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Old 02-18-2019, 10:49 AM
 
18,854 posts, read 13,601,877 times
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Quote:
Originally Posted by michgc View Post
I am not following what you are saying here.

In 2017 our itemized deductions were $27K.
In 2018 our itemized deductions would have been $26K had there not been a tax law change. With the new limits on SALT, our itemized deductions came to $21K, therefore we took the standard deduction of $24K. So we lost out on $2K of deductions due to the new tax law.
I misread your post, I thought you said you had 24k in itemized deductions in 2017, I reread it and see you said you have over 24k. I apologize
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Old 02-18-2019, 11:07 AM
 
Location: Chapel Hill, NC, formerly DC and Phila
8,572 posts, read 12,669,405 times
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Quote:
Originally Posted by Lowexpectations View Post
I misread your post, I thought you said you had 24k in itemized deductions in 2017, I reread it and see you said you have over 24k. I apologize
Aah, got it. I went back and reread what you wrote and what I wrote and figured out that may have been the case. No worries.
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Old 02-18-2019, 11:35 AM
 
Location: Censorshipville...
2,711 posts, read 6,263,219 times
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Quote:
Originally Posted by tgbwc View Post
In Virginia you arenít allowed to itemize if you standardize the federal return. We will itemize both even though we fall short of $24k.

In 2017 we paid $22,489 (~18%). $22,303 was withheld, so we owed a little.
In 2018 Just shy of $20k was withheld. About the same %. Slight salary bumps (Perhaps $5k total between the two). Taxable income took a big jump due to loss of deductions (SALT, child turned 18 and started college). We owe $6,100.
Why would you take the itemized deduction if it's lower than the standard? I'm in VA too, and I ran it both ways, standard and itemized just to see the effect on the Virginia taxes. Taking the standard deduction was the clear winner, not even close.

I'm currently getting a refund of $327 from Federal and owing VA $393. I messed around with the IRA contributions and if contribute $260 to my wife's IRA, it brings Federal to $382 return and $378 owed to VA state. If they're doing that $220 return in October, that'll almost pay for the contribution to the IRA.
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Old 02-18-2019, 12:53 PM
 
Location: Virginia
8,113 posts, read 12,682,638 times
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Quote:
Originally Posted by oneasterisk View Post
Why would you take the itemized deduction if it's lower than the standard? I'm in VA too, and I ran it both ways, standard and itemized just to see the effect on the Virginia taxes. Taking the standard deduction was the clear winner, not even close.

I'm currently getting a refund of $327 from Federal and owing VA $393. I messed around with the IRA contributions and if contribute $260 to my wife's IRA, it brings Federal to $382 return and $378 owed to VA state. If they're doing that $220 return in October, that'll almost pay for the contribution to the IRA.
We are better off itemizing rather than taking the standard. The difference between what we get back from VA and what we owe the fed is smaller if we itemize. If we itemize we owe $6,144 to the federal and get $1,108 back from the state (difference $5,133). If we do the standard we owe $5634 to the federal and get back $314 from the state (difference $5,320).
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Old 02-18-2019, 02:29 PM
 
Location: Niceville, FL
7,680 posts, read 16,098,271 times
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I think we itemized once in the past 20 years- low tax Florida, relatively cheap house that's now paid off.

We did a first pass on the taxes yesterday because we knew they were going to be messier than usual due to some annuities that were inherited and then cashed out. We need to set me up with an IRA (current household retirement savings are of the previously vested state pension plan and 401K variety) in order to knock back a little tax liability and then try again with TurboTax.

Since the rest of MIL's estate won't come with a tax hit when it clears probate, next year we should be back to 'normal'.
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Old 02-18-2019, 08:48 PM
 
Location: Phoenix, AZ
1,809 posts, read 2,085,240 times
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We just got tax info back from our preparer. Owe the Fed $2,380 and get back $574 from the state of AZ, so net loss of about $1,800. Actually not as bad as I thought given higher income and not knowing what we might owe due to wife's business. Total taxable income was about $178k with her business net profits. I was actually prepared to owe $5-10k in combined taxes so I'm good with this.
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Old 02-19-2019, 01:11 AM
 
6,878 posts, read 7,276,074 times
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Yeah. Getting back about $300. Thought I might owe a few bucks. So NOT owing is a pleasant surprise. No plans to change withholding for this year. Status quo, situation normal.
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Old 02-19-2019, 04:29 AM
 
Location: Ypsilanti, MI
2,439 posts, read 3,661,951 times
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I did the detailed itemization this year - fighting TurboTax all the way - and our total deductions from itemizing were less than the Standard Deduction. So we used the Std Deduction and are receiving total refunds , State and Federal, ~$3K larger than last year.

Two questions:
  1. Did anyone else have trouble with TurboTax not accepting amounts for itemization until the Early February updates?
  2. TurboTax is incapable of properly computing taxes for Michigan residents who are old enough to receive full non-taxable status on their pensions, and has no direct means to accommodate the recently enacted Imputed Income amounts every GM-UAW retiree receives for the free legal services provided to them. Have residents of other states discovered similar failings in TurboTax and other software packages? TurboTax treats the $22 of Imputed Income as a business profit, then insists on collecting data regarding a business which does not exist and reports the $22 on Schedule C as Business Income rather than as Miscellaneous Other Income.
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Old 02-19-2019, 06:55 AM
 
Location: East of Seattle since 1992, originally from SF Bay Area
29,777 posts, read 54,424,430 times
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Last year we got a refund of about $2,000. I did the taxes yesterday and for 2018 we have to pay out $420. The difference is the mortgage interest deduction, limited to $10,000 now and ours was closer to $15,000. We ended up getting the $26,000 standard deduction since our itemized fell below that. I have already changed the W4 for 2019 to come out closer to even. I prefer not to lend the government my money interest free, but also prefer not to pay out, so hopefully a minimal refund or balance next year.
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Old 02-19-2019, 07:15 AM
 
18,854 posts, read 13,601,877 times
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Quote:
Originally Posted by Hemlock140 View Post
Last year we got a refund of about $2,000. I did the taxes yesterday and for 2018 we have to pay out $420. The difference is the mortgage interest deduction, limited to $10,000 now and ours was closer to $15,000. We ended up getting the $26,000 standard deduction since our itemized fell below that. I have already changed the W4 for 2019 to come out closer to even. I prefer not to lend the government my money interest free, but also prefer not to pay out, so hopefully a minimal refund or balance next year.
I think youíve got some info wrong, the standard deduction isnít 26k and mortgage interest deduction isnít limited to 10k
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