The 2017 Tax Cut - Jobs Act (refund, complaint, deduction, withholding)
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So far, Twitter is blowing up with the results of working class tax returns. They're not good! I wonder how the average CD'r is doing? Myself, I'll most likely benefit (businesses, higher AMT exclusions, etc...).
I had a big pile of 1099 income with self employment tax. I knew my tax liability to the penny as I was earning the money and set it aside for quarterly estimated tax payments. I kind of roll my eyes at people who get to tax filing season without a clue what their tax liability is going to be. That should have all been something you worked out a year ago so you're withholding the correct amount.
Yes, the media is constantly harping the "withholding" line. However, Twitter users are suggesting the 'untalked' about 'other.' The deletion of decades long "working class" tax credits.
Their biggest complaint seems to follow: If my taxes are being lowered (as claimed) and the reduction of withholding rates (doesn't require legislation) - (enacted quickly to impact the 2018 election) are in line with the tax reduction, then why do they sometimes owe thousands more in taxes?
Remember when the Speaker (at the time) bragged how some teacher could now afford a CostCo membership because of her tax savings?? Some low amount of change like $20/month(??). That would be a tax 'savings' of $240/yr. So how does that teacher (who now gets no credit for buying teaching supplies) now get a tax 'bill' of $1500?? That isn't a 'withholding' issue (keep in mind, the working class was supposed to make 'more' so the reduction in withholding was essentially their tax savings).
Yes, the media is constantly harping the "withholding" line. However, Twitter users are suggesting the 'untalked' about 'other.' The deletion of decades long "working class" tax credits.
Their biggest complaint seems to follow: If my taxes are being lowered (as claimed) and the reduction of withholding rates (doesn't require legislation) - (enacted quickly to impact the 2018 election) are in line with the tax reduction, then why do they sometimes owe thousands more in taxes?
Remember when the Speaker (at the time) bragged how some teacher could now afford a CostCo membership because of her tax savings?? Some low amount of change like $20/month(??). That would be a tax 'savings' of $240/yr. So how does that teacher (who now gets no credit for buying teaching supplies) now get a tax 'bill' of $1500?? That isn't a 'withholding' issue (keep in mind, the working class was supposed to make 'more' so the reduction in withholding was essentially their tax savings).
Any comments or insights? #GOPTaxSCAMStories
This is kind of nonsense. Let's say that "working class" has a $50K AGI cutoff. $25/hour. Filing single and taking the standard deduction, that's $4,375 in Federal income taxes. Your effective tax rate is less than 9%. Married, an AGI of $100K has the same numbers. You're still in the 12% bracket. The working class hardly pays any Federal income tax at all.
So if your withholdings went "down" $20 per month for a total of $240 for the year, then wouldn't that equal the "tax cut?"
Yet, a lot of people are seeing a "tax INCREASE" because they're paying MORE (taxes) than last year.
Their argument is that #1: Their pay didn't change. #2: Their withholding dropped $20 (SOLD AS THEIR NEW TAX CUT) then....... their return should be the same as last year. #3 Its NOT! Its FAR LESS. So they're saying, yes their tax was cut, but it was their tax "REFUND" that was cut. And that "CUT" in refund FAR EXCEEDED what they 'SAVED' in withholding cuts.
So if your withholdings went "down" $20 per month for a total of $240 for the year, then wouldn't that equal the "tax cut?"
Yet, a lot of people are seeing a "tax INCREASE" because they're paying MORE (taxes) than last year.
Their argument is that #1: Their pay didn't change. #2: Their withholding dropped $20 (SOLD AS THEIR NEW TAX CUT) then....... their return should be the same as last year. #3 Its NOT! Its FAR LESS. So they're saying, yes their tax was cut, but it was their tax "REFUND" that was cut. And that "CUT" in refund FAR EXCEEDED what they 'SAVED' in withholding cuts.
If it was sold as a “ tax cut” I guess I didn’t read the brochure. I read that I needed to check my withholdings to make sure I was having enough taxes withheld. My taxes did not increase. From 2017 to 2018, my income increased 4K, and my federal tax liability decreased by $500.
And no...if my withholding goes down...that certainly does not mean there has been a tax cut. It means the tax tables have been revised. Jeez. How do people not understand this?
So if your withholdings went "down" $20 per month for a total of $240 for the year, then wouldn't that equal the "tax cut?"
Yet, a lot of people are seeing a "tax INCREASE" because they're paying MORE (taxes) than last year.
Their argument is that #1: Their pay didn't change. #2: Their withholding dropped $20 (SOLD AS THEIR NEW TAX CUT) then....... their return should be the same as last year. #3 Its NOT! Its FAR LESS. So they're saying, yes their tax was cut, but it was their tax "REFUND" that was cut. And that "CUT" in refund FAR EXCEEDED what they 'SAVED' in withholding cuts.
The data doesn't support your view. You're pretty much just making numbers up out of thin air.
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