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Old 01-13-2019, 07:58 PM
 
18,719 posts, read 13,492,794 times
Reputation: 14107

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Quote:
Originally Posted by happygeek View Post
Well this is the Personal Finance forum, so spend less
I wasn’t looking for input on my spending or taxes. You stated you were at a loss at to how anyone was doing worse and the SALT limitation is a major one so I figured I’d mention it so you wouldn’t be at such a loss
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Old 01-13-2019, 07:59 PM
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
3,972 posts, read 1,826,923 times
Reputation: 3025
Retired. August consult with tax accountant, said that we should increase quarterly estimated tax. He and his software firm weren't sure and advise to be conservative until more tax information became available.
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Old 01-13-2019, 11:31 PM
 
792 posts, read 909,734 times
Reputation: 934
Quote:
Originally Posted by LowonLuck View Post
Umm no. Tax laws were changed.

I have always had close to same income and withholding, which is almost zero. I got massive refunds thanks to EITC, child and mortgage interest deduction. My change is directly related to the tax change.
So let me get this straight.

You get 6-8k back annually.
You get an EITC.
You self admit that withholding is near $0.

Bravo to you. You have beat the system.

This is America for you. I need to have a **** load of kids and get a minimum wage job where I can ***** about higher pay so I can get refunds like this instead of sending the govt my money.
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Old 01-13-2019, 11:51 PM
 
Location: Georgia, USA
23,272 posts, read 28,068,309 times
Reputation: 28716
Quote:
Originally Posted by LowonLuck View Post
Umm no. Tax laws were changed.

I have always had close to same income and withholding, which is almost zero. I got massive refunds thanks to EITC, child and mortgage interest deduction. My change is directly related to the tax change.
No law changes result in a change in how a refund is calculated. It is always the difference between what you owe - after all of those credits and deductions - and how much is withheld. If you want a big refund ask your employer to withhold less tax. After you prepare your return the amount of tax you owe will be the same. A big refund does not mean you owe less tax. You owe less tax because of the deductions and credits.

Now, if those deductions and credits changed you may owe more tax. Owing more tax with the same amount withheld will decrease the size of your refund.
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Old 01-14-2019, 12:13 AM
 
Location: California
30,513 posts, read 33,322,731 times
Reputation: 25982
Quote:
Originally Posted by LowonLuck View Post
I have always received $6-$8k refunds. Not getting anywhere close to that this year. I hate Trump. I will have a massive party when he dies
You're an idiot if you get a $6k refund so I'm not surprised you're also suffering from TDS.

Mine may go up a bit this year due to certain deductions being limited, but then I made a point to put the max into my HSA and Roth IRA so maybe not. I'm also claiming a dependent this year, but I'm not sure if that matters anymore. I'll find out in a month or two when I finally get all my paperwork and run it all through Turbo Tax.
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Old 01-14-2019, 05:11 AM
 
Location: Suburban wasteland of NC
312 posts, read 184,069 times
Reputation: 290
Quote:
Originally Posted by Lowexpectations View Post
I wasn’t looking for input on my spending or taxes. You stated you were at a loss at to how anyone was doing worse and the SALT limitation is a major one so I figured I’d mention it so you wouldn’t be at such a loss
Quote:
Originally Posted by happygeek View Post
The deletion of personal exemptions does change the dynamic. A couple with one kid ends up with a wash vs last year, for example, because their standard deduction goes from 12k to 24k but they lose their 3x exemptions. However the child tax credit was raised to offset that, and you have to make pretty decent money to phase out of that one.

Thanks to the CTC increase we should do almost exactly the same as tax year 2017, even with slightly less withheld. I'm a little lost as to how anyone is doing worse, barring circumstances such as

a mortgage over $750,000
getting reamed by CA for north of 10k in state taxes
employed by NAR (https://money.cnn.com/2017/11/03/inv...ers/index.html)

We had more in personal exemptions than the standard deduction in tax year 2017 and we are still looking at an overall wash.
CA and NY have been in the news over the last year with their local politicians hating the tax change. New York, New Jersey, Connecticut and Maryland sued. The question is to the Texas example with a 6.25% state sales tax, no sales tax on groceries, and no state income tax.
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Old 01-14-2019, 05:17 AM
 
Location: Central New Jersey
2,311 posts, read 877,007 times
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Refunds as well as payments to the IRS should be less as the tax structure has changed. Read somewhere last week, either Fortune or Kiplingers, it should average to about a grand less either way.
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Old 01-14-2019, 05:47 AM
 
3,002 posts, read 4,212,184 times
Reputation: 3651
Quote:
Originally Posted by happygeek View Post
The deletion of personal exemptions does change the dynamic. A couple with one kid ends up with a wash vs last year, for example, because their standard deduction goes from 12k to 24k but they lose their 3x exemptions. However the child tax credit was raised to offset that, and you have to make pretty decent money to phase out of that one.
One detail to keep in mind here - child tax credit only goes up to kids 16 years of age. The dependent exemption was allowed for full time students up to age 24.
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Old 01-14-2019, 06:25 AM
 
1,875 posts, read 629,326 times
Reputation: 4878
Quote:
Originally Posted by happygeek View Post
I'm a little lost as to how anyone is doing worse, barring circumstances such as
a mortgage over $750,000
getting reamed by CA for north of 10k in state taxes
<snip>
I'm a 65-year old widow so I file Single with no dependents. The SALT limit doesn't affect me because I'm in a LCOL area but I lose the Personal Exemption, the Miscellaneous Deduction (I have advisory fees on two of my investment accounts) and the increased Standard deduction is useless. My SALT plus Medical plus mortgage interest put me over the top and those can't be "bunched" so that they exceed the Standard deduction in one year but are below it the next. The whole tax structure that sets thresholds for singles at half that for Marrieds is rotten. When my husband died my expenses sure didn't get cut in half.

In my case, the lost deductions are not made up for by lower tax rates.
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Old 01-14-2019, 06:42 AM
 
Location: OHIO
2,315 posts, read 1,051,606 times
Reputation: 5287
It predicts I will owe I have never owed. I don't know what I could have messed up, but I must have fudged up something.
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