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Taxes-Itemized Deductions?
- Thread starter Doug
- Start date
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We now have 2 kids who are adults, so we're down to 2 minor children. We will once again be itemizing.
Funny how the same time the child tax credit goes away, the expenses of this "children" hit an all-time high with the older two in college.
Anyhoo, I'm still waiting on my K-1, so I don't have final numbers yet, but so far, things are looking up....or at least not down.
On the plus side, my older son is graduating from college in 2 months (less outlay for me) and already has accepted an offer of a good job with decent salary, health insurance and matching 401k...and he's already complaining about the taxes as he figures out his budget.
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I know raising children is expensive but I still do not accept that I should subsidize someone else's family.
How do you feel about subsidizing the people who will pay for your Social Security and Medicare? I guarantee that as long as those programs are around, you'll get more out of them than they got out of you.
I "loaded up" 2018. My church probably is not happy about getting a whole lot of cash in December, but then lean in spring...
You're not subsidizing mine. I'm still a net payer.
Congratulations!! It sounds like that boy was raised right.
My oldest is 11, so I've still got a ways to go. My good news is that my house should be paid off when he's a sophomore in college.
...and an early congrats to you!
Well by that logic I am subsidizing future drug dealers, felons and others who drain the system. The argument is a bit specious.
Someone who has three children and benefits from the credit, and who makes the same wage as I, will receive the same SSI benefit so it is still very unbalanced. I understand that a stable to growing population is necessary for and benefits society. Just as home ownership benefits society with additional consumer goods demand, stable economic basis, etc. Hence the mortgage interest deduction. It just irks me that someone with the same income and similar deductions, but with dependents, gets thousands in benefits but if I try to claim my CZ Rimfires and S&W Revolvers as dependents, I am in trouble.
What I am getting at is that there are several elements in the tax code have nothing to do with revenue. They are about encouraging and discouraging behavior.
Want people to save for retirement? Make the income saved tax deferred. Want people to invest in a business and leav it to the next generation? Lower or eliminate inheritance tax. Want people to invest in their businesses? Lower or eliminate capital gains tax, want people to have children who will be future taxpayers? Formulate deductions and credits to encourage it.
Rest assured, you are not subsidizing anyone. In order for that to even arguably happen, the federal government would have to hold itself strictly to a budget that is balanced, It does not. It spends the money whether it gets it or not. Someone paying less taxes does not raise your taxes. Tax cuts do not have to be "paid for". That is liberal claptrap.
BTW- one who draws SS and had no children will not even come close to funding his own SS benefits.
I had 4 children who will be paying into the system when I retire. I will have done a lot more to fund SS benefits during my retirement than anyone who did not have children. It currently takes 2.9 workers to fund the SS benefits of the average retiree. You're welcome.
Want people to save for retirement? Make the income saved tax deferred. Want people to invest in a business and leav it to the next generation? Lower or eliminate inheritance tax. Want people to invest in their businesses? Lower or eliminate capital gains tax, want people to have children who will be future taxpayers? Formulate deductions and credits to encourage it.
Rest assured, you are not subsidizing anyone. In order for that to even arguably happen, the federal government would have to hold itself strictly to a budget that is balanced, It does not. It spends the money whether it gets it or not. Someone paying less taxes does not raise your taxes. Tax cuts do not have to be "paid for". That is liberal claptrap.
BTW- one who draws SS and had no children will not even come close to funding his own SS benefits.
I had 4 children who will be paying into the system when I retire. I will have done a lot more to fund SS benefits during my retirement than anyone who did not have children. It currently takes 2.9 workers to fund the SS benefits of the average retiree. You're welcome.
I DO have a kid, and that's unfair and wrong!
Yeah? Well, I DON'T have a kid, and that's unfair and wrong!
Too dark? Did I just Debbie Downer the thread?
My bad, didnt explain that well. In previous years it was Itemized + Exemptions you subtract from your AGI to get your taxable income. This year you lose the exemption part which was 12,150 for us and you are limited on SALT to 10k, and we exceed that. Based on that we needed to take the Std Deduction 24k. This made our taxable income increase a lot, like 12k and we didnt receive a 12k increase in our pay. When it was all said and done we ended up owing 3330. a 4300 swing from 2017. I think this increase in taxable income made us lose 2 credits we were able to take in years past.
I wasnt expecting that big of a hit. I'm mad at myself for not better understanding what the impact was going to be to me.
AmmoManAaron
Master
"You must spread some Reputation around before giving it to HoughMade again."
A tip from your friendly 1040 junkie -
If you itemized, and if you where hit by a SALT limit, andif you received a state tax refund, then you can adjust or ignore the amount on your 1099G you receive that you would normally write in on your 1040.
https://www.irs.gov/newsroom/with-n...-tax-treatment-of-state-and-local-tax-refunds
TL/DR: I could have deducted $14,000 but was limited to $10,000 therefore I can exclude the $350 tax refund as income on my 2019 tax return.
If you itemized, and if you where hit by a SALT limit, andif you received a state tax refund, then you can adjust or ignore the amount on your 1099G you receive that you would normally write in on your 1040.
https://www.irs.gov/newsroom/with-n...-tax-treatment-of-state-and-local-tax-refunds
TL/DR: I could have deducted $14,000 but was limited to $10,000 therefore I can exclude the $350 tax refund as income on my 2019 tax return.
Well, this will be a "good" (I hesitate to use the word) tax year again. Still too much, but less than what I paid for 2017, close to the same as 2018.
We kept paying our quarterly payments in 2018 based on 2017, but because the Trump tax cuts kicked in we (and this makes me a bit angry) massively overpaid (without going into boring details, it was not always easy to accurately predict my tax liability because of some firm restructuring).
Therefore, we used the overpayment to pay the next quarter and a bit of the quarter after that. We adjusted our quarterly payments for 2019, so the overpayment will be less as the goal is not overpay at all.
I still itemize, but now I am down from 4 to 3 dependent children and only 2 under 18. Nevertheless, itemizing still makes sense. No SALT limit issue here. Apparently I need to buy more real property and pay more property taxes.
As usual, I will probably receive my K1 on about April 10th. My CPA just loves this.
We kept paying our quarterly payments in 2018 based on 2017, but because the Trump tax cuts kicked in we (and this makes me a bit angry) massively overpaid (without going into boring details, it was not always easy to accurately predict my tax liability because of some firm restructuring).
Therefore, we used the overpayment to pay the next quarter and a bit of the quarter after that. We adjusted our quarterly payments for 2019, so the overpayment will be less as the goal is not overpay at all.
I still itemize, but now I am down from 4 to 3 dependent children and only 2 under 18. Nevertheless, itemizing still makes sense. No SALT limit issue here. Apparently I need to buy more real property and pay more property taxes.
As usual, I will probably receive my K1 on about April 10th. My CPA just loves this.
I will be taking the standard deduction this year, as I come no where close to the limit. Makes it a LOT easier.
I still hate that we have to play the, "guess what your bill is!" game every year. IRS, YOU ALREADY KNOW THE ANSWER!!!!
ugh...
I still hate that we have to play the, "guess what your bill is!" game every year. IRS, YOU ALREADY KNOW THE ANSWER!!!!
ugh...
Remember: You can thank Inuit's lobbyist for that.
