U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Closed Thread Start New Thread
 
Old 05-28-2020, 03:29 PM
 
Location: Shawnee-on-Delaware, PA
4,399 posts, read 4,035,143 times
Reputation: 8319

Advertisements

Most people who claim they "got screwed" complained about it last year. Anyone complaining this year really missed the boat.

I lost a deduction when my oldest graduated college last year, but I had increased my 401k contribution (using the reduced withholding) so it kind of balanced out. Next year I'll lose another college kid and I've already increased my withholding.

 
Old 05-28-2020, 03:39 PM
 
Location: Dude...., I'm right here
1,360 posts, read 864,304 times
Reputation: 920
A better comparison would have been your effective tax rate. This is how to tell if your taxes went up.

Quote:
Originally Posted by NJDevil View Post
I don't hear other people complaining, and when I googled it I couldn't find any information, but I can't understand why our federal tax return changed so much this year. Our income has not changed, and we do not itemize.
2 years ago we got approx $400 refund. Last year was around $800 refund. Last year my husband heard on MSNBC that Trump had changed the tax chart, and every year since he took office the amount of withholding changed. So at that point we both started having additional money withheld from our paychecks. Even doing that, we still owed approx $400 this year (for 2019 - you know what I mean). If we hadn't done that, we might have owed $800!
I don't understand taxes, and this is not meant to be a rant against Trump, I just want to know what happened, and it's very frustrating I can't get any info. Even people who do taxes for a living can't answer me.
 
Old 05-28-2020, 03:42 PM
 
1,982 posts, read 503,478 times
Reputation: 3191
Quote:
Originally Posted by ChessieMom View Post
I don't either. I have NEVER understood it, frankly.
Perhaps because the entire tax-prep process, as seen by the average individual, focuses on that. All that goes before is just complicated mumbo-jumbo, spells to make the magic pot o'gold appear.

I think it's far from accidental.
 
Old 05-28-2020, 04:26 PM
 
8,287 posts, read 4,648,955 times
Reputation: 17383
Quote:
Originally Posted by NJDevil View Post
I don't hear other people complaining, and when I googled it I couldn't find any information, but I can't understand why our federal tax return changed so much this year. Our income has not changed, and we do not itemize.
2 years ago we got approx $400 refund. Last year was around $800 refund. Last year my husband heard on MSNBC that Trump had changed the tax chart, and every year since he took office the amount of withholding changed. So at that point we both started having additional money withheld from our paychecks. Even doing that, we still owed approx $400 this year (for 2019 - you know what I mean). If we hadn't done that, we might have owed $800!
I don't understand taxes, and this is not meant to be a rant against Trump, I just want to know what happened, and it's very frustrating I can't get any info. Even people who do taxes for a living can't answer me.
I'll owe this year, when I usually don't. Although I haven't filed yet. But it's partly because I did a conversion from IRA to my roth.

Refunds don't matter. What matters is the % of adjusted income you end up paying. All a refund means is that the incorrect amount was withheld. In a perfect world, you'll get neither a refund nor owe.
 
Old 05-28-2020, 05:48 PM
 
Location: Boston
12,976 posts, read 3,737,209 times
Reputation: 9229
Quote:
Originally Posted by turf3 View Post
I call BS on that. How many tax preparers have you shown your last year's return, and this year's, to?


Any competent tax preparer can answer why your refund/payment amount is different this year than last.
exactly, thread is BS
 
Old 05-28-2020, 06:19 PM
 
Location: Honolulu, HI
7,138 posts, read 2,361,067 times
Reputation: 9885
They don’t teach you how to file taxes in school, so yes, Uncle Sam is hoping you get screwed.
 
Old 05-29-2020, 12:14 AM
 
1,785 posts, read 1,155,915 times
Reputation: 3544
Quote:
Originally Posted by 1ondoner View Post
A better comparison would have been your effective tax rate. This is how to tell if your taxes went up.
Exactly this.
 
Old 05-29-2020, 03:58 AM
 
80,182 posts, read 78,518,791 times
Reputation: 56696
we actually had an effective tax rate 1% less when the new tax laws went in to effect and we live in the high tax state of not only ny but nyc too
 
Old 05-29-2020, 06:20 AM
 
Location: Guadalajara, MX
7,492 posts, read 3,644,311 times
Reputation: 14295
Quote:
Originally Posted by RationalExpectations View Post
Moreover, I just don't understand why some people mistakenly focus on refund/amount owed rather than total tax obligation
I suspect you'd find a significant overlap with the people who worry that a raise will make cause them to take home less money since they'll fall into a higher tax bracket.
 
Old 05-29-2020, 09:36 AM
 
29,156 posts, read 35,565,299 times
Reputation: 38490
Quote:
Originally Posted by Therblig View Post
Perhaps because the entire tax-prep process, as seen by the average individual, focuses on that. All that goes before is just complicated mumbo-jumbo, spells to make the magic pot o'gold appear.

I think it's far from accidental.
I disagree. I have never felt that the tax preparation process has focused on refunds. I have always done my own, and there are way too many factors involved for anyone to reduce it down to such nonsense as a "pot o'gold". Perhaps you saying that the "marketing" of tax return services promotes that view?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top