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Old 02-19-2019, 06:21 PM
 
Location: USA
162 posts, read 80,773 times
Reputation: 325

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So far, Twitter is blowing up with the results of working class tax returns. They're not good! I wonder how the average CD'r is doing? Myself, I'll most likely benefit (businesses, higher AMT exclusions, etc...).
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Old 02-19-2019, 08:00 PM
 
Location: Boston
6,275 posts, read 1,853,306 times
Reputation: 4573
Working class doesn't realize their tax cut is included in every paycheck.
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Old 02-19-2019, 09:02 PM
 
11,242 posts, read 20,824,231 times
Reputation: 10656
The working class don't really pay much in tax to begin with, I should know - I are one!!

Ok, maybe not right now, but I was, and I didn't pay that much in taxes.
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Old 02-20-2019, 04:14 AM
 
12,767 posts, read 6,669,873 times
Reputation: 23532
I had a big pile of 1099 income with self employment tax. I knew my tax liability to the penny as I was earning the money and set it aside for quarterly estimated tax payments. I kind of roll my eyes at people who get to tax filing season without a clue what their tax liability is going to be. That should have all been something you worked out a year ago so you're withholding the correct amount.
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Old 02-20-2019, 10:00 AM
 
Location: USA
162 posts, read 80,773 times
Reputation: 325
Yes, the media is constantly harping the "withholding" line. However, Twitter users are suggesting the 'untalked' about 'other.' The deletion of decades long "working class" tax credits.

Their biggest complaint seems to follow: If my taxes are being lowered (as claimed) and the reduction of withholding rates (doesn't require legislation) - (enacted quickly to impact the 2018 election) are in line with the tax reduction, then why do they sometimes owe thousands more in taxes?

Remember when the Speaker (at the time) bragged how some teacher could now afford a CostCo membership because of her tax savings?? Some low amount of change like $20/month(??). That would be a tax 'savings' of $240/yr. So how does that teacher (who now gets no credit for buying teaching supplies) now get a tax 'bill' of $1500?? That isn't a 'withholding' issue (keep in mind, the working class was supposed to make 'more' so the reduction in withholding was essentially their tax savings).

Any comments or insights? #GOPTaxSCAMStories
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Old 02-20-2019, 10:29 AM
 
12,767 posts, read 6,669,873 times
Reputation: 23532
Quote:
Originally Posted by SE1SG View Post
Yes, the media is constantly harping the "withholding" line. However, Twitter users are suggesting the 'untalked' about 'other.' The deletion of decades long "working class" tax credits.

Their biggest complaint seems to follow: If my taxes are being lowered (as claimed) and the reduction of withholding rates (doesn't require legislation) - (enacted quickly to impact the 2018 election) are in line with the tax reduction, then why do they sometimes owe thousands more in taxes?

Remember when the Speaker (at the time) bragged how some teacher could now afford a CostCo membership because of her tax savings?? Some low amount of change like $20/month(??). That would be a tax 'savings' of $240/yr. So how does that teacher (who now gets no credit for buying teaching supplies) now get a tax 'bill' of $1500?? That isn't a 'withholding' issue (keep in mind, the working class was supposed to make 'more' so the reduction in withholding was essentially their tax savings).

Any comments or insights? #GOPTaxSCAMStories

This is kind of nonsense. Let's say that "working class" has a $50K AGI cutoff. $25/hour. Filing single and taking the standard deduction, that's $4,375 in Federal income taxes. Your effective tax rate is less than 9%. Married, an AGI of $100K has the same numbers. You're still in the 12% bracket. The working class hardly pays any Federal income tax at all.
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Old 02-20-2019, 11:36 AM
 
25,009 posts, read 32,048,592 times
Reputation: 30410
The media is clueless. Anyone with any common sense knew to check their withholdings.
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Old 02-20-2019, 11:48 AM
 
Location: USA
162 posts, read 80,773 times
Reputation: 325
Cheesie,

The point is..... this was sold as a "TAX CUT."

So if your withholdings went "down" $20 per month for a total of $240 for the year, then wouldn't that equal the "tax cut?"

Yet, a lot of people are seeing a "tax INCREASE" because they're paying MORE (taxes) than last year.


Their argument is that #1: Their pay didn't change. #2: Their withholding dropped $20 (SOLD AS THEIR NEW TAX CUT) then....... their return should be the same as last year. #3 Its NOT! Its FAR LESS. So they're saying, yes their tax was cut, but it was their tax "REFUND" that was cut. And that "CUT" in refund FAR EXCEEDED what they 'SAVED' in withholding cuts.
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Old 02-20-2019, 01:02 PM
 
25,009 posts, read 32,048,592 times
Reputation: 30410
Quote:
Originally Posted by SE1SG View Post
Cheesie,

The point is..... this was sold as a "TAX CUT."

So if your withholdings went "down" $20 per month for a total of $240 for the year, then wouldn't that equal the "tax cut?"

Yet, a lot of people are seeing a "tax INCREASE" because they're paying MORE (taxes) than last year.


Their argument is that #1: Their pay didn't change. #2: Their withholding dropped $20 (SOLD AS THEIR NEW TAX CUT) then....... their return should be the same as last year. #3 Its NOT! Its FAR LESS. So they're saying, yes their tax was cut, but it was their tax "REFUND" that was cut. And that "CUT" in refund FAR EXCEEDED what they 'SAVED' in withholding cuts.
If it was sold as a “ tax cut” I guess I didn’t read the brochure. I read that I needed to check my withholdings to make sure I was having enough taxes withheld. My taxes did not increase. From 2017 to 2018, my income increased 4K, and my federal tax liability decreased by $500.

And no...if my withholding goes down...that certainly does not mean there has been a tax cut. It means the tax tables have been revised. Jeez. How do people not understand this?
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Old 02-20-2019, 01:26 PM
 
11,242 posts, read 20,824,231 times
Reputation: 10656
Quote:
Originally Posted by SE1SG View Post
Cheesie,

The point is..... this was sold as a "TAX CUT."

So if your withholdings went "down" $20 per month for a total of $240 for the year, then wouldn't that equal the "tax cut?"

Yet, a lot of people are seeing a "tax INCREASE" because they're paying MORE (taxes) than last year.


Their argument is that #1: Their pay didn't change. #2: Their withholding dropped $20 (SOLD AS THEIR NEW TAX CUT) then....... their return should be the same as last year. #3 Its NOT! Its FAR LESS. So they're saying, yes their tax was cut, but it was their tax "REFUND" that was cut. And that "CUT" in refund FAR EXCEEDED what they 'SAVED' in withholding cuts.
The data doesn't support your view. You're pretty much just making numbers up out of thin air.
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