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That's why we chose to live in a mid size metro area. More house, lower property taxes. Our property taxes are around 2 percent of our home value, and we get more house for the money too.
I think the American Public is now finding out that this Tax Cut was just a Shell Game. The Increase of some deductions, combined with the removal of some exemptions creates a larger Tax Bill for certain Incomes. Even the slightly lower Tax Brackets won't help too much when it comes time to actually fill out the 1040 Form.
The Witholding Tables were jiggered up last January to give the appearance of a larger paycheck.....surprise !!
Why do you think the do-nothing Congress rushed to pass this Bill ?? It was practically the only thing they accomplished that year !!
Last edited by FiveLoaves; 01-14-2019 at 08:10 AM..
Part of the issue is that far too many people simply don’t understand how this all works. A lot of people think they pay more in fed tax then they actually do, marginal rates vs effective rates are mind boggling
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Quote:
Originally Posted by FiveLoaves
I think the American Public is now finding out that this Tax Cut was just a Shell Game. The Increase of some deductions, combined with the removal of some exemptions creates a larger Tax Bill for certain Incomes. Even the slightly lower Tax Brackets won't help too much when it comes time to actually fill out the 1040 Form.
The Witholding Tables were jiggered up last January to give the appearance of a larger paycheck.....surprise !!
... the only thing they accomplished that year !!
yes, as ALWAYS... it was a 'perception problem' for OP (Actually...more $ throughout the yr SHOULD = less OVERPAYMENT (that is a GOOD thing! BTW)..
Part of the issue is that far too many people simply don’t understand how this all works. A lot of people think they pay more in fed tax then they actually do, marginal rates vs effective rates are mind boggling
equally mind boggling... Why would someone WAIT until 2019 to understand what happened to their 2018 tax OBLIGATION?
You really want to figure this stuff out when you can still do something about it!
The new law / numbers tweaked my Effective rate! There is not nearly the latitude to dink with the number to get <5% effective rate (my usual rate). Not with new law... to get below 8% (Effective rate) is very difficult (but was finally possible) figured that out in Nov.
i don't understand why though. I haven't changed anything on my end. Could my employer have? Salary was almost the same. Fed witholdings was different.
You paid less tax upfront. Therefore, your overpayment is less. Smaller refund.
Ran it through 2 estimators (taxact and turbo tax)
Noticed the refund was almost half of last years?
Has anyone else noticed this? Is this because of the tax reform?
Tax refund is completely a function of taxes paid in (via withholdings set by your respective W4s) vs. Tax owed (based on income, deductions, etc.).
The tax withholding tables may have changed, but it behooves you to review (perhaps with a tax professional) how much is withheld compared to anticipated taxes owed. There should hardly be many surprises if you are paying attention.
You could simply determine your total burden and divide by the number of pay periods to see if you are in the ball park of where you need to be. For me, the closer to zero owed or refunded, the better, but YMMV.
equally mind boggling... Why would someone WAIT until 2019 to understand what happened to their 2018 tax OBLIGATION?
You really want to figure this stuff out when you can still do something about it!
Are you still on here making wild-eyed assumptions about every post ?!?
I simply stated that the American Public is just now beginning to see that the "Biggest Tax Cut Ever" was nothing more than a political stunt. After all the dust settled.....some folks are going to be surprised at what they owe.
The changes to the withholding tables led some people to think their taxes were being reduced significantly -- many of them are now shocked that they are not getting a huge refund, but might actually have to write a check to cover their burden.
Your baseless assumption that I am a wage slave, and not a business owner is wrong on both counts !! And your equally mind-boggling assertion that I waited all year to take action is way off the mark. I had this figured out last February, just as any smart business owner would do. I will not feel the impact that many middle class tax payers are going to be faced with.
There is an expression in the English language that you would do well to try to understand -- It has to do with the word "Assume" and it is very apropos to your posting habits.
Part of the issue is that far too many people simply don’t understand how this all works. A lot of people think they pay more in fed tax then they actually do, marginal rates vs effective rates are mind boggling
Exactly! The losers in this new tax plan are high earners in blue states.
The Trump administration wanted people to feel the tax cuts they got immediately, so yes, chances are some people will either owe or not get as big a refund. But most middle class people should see a cut in their total tax bill and at the end of the day, THAT'S what's important, not how big of of a refund one gets.
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