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To the issue of Itemized deductions for seniors. We are seniors and and I cannot conceive of going over the generous Standard Deduction of $15,100.
You are forgetting the impact of medical bills for assisted or nursing home care. The deductions that are proposed to be kept are, indeed, not as useful to seniors. The ones that help seniors are the ones they still encounter - the state, local, property,etc. taxes and medical expenses. When one withdraws from a deferred retirement account for medical expenses, one can create taxes where previously there was little to no tax. Also, if the states need revenue because of reduced subsidies from the federal government, the taxes at the state and local level will probably be more regressive, affecting all including the poorest seniors.
You are forgetting the impact of medical bills for assisted or nursing home care. The deductions that are proposed to be kept are, indeed, not as useful to seniors. The ones that help seniors are the ones they still encounter - the state, local, property,etc. taxes and medical expenses. When one withdraws from a deferred retirement account for medical expenses, one can create taxes where previously there was little to no tax. Also, if the states need revenue because of reduced subsidies from the federal government, the taxes at the state and local level will probably be more regressive, affecting all including the poorest seniors.
THe value of medical expenses as itemized deductions may be quite more limited than one might first think:
AGI threshold increase. Starting in 2013, the amount of allowable medical expenses you must exceed before you can claim a deduction is 10 percent of your adjusted gross income. The threshold was 7.5 percent of AGI in prior years.
Temporary exception for age 65. The AGI threshold is still 7.5 percent of your AGI if you or your spouse is age 65 or older. This exception will apply through Dec. 31, 2016.
So, before even a penny goes towards your itemized deductions, that $15,100 border wall...you need a walloping large medical bill. We dropped $2500 on teeth this year and $1000 on bladder cancer: no way we will see a penny benefit.
So, before even a penny goes towards your itemized deductions, that $15,100 border wall...you need a walloping large medical bill. We dropped $2500 on teeth this year and $1000 on bladder cancer: no way we will see a penny benefit.
My example was not for routine medical but for long term care of older people with chronic illnesses. For such individuals, the amount of the bill eligible for deduction under current rules could be substantial. I wasn't talking about a dental bill.
I haven't plowed through the entire thread ... but not sure it's clear whether the current proposal retains ANY stepped-up basis for heirs to estates? Some of the earlier proposals removed the step up in basis when assets are transferred.
Eliminate the estate tax on estates above $11 million but pay for it with increased taxes on the middle class?
Congress will NEVER eliminate stepped up asset basis for heirs...NEVER. But they MAY get rid of all estate tax.
Of course, if they eliminate the federal estate tax on the few people rich enough to be called on to pay, the issue of inherited basis becomes moot. because wealth can be passed untaxed from generation to generation. No tax = no need for basis.
To the issue of Itemized deductions for seniors. We are seniors and and I cannot conceive of going over the generous Standard Deduction of $15,100.
Taxes in our Mitchell-Lama are extremely low and partially rebatable.
By the time a couple reach 65, one might expect mortgages and shool debt to be paid off.
But even with a free standing home, $15 grand is a LOT of property tax.
No, the effect of borrowing trillions (like with an immense unpaid tax cut) is on the inflation that will be triggered that could wipe out many seniors' savings.
Well we are in our early sixties and just our medical premiums will be over 19,000
Yes if you aren't earning enough to live on for God's sake. Many of the people not paying federal income tax are getting EITC, would it make you feel better to have them pay income tax and then increase the EITC by the same amount that they paid out in taxes?
If you want to talk about a fair share, let's look at some of the profitable companies that pay zero income tax? There are 27 S&P 500 companies that did just that But some guy working at a warehouse making 30k supporting a wife and two kids should pay their fare share
Last edited by 2sleepy; 10-08-2017 at 10:17 AM..
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