Taxes, taxes, taxes and LESS TAXES... wait, what?!?!?

[DoggyDaddy]

Unless you can itemize $24,000 worth of deductions, you'll be taking the standard.

12,000 if single...

 

[ATOMonkey]

Ah yes...

Being hitched does have it's benefits.

Still, the standard deduction is twice what it was last year, regardless of marital status, correct?

 

[T.Lex]

Unless you can itemize $24,000 worth of deductions, you'll be taking the standard.

So, in years past, that was not a problem. (Not by design really, just because that's how we live.)

Some of the changes impacted the extent to which we could make certain deductions - like the mortgage interest and state taxes.

I basically have to itemize like I always do to determine if I exceed the $24k. Which means it could be an exercise in futility.

Which isn't that different than past years, in that respect.

 

[DoggyDaddy]

Ah yes...

Being hitched does have it's benefits.

Still, the standard deduction is twice what it was last year, regardless of marital status, correct?

Yep, that's correct. Looks like they're going up a little for 2019 (filing 2020).

Standard Deduction Amounts. The standard deduction amounts will increase to $12,200 for individuals, $18,350 for heads of household, and $24,400 for married couples filing jointly and surviving spouses.

https://www.forbes.com/sites/kellyp...dard-deduction-amounts-and-more/#2bb21e392081

 

[SheepDog4Life]

My income went up almost exactly 5% in 2018. (Odd coincidence, but it happens.) My taxes owed went up ~10%. (Still working on it, but it looks like it'll be in that range.)

Not. Happy.

This is how progressive taxes work... if your taxes only went up by 5% also, that would be borderline regressive

 

[T.Lex]

This is how progressive taxes work... if your taxes only went up by 5% also, that would be borderline regressive

I understand how its supposed to work.

And, if I'd crossed into a higher bracket, it would make sense. (I was literally about 1% away from a higher bracket last year. I couldn't have gotten any closer if I'd tried!)

Instead, I'm at a lower percentage bracket, but paying a higher percentage of my income in taxes.

I also recognize that I'm probably in the minority on this. But (because I voted?) I can still complain.

 

[HoughMade]

Unless you can itemize $24,000 worth of deductions, you'll be taking the standard.

Hold my unsweetened iced tea.....

 

[KMaC]

Ah yes...

Being hitched does have it's benefits.

Still, the standard deduction is twice what it was last year, regardless of marital status, correct?

But the personal exemption has been eliminated. The new standard deduction is slightly more than the old personal exemption plus the standard deduction.

 

[HoughMade]

Screw all this. I just declared HoughMade Meadows a sovereign state.

You can take your fringed flags and shove 'em.

 

[KMaC]

You guys made me curious how I came out in the Trump tax reform.
Background, I'm single, filed standard deductions both 2017 and 2018.
My income went up 27% in 2018 due to receiving Social Security.
While I paid a couple thousand more in taxes this year my tax liability (Percent of Adjusted gross income amount due for taxes) went down .9%.
I'm not interested enough to recalculate my 2017 taxes with 2018 income to see an exact savings in dollars, the tax reform has saved me money.

 

[JettaKnight]

But the personal exemption has been eliminated. The new standard deduction is slightly more than the old personal exemption plus the standard deduction.

Wha? For a couple it's still ~$4000 away, right?

 

[Hohn]

If nothing else, this year's tax season will show many people just how little that nominal rate has to do with actually calculating their taxes.

I'm thrilled at the SALT deduction being capped. Heck, I was hoping it would be eliminated. Why?

With full deductibility of SALT taxes, those who vote for higher and higher taxes end up getting subsidized by people who live in lower cost-more frugal areas. And since those high cost of living areas are overwhelmingly wealthy and liberal, I viewed it as a chance to get those folks who always want more spending and who claim to be OK with having their taxes raised to show just how much of a fan they are of the gov't do-good schemes.

It's perverse to reduce someone's FEDERAL taxation based on how much LOCAL tax they pay. They voted for that local tax (in most cases) and in all cases, chose to remain located there. Let them feel the full burden of that decision, and not offload that burden to those who've chosen more modest and lest costly local government.

 

[Kutnupe14]

I'm interested to hear how the change in itemized deductions has affected LEOS. In some places it might be a pretty significant hit.

 

[T.Lex]

If nothing else, this year's tax season will show many people just how little that nominal rate has to do with actually calculating their taxes.

I'm thrilled at the SALT deduction being capped. Heck, I was hoping it would be eliminated. Why?

With full deductibility of SALT taxes, those who vote for higher and higher taxes end up getting subsidized by people who live in lower cost-more frugal areas. And since those high cost of living areas are overwhelmingly wealthy and liberal, I viewed it as a chance to get those folks who always want more spending and who claim to be OK with having their taxes raised to show just how much of a fan they are of the gov't do-good schemes.

It's perverse to reduce someone's FEDERAL taxation based on how much LOCAL tax they pay. They voted for that local tax (in most cases) and in all cases, chose to remain located there. Let them feel the full burden of that decision, and not offload that burden to those who've chosen more modest and lest costly local government.

Hi. I'm here in Indiana. I kinda preferred not having to pay taxes to the feds on income that was taken from me by my state and county.

 

[KMaC]

Wha? For a couple it's still ~$4000 away, right?

2017 exemption $4050/person x 2 = $8100 + $12,700 married standard deduction =$20,800
2018 married standard deduction $24,000.
2018 still a win.

 

[PaulJF]

Due to illness our income decreased by 23%. We changed nothing in withholding. We usually owe both state and federal at tax time. This year we are receiving a substantial refund from federal and enough from state to pay our accountant for filing. I haven't had the time or energy to figure our actual liability vs last year.

 

[JettaKnight]

2017 exemption $4050/person x 2 = $8100 + $12,700 married standard deduction =$20,800
2018 married standard deduction $24,000.
2018 still a win.

...unless you did, and still will fill out sch. A; now your taxable income is up $8100.

 

[T.Lex]

...unless you did, and still will fill out sch. A; now your taxable income is up $8100.

^^^ This.

 

[KMaC]

My example is for the simplest tax form, standard deduction.

 

[jedi]

short summary
in the end uncle sam still wins, just like the house always wins in poker. uncle sam is not in the biz of lossing. ingo member 1 might win but those winnings are offset by ingo member 2 and 3 having lost much more.