How's that tax cut working out?

[Dulanic]

So I got an early start on my taxes this year and it isn't good. Effective tax rate went up a little over 1%. I thought this was a middle class tax cut? Even claiming 0 and having kids, I still owe a good amount.

How did others fare? I'm thinking a lot more middle class will be hurt than they were expecting. or correction, we were told should be expecting.... Shocking I know.... We all know this is going to hurt blue states more than red because that's how it was designed with the SALT cap. Upside is I save myself a couple hundred in not needing a tax guy. Of course that was more than offset in my taxes going up far more than he cost me.

Update for clarification - Income = W2 Box 1 Income (Taxable)

Edit: For more clarification this is talking effective tax rates because that is the only portion you can compare directly. Owe or Refund is meaningless without knowing what was paid in etc...

 

[JSt0rm]

ill let you know. My tax guy is just starting to chew on mine.

 

[Dulanic]

ill let you know. My tax guy is just starting to chew on mine.

Yeah, I know it's a tad early. Luckily most of my forms were ready earlier than usual. We'll see how it progresses. I wanted to add more to the poll, but I didn't want to make it 100 options.

 

[dank69]

I got back way too much last year so I adjusted my withholding way down and after some napkin math I'm still getting about a grand back. In my defense, it's my wife's fault. She paid more in taxes out of her part time job than I did in my full time job...

 

[overst33r]

your poll will be pretty lopsided, everyone here makes more than $200k

 

[dank69]

your poll will be pretty lopsided, everyone here makes more than $200k

Yeah that isn't enough to get even one supermodel draped on your arm.

 

[s0me0nesmind1]

Might want to clarify - Are income amounts listed for TAXABLE income only?

Tax reform definitely helped me. I had a decent more in taxable income this year - so

if I take my taxable income from 2018 and put into 2017 standards I would have paid a total of $26,100 in federal income tax.
Likewise, if I put that same 2018 amount into my 2018 calculator I will pay a total of $20,500.


So that amounts to almost $6,000 less in tax for me.

Majority of people here should be taking the standard deduction unless you're a baller - so it should be easy to calculate.

 

[Dulanic]

Income = W2 Box 1 Income. Aka Taxable.

 

[s0me0nesmind1]

For those that vote tax rate up: Would be useful to know where you live since I'm guessing that played a factor (HCOL)

 

[UNCjigga]

So far I'm fixing to owe about $2k all told...but not done yet. Usually I only owe a few hundy in state taxes and get a federal refund, but not anymore.

 

[xVaSSagox]

I just calculated what my taxes would be with last year's numbers filing as joint with 1 child. Unfortunately, I live in CA and the SALT cap affects me so I would have to take the standard deduction this year(I itemized for about 28k). However, now that the Child Tax Credit has been expanded, I'm able to take advantage of that so overall my tax went down about 585. If I didn't have my kid, my tax would have been about 1400 higher.

 

[Linux23]

since SALT is capped, FMFL. NJ.

 

[Chaotic42]

I haven't gotten my forms in yet, but I got a decent raise last year, so the numbers will go up. I also transferred back to working inside the city limits of Saint Louis, so I have to pay their stupid 1% off the top tax now as well.

 

[fleshconsumed]

Just installed TurboTax and put in whatever information I have on hand which includes W-2, mortgage interest, property taxes, and 1099-INT. I'm still missing 1099-DIV which will push my tax burden even higher. So far my deductions went down from about $24K to $17K, my refund went from $3,500 down to $600, effective tax rate went up by 2.5% from 12.26% up to 14.78%. I presume that after I get my 1099-DIV my refund will go down to 0, so the so-called "Tax Cut" will end up costing me $3,500. I usually use my Federal Tax refund to pay mid year property tax installment since the timing lines up nicely, but not this year.

Thanks Trump and GOP! When am I supposed to get tired of winning?

Personally I'll be fine, I spend less than what I make and I have savings in the bank. I'm just pissed that I have to pay more so that tippity top can pay less. Fuck that.

I bet there will be a lot of really angry people once they run the numbers because they didn't see this "Tax Cut" for what it is. No wonder GOP wrote the law so that it would take effect after the midterms. Lots of dumb people out there.

 

[zinfamous]

We need to bring back the rail.

The line waiting just to help carry Trump out of town will be bigly yuuuge!

lol--someone already made a shop

https://twitter.com/bitterbrewster

hah! This gal does good work

 

[Bitek]

.. I'm just pissed that I have to pay more so that tippity top can pay less. Fuck that.

I bet there will be a lot of really angry people once they run the numbers because they didn't see this "Tax Cut" for what it is. No wonder GOP wrote the law so that it would take effect after the midterms. Lots of dumb people out there.

I've been saying this since it passed.

Even if your paycheck changed right after the new rates went into effect, it's just now that people are going to see the real change due to the deduction rule changes.

Just remember too that the deficit blew up to ~$1T/yr, and the S&P500 is ~flat since the law was signed. It was a heist of the treasury by the donor class.

