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for god's sake I wish the MSM would report with an unbiased slant for once.
The MSM is entertainment. They manufacture a product. They have a target market. They conduct extensive market research evaluating their target market's reaction to the product. They manufacture more of what their target market likes, and less of what they don't like.
Key points:
But I do know this: my tax liability in a given year is a fixed amount contingent on my income, my exemptions/deductions, and the current tax rate. It’s going to be the same amount when it’s tallied whether I over-withhold and get a refund or under-withhold and write the IRS a check. As my accountant very succinctly put it: “Your tax is your tax.”
I went back and compared 2017 to 2018. My overall tax liability in 2018 was about 6% less than it was in 2017. This, despite the fact that my income/earnings increased over 20%. Not only that, but, as a percentage of Adjusted Gross Income, it was also lower. For 2017, my tax was 14% of my AGI; for 2018, it was 11%. (Yes, I’ve checked my math. Twice.) So, yes, my tax is my tax and my tax in 2018 was less than it was in 2017, even though I “owe.”
We just finished our taxes today.. we came out about the same .... we are getting back 4K from the fed and 3200 from the state .....that is pretty much our normal estimated we pay so it is easier to say keep it .
This year we tax loss harvested a lot of stuff so we fell short of what we typically pay
Key points:
But I do know this: my tax liability in a given year is a fixed amount contingent on my income, my exemptions/deductions, and the current tax rate. It’s going to be the same amount when it’s tallied whether I over-withhold and get a refund or under-withhold and write the IRS a check. As my accountant very succinctly put it: “Your tax is your tax.”
I went back and compared 2017 to 2018. My overall tax liability in 2018 was about 6% less than it was in 2017. This, despite the fact that my income/earnings increased over 20%. Not only that, but, as a percentage of Adjusted Gross Income, it was also lower. For 2017, my tax was 14% of my AGI; for 2018, it was 11%. (Yes, I’ve checked my math. Twice.) So, yes, my tax is my tax and my tax in 2018 was less than it was in 2017, even though I “owe.”
All that is great but you did the wrong calculation. You should take your 2017 tax/2017 GROSS income and the same calculation in 2018. Then compare the two. That is your EFFECTIVE tax rate. That's how you can compare apples to apples.
All that is great but you did the wrong calculation. You should take your 2017 tax/2017 GROSS income and the same calculation in 2018. Then compare the two. That is your EFFECTIVE tax rate. That's how you can compare apples to apples.
Calculating as a % of AGI for both 2017 and 2018 is apples to apples.
No it's not. You should use gross income to calculate your effective tax rate. Google it.
Not in my situation - I use AGI as well. I'm self-employed and my business deductions can vary wildly from year to year. 2018 had a lot of business deductions, 2017 did not. AGI takes into account those business deductions, while gross income would not....
There is only ONE number you should be looking at to see if you are better off in 2018 under the new tax plan. Effective rate. Look at your effective rate compared to the prior year. Not marginal rate, not total taxes, not refund amount, not amount owed. EFFECTIVE rate. How to calculate it: Total taxes paid/Gross income. If you haven't done that, don't come back here griping about 'my taxes went up'. Because if you haven't done that, you don't know.
Well, I HAVE done that and I AM gonna gripe because my ETR went UP ~1%. Tubotax confirms that in 2017-2018 summaries.
Make no mistake. Taxes DID GO UP for a sizeable amount of people in this country.
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