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Old 03-04-2019, 07:24 AM
 
Location: Omaha, Nebraska
7,143 posts, read 4,076,668 times
Reputation: 17850

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I'm still waiting for my employer to issue a 1095C. Once that's done, everything's ready to go off to my accountant.
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Old 03-04-2019, 07:31 AM
 
1,131 posts, read 510,419 times
Reputation: 1205
Quote:
Originally Posted by TurcoLoco View Post
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?
I'm still not sure what it is your preparer told you. Individuals can still itemize deductions. The deduction for state and local taxes is capped at $10k and unreimbursed business expenses for employees was eliminated. The standard deduction was raised to $12k for single filers ($24k MFJ). If your itemized deductions exceed the standard deduction, you're still permitted the higher deduction.

Personal exemptions were eliminated.

Self-employed individuals who file a schedule C can deduct business expenses same as before.

Quote:
Originally Posted by TurcoLoco View Post
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.
The comment about state and local taxes was made because it sounded like you were taking exception to not being able to deduct all of your state and local taxes like you used to. If you weren't intimating that, I apologize.

As for CA not changing their tax system, that's irrelevant in a discussion about federal taxes. And as an aside, the refund amount isn't important in a discussion about tax systems anyway, the amount of your tax liability is what matters.

As for how many are benefiting from the new law, the estimates I've heard are 80 percent of taxpayers would see a benefit and 5 percent would see an increase in their tax liability. Doesn't surprise me that people you're talking to are worse off, they probably all live in CA and have a large state and local tax deduction that got cut.
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Old 03-04-2019, 07:39 AM
 
Location: Censorshipville...
2,672 posts, read 6,233,791 times
Reputation: 1543
Quote:
Originally Posted by Energystream View Post
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?
Turbo Tax does it for you automatically and I double checked they are using AGI and those are the numbers I posted.
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Old 03-04-2019, 07:55 AM
 
4,661 posts, read 1,148,296 times
Reputation: 3613
Quote:
Originally Posted by Energystream View Post
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?

You should be using gross income for that calculation. If you use AGI, you are double counting and it is not accurate.
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Old 03-04-2019, 08:40 AM
 
70,661 posts, read 71,108,484 times
Reputation: 48270
Quote:
Originally Posted by Grlzrl View Post
You should be using gross income for that calculation. If you use AGI, you are double counting and it is not accurate.
to compare this year effective tax rate to last year i use agi .... amounts of income vary so if agi is in the same bracket you can get a clear picture based on the same standard . unless there is something special that is being eliminated from agi .
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Old 03-04-2019, 08:42 AM
 
Location: Columbia SC
8,840 posts, read 7,627,988 times
Reputation: 11947
Done and filed electronically via Turbo Tax. Refund electronically deposited 3 weeks after filing.
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Old 03-04-2019, 10:55 AM
 
Location: USA
936 posts, read 362,645 times
Reputation: 2441
Income was up by almost 11%, adjusted income, +10%, federal taxes paid were down by 5.1 percentage points. The tax rate dropped by 2.6%. I expect that 2019 will also be a pretty good year for us before the bottom drops out when I retire. lol
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Old 03-04-2019, 01:57 PM
 
4,661 posts, read 1,148,296 times
Reputation: 3613
Quote:
Originally Posted by mathjak107 View Post
to compare this year effective tax rate to last year i use agi .... amounts of income vary so if agi is in the same bracket you can get a clear picture based on the same standard . unless there is something special that is being eliminated from agi .
Turbo tax is using gross income.
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Old 03-04-2019, 02:49 PM
 
70,661 posts, read 71,108,484 times
Reputation: 48270
Quote:
Originally Posted by Grlzrl View Post
Turbo tax is using gross income.
i was curious as to how we compared to last year . i just took taxes divided by agi ...it told me all i needed to know . i paid 1% less this year as an effective rate
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Old 03-04-2019, 04:58 PM
 
1,131 posts, read 510,419 times
Reputation: 1205
Quote:
Originally Posted by Grlzrl View Post
Turbo tax is using gross income.
Quote:
Originally Posted by Grlzrl View Post
Ok, hang tight. Apparently, AGI and gross are the same thing. But there is a line for adjustments to income of which I have none. I have to figure it out.
If your Total (not gross, as TaxPhd astutely pointed out to me) and AGI are the same, you wouldn't know which # TurboTax uses for the denominator. Having a $13k IRA contribution deduction in 2018 which gets deducted from Total Income to get to AGI, I can confirm that TurboTax is using AGI when calculating what they call your effective tax rate on the Tax History Report.
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