 

[s0me0nesmind1]

So part of it was just making it less attractive to live in HCOL liberal states - but I'm curious what their overall agenda is if that were so.

It's not like getting liberals in California to start moving to TX (Austin) is going to change their voting.... though I guess they start contributing to tax dollars there.... of course that comes of a vote.

 

[sactoking]

I'm getting a bunch of money back this year, though that's mostly due to a bunch of life/economic changes on my end last year and doing a piss poor job of estimating how much I'd owe under the new laws. Waiting to get my last few docs so I can finalize and start analyzing how the changes affected me.

 

[sportage]

Interesting and necessary thread....
My sis, a tax consultant, has been warning people to WATCH OUT come 2019 tax time.
People fail to realize the real harm Trump's tax revamp will hurt the middle class.
Exemptions will be capped.
One thinks he or she will get back the full exemption for a child as in the past, not anymore.
Now in 2019, that exemption will be capped and fall under strict limits.
And that only covers exemptions. A lot more horror is waiting at your local tax preparer office.
And remember, if anyone asks what the hell happened, just tell them Trump did it.
Enjoy.

 

[dank69]

Just installed TurboTax and put in whatever information I have on hand which includes W-2, mortgage interest, property taxes, and 1099-INT. I'm still missing 1099-DIV which will push my tax burden even higher. So far my deductions went down from about $24K to $17K, my refund went from $3,500 down to $600, effective tax rate went up by 2.5% from 12.26% up to 14.78%. I presume that after I get my 1099-DIV my refund will go down to 0, so the so-called "Tax Cut" will end up costing me $3,500. I usually use my Federal Tax refund to pay mid year property tax installment since the timing lines up nicely, but not this year.

Thanks Trump and GOP! When am I supposed to get tired of winning?

Personally I'll be fine, I spend less than what I make and I have savings in the bank. I'm just pissed that I have to pay more so that tippity top can pay less. Fuck that.

I bet there will be a lot of really angry people once they run the numbers because they didn't see this "Tax Cut" for what it is. No wonder GOP wrote the law so that it would take effect after the midterms. Lots of dumb people out there.

Have you tried just taking the standard deduction?

 

[dank69]

So part of it was just making it less attractive to live in HCOL liberal states - but I'm curious what their overall agenda is if that were so.

It's not like getting liberals in California to start moving to TX (Austin) is going to change their voting.... though I guess they start contributing to tax dollars there.... of course that comes of a vote.

The overall agenda is fuck you liberals. Something you are very familiar with.

 

[s0me0nesmind1]

Interesting and necessary thread....
My sis, a tax consultant, has been warning people to WATCH OUT come 2019 tax time.
People fail to realize the real harm Trump's tax revamp will hurt the middle class.
Exemptions will be capped.
One thinks he or she will get back the full exemption for a child as in the past, not anymore.
Now in 2019, that exemption will be capped and fall under strict limits.
And that only covers exemptions. A lot more horror is waiting at your local tax preparer office.
And remember, if anyone asks what the hell happened, just tell them Trump did it.
Enjoy.

Anyone that wasn't taking the standard deduction in 2017 isn't in the middle class..... They are very much in the comfy/cushy upper-middle class (Top 20%).

Quit trying to misconstrue bullshit and learn what the middle-class ACTUALLY is.

Also what the fuck are you talking about with "exemptions" being capped? Tax exemptions basically swapped a $4,000 INCOME DEDUCTION and replaced it with a $2,000 TAX CREDIT.

The tax credit is infinitely better than a deduction.

You and your spouse were also each entitled to a $4,050 personal exemption in 2017.
Beginning with the 2018 tax, exemptions are no longer used as a deduction from your income in calculating your income tax. Instead, new tax laws allow you to claim a dependent credit, either $500 or $2,000 depending on the status of the dependent. Many of the test for claiming a dependent credit remain the same as they were for claiming exemption deductions.

 

[soundforbjt]

So part of it was just making it less attractive to live in HCOL liberal states - but I'm curious what their overall agenda is if that were so.

It's not like getting liberals in California to start moving to TX (Austin) is going to change their voting.... though I guess they start contributing to tax dollars there.... of course that comes of a vote.

Texas doesn't have a state income tax, iirc.

 

[s0me0nesmind1]

Texas doesn't have a state income tax, iirc.

It doesn't - but tax contributions to the state aren't limited to just income.

States tend to focus on Income tax, sales tax, or property tax.... and usually they only focus on 2 out of those 3 instead of all 3 (outside of stupid ones like NY, IL, and CA)..

For example in TX they focus on a medium high sales tax (8.25%), and high on property taxes (but low property values). So if people are moving to those states, they will be contributing - just not directly with income taxes.

 

[s0me0nesmind1]

I want to hear from the 2 people that voted Tax Rate Went Up - Income $0-50K

I say that because I'm genuinely curious how thats possible unless you itemized on your 2017 return... which is pretty hard to do with an income of < $50k.