, there are six states that are screwed particular badly by this tax law -- California, New York, New Jersey, Massachusetts, Connecticut and Illinois. These are the states affected most by the combination of two factors in our tax code that screw middle-class people: (1) the high cost of living pushes middle-class people into upper-income tax brackets, and (2) they have ridiculously high state and local taxes that now have deduction caps.
In a Senate where the Republicans only held a 51-49 majority, this tax bill wasn't killed on the spot because there wasn't a single Republican U.S. Senator among the twelve representing these six states.
The priv scool tuition is tbe Cause not the consequence.teachers are highly overpaid in ny nj metro area. We are stuck with their high salaries for 9 month of work, pensions and healthcare. They have guaranteed rates of return that we have to make up. Art teachers making 145k year.
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