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Old 03-03-2019, 01:55 PM
 
Location: 10110001010110100
6,380 posts, read 10,696,053 times
Reputation: 5585

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Quote:
Originally Posted by SuiteLiving View Post
It's not the W2 that's the issue, it's the state and local tax deduction that is capped that's causing the bigger issues (along with the loss of the personal exemptions).

Mortgage interest is still deductible, it's just the amount is restricted for new mortgages more than it used to be.
Well, I guess the tax guy didn't know what he was talking about or I misunderstood.

But yeah, individual expenses/itemization was capped to 12K.

Quote:
Originally Posted by Grlzrl View Post
You are blaming the wrong person. You should be blaming California for their sky high taxes.
but you are mistaken about the state/local tax part because I got more back from CA than I ever did before where Federal return, despite same withholding, was about 1/3 of normal amount. All due to personalized deductions being excluded from Federal (CA still excepted them).

I am glad to hear some of you were able to get breaks and pay less but I still do not get why he excluded personal exemptions when using W2. That part is BS and definitely will affect everyone in my situations.
Legit expenses not being included is ridiculous and unfair.
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Old 03-03-2019, 02:30 PM
 
333 posts, read 239,013 times
Reputation: 335
I finally got around to doing mine.

Effective rate went from 8% last year to 11% this year. Partially due to increase in salary. Looking at equivalent income it still was up 1.5% at 9.5%

Most of this was due to salt cap and personnel exemptions. Wasn’t worth itemizing anymore and used the standard deduction. Feds got about 19k.
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Old 03-03-2019, 02:35 PM
 
1,153 posts, read 525,639 times
Reputation: 1236
Quote:
Originally Posted by TurcoLoco View Post
Well, I guess the tax guy didn't know what he was talking about or I misunderstood.

But yeah, individual expenses/itemization was capped to 12K.



but you are mistaken about the state/local tax part because I got more back from CA than I ever did before where Federal return, despite same withholding, was about 1/3 of normal amount. All due to personalized deductions being excluded from Federal (CA still excepted them).

I am glad to hear some of you were able to get breaks and pay less but I still do not get why he excluded personal exemptions when using W2. That part is BS and definitely will affect everyone in my situations.
Legit expenses not being included is ridiculous and unfair.
Personal exemptions are gone period, W2 or not.

People have lots of legit expenses (food, clothing, insurance, gas, etc.) that aren't allowed to be deducted for federal income tax purposes. Why should state and local taxes be any different?
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Old 03-03-2019, 09:34 PM
 
134 posts, read 231,213 times
Reputation: 162
Just finished mine. Effective tax rate decreased from 14.76% to 13.71%. Unfortunately, I’m not tax savvy, and didn’t re-evaluate my withholdings...went from owing Fed $700 last year to $2300 this year. State refund went up from $1000 to $1200.

I have to admit, I was a little surprised that I didn’t fare a little better with the tax changes. I live in a very low COL state (AL), with property taxes of only $2700/year, so I thought i wouldn’t be as affected as others in high COL states. Essentially, it appears that I’ll be giving back every penny that was put into my paychecks with the new withholding tables (and I have had an extra $150 taken out of each paycheck for several years to keep from owing even more at the end of the year).

Looks like I’ll be increasing my withholdings when I get into work tomorrow.
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Old 03-04-2019, 12:22 AM
 
Location: 10110001010110100
6,380 posts, read 10,696,053 times
Reputation: 5585
Quote:
Originally Posted by SuiteLiving View Post
Personal exemptions are gone period, W2 or not.
I believe self-employed, filling schedule C, you are still getting the same break, which seems unfair that you are not allowed itemized expenses for exemption. The whole omitting of personal exemptions doesn't benefit anyone other than government holding onto more $$ so how does that make the new changes better than before?

Quote:
People have lots of legit expenses (food, clothing, insurance, gas, etc.) that aren't allowed to be deducted for federal income tax purposes. Why should state and local taxes be any different?
The base 12K is for the basic necessities and that it still there. I don't understand the last question. Why would the state and local taxes have to be same or follow the same logic as the Federal?

Regardless, as I mentioned before, there was no such change with CA state calculations as I am getting about the same (a little more due to income increase).

I really would like to know how and what percentage of the people are actually benefiting from the new tax laws.

Most everyone I spoke to is in the same situation as I am or worse of, hence my previous question.
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Old 03-04-2019, 12:38 AM
 
Location: San Antonio/Houston/Tricity
37,992 posts, read 55,769,955 times
Reputation: 89727
Not yet.
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Old 03-04-2019, 05:51 AM
 
Location: Censorshipville...
2,711 posts, read 6,264,230 times
Reputation: 1579
Average tax refund is now up 1.3% as same time last year according to IRS: https://www.irs.gov/newsroom/filing-...bruary-22-2019

https://www.usatoday.com/story/money...ar/3018531002/

Hopefully the good news starts to spread?

For TurcoLoco:
Quote:
These scenarios donít mean Americans are paying more in total taxes for 2018. In fact, itís largely the opposite. The Tax Policy Center estimated that four in five taxpayers will get a tax cut. Only 5 percent would pay more. The rest would have roughly the same tax liability.
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Old 03-04-2019, 06:24 AM
 
333 posts, read 239,013 times
Reputation: 335
Quote:
Originally Posted by oneasterisk View Post
Average tax refund is now up 1.3% as same time last year according to IRS: https://www.irs.gov/newsroom/filing-...bruary-22-2019

https://www.usatoday.com/story/money...ar/3018531002/

Hopefully the good news starts to spread?

For TurcoLoco:
I hope they present the average liability change, and or effective tax changes by state and total. Would be interesting to see what the effect of the SALT cap is.

The returns are just too variable especially with withholding's changing.
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Old 03-04-2019, 06:38 AM
 
71,550 posts, read 71,730,589 times
Reputation: 49155
just did ours .. was 8% effective last year , 7% this year
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Old 03-04-2019, 07:23 AM
 
333 posts, read 239,013 times
Reputation: 335
Just out of curiosity but also to stay somewhat consistent. Are people using AGI to determine effective tax, or are they using everything they have earned including at pretax deductions?
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