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You should have increased your deductions if you wanted more back.
At the end of the year... You made more money.
The wife and I ended up making $11k more, and I didn't adjust my deductions. We owe roughly $4k. Generally we owe around $1500. The one bummer is we no longer can write off us working from home.
Either way, I'll never vote for a D, there just are too many other things I disagree with them on. I'll deal with the tax issues.
I ended up with a massive tax hike, as did millions of others.
If so, again, it is probably because of the new "Honesty Filter" that goes by the more commonly known moniker of "SALT deduction cap."
If you live in a state and/or town with high taxes that exceed $10k annually, your state/town was using the taxpayers across the nation to make you think high tax rates and spending largess are just no big deal because it really isn't that much tax, right? WRONG. Your cost of living is higher than you thought, but was subsidized by the rest of the country via the deduction.
The wonderfully ironic point about that particular bit of the law is that it really only hits wealthy residents of wealthy areas with high costs of living relative to others. Liberals define such people as "The Rich." So Trump's "tax cut for the rich" apparently only hurts "the rich."
Quote:
Originally Posted by NomadicDrifter
Or states with high taxes. It's easy to see how a middle class family, who owns 1 home, and earns a middle class income in California, will easily hit that SALT limit.
Because CA is absurdly high tax and, based on decades of cronyism, has an absurd cost of living that the rest of the country is no longer subsidizing. Same for Long Island, Manhattan, SanFran, Chicago, etc. Ridiculous property values PLUS high taxes. The disinfenctant truth was always going to sting.
If so, again, it is probably because of the new "Honesty Filter" that goes by the more commonly known moniker of "SALT deduction cap."
If you live in a state and/or town with high taxes that exceed $10k annually, your state/town was using the taxpayers across the nation to make you think high tax rates and spending largess are just no big deal because it really isn't that much tax, right? WRONG. Your cost of living is higher than you thought, but was subsidized by the rest of the country via the deduction.
The wonderfully ironic point about that particular bit of the law is that it really only hits wealthy residents of wealthy areas with high costs of living relative to others. Liberals define such people as "The Rich." So Trump's "tax cut for the rich" apparently only hurts "the rich."
Because CA is absurdly high tax and, based on decades of cronyism, has an absurd cost of living that the rest of the country is no longer subsidizing. Same for Long Island, Manhattan, SanFran, Chicago, etc. Ridiculous property values PLUS high taxes. The disinfenctant truth was always going to sting.
The SALT limit is so low, it's not just affecting the rich, it's affecting the middle class. Also I believe Finn Jarber lives in Florida - no state income tax, low property values (albeit high tax percentage), so not sure how he's hitting SALT or why his taxes increased. My guess is he's just making it up because he hates Trump, and cannot think for himself.
I paid a lot less than last year and made more. Do all you people hit by the SALT limit live in big cities?
If he's like most Democrats, he is getting a tax reduction but he thinks he is paying more....85% of Democrats are seeing a reduction but only 14% think they are...the gulf between reality and Dim beliefs is incredibly vast.
Just finished my tax return. Nothing really changed. Take here, give there -- no big changes.
We are in the upper middle class bracket in a low property tax state -- at the tale end of our mortgage........Our standard deduction for the year was definitely lower than what we could claim last year -- even with a 'child tax credit' for our last dependent.
The 'tax cut' -- not significant to change our financial position.
The SALT limit is so low, it's not just affecting the rich, it's affecting the middle class. Also I believe Finn Jarber lives in Florida - no state income tax, low property values (albeit high tax percentage), so not sure how he's hitting SALT or why his taxes increased. My guess is he's just making it up because he hates Trump, and cannot think for himself.
$10,000 isn't low. How many middle class Americans are paying more than $5,000 in real estate tax plus more than $5,000 in state income tax, for example?
Median US home price is $200,000. It would take a real estate tax of 2.5% to hit the $5,000 mark on that, but the national average real estate tax rate is less than half of that at only 1.19%. That leaves state income tax. Few states have state income rates above 6% on the middle class. It's hard for anyone in the middle class to hit over the $10,000 SALT cap limit unless they live in a highly-taxed blue state.
If so, again, it is probably because of the new "Honesty Filter" that goes by the more commonly known moniker of "SALT deduction cap."
If you live in a state and/or town with high taxes that exceed $10k annually, your state/town was using the taxpayers across the nation to make you think high tax rates and spending largess are just no big deal because it really isn't that much tax, right? WRONG. Your cost of living is higher than you thought, but was subsidized by the rest of the country via the deduction.
The wonderfully ironic point about that particular bit of the law is that it really only hits wealthy residents of wealthy areas with high costs of living relative to others. Liberals define such people as "The Rich." So Trump's "tax cut for the rich" apparently only hurts "the rich."
Because CA is absurdly high tax and, based on decades of cronyism, has an absurd cost of living that the rest of the country is no longer subsidizing. Same for Long Island, Manhattan, SanFran, Chicago, etc. Ridiculous property values PLUS high taxes. The disinfenctant truth was always going to sting.
Nah, we live in Florida, and are not 'rich' as you would define it (anyone who pays more than $10K in SALT). Lot of people here who are middle class pay more than $10K in SALT, but not us. We were penalized in other ways like the elimination dependent exemption, so anyone who cares for elderly relatives wont be able to claim them anymore. Charitable contributions, like church tithes, are not deductible any more (unless they exceed $12 000).
Those kinds of exemptions and deductions were in place to encourage people to care for their aging relatives, and to donate for good causes, while the new laws tends to do the opposite. It's actually hard to believe conservatives supported removing them, since they worked hard to put them in place in the past.
The solution for retirees in Florida who pay more than $10K in SALT is simple, - reduce your standard of living by moving to a smaller house in a less desirable neighborhood. There are always ways to cope, although it might mean changing your plan for retirement.
$10,000 isn't low. How many middle class Americans are paying more than $5,000 in real estate tax plus more than $5,000 in state income tax, for example?
Median US home price is $200,000. It would take a real estate tax of 2.5% to hit the $5,000 mark on that, but the national average real estate tax rate is less than half of that at only 1.19%. That leaves state income tax. Few states have state income rates above 6% on the middle class. It's hard for anyone in the middle class to hit over the $10,000 SALT cap limit unless they live in a highly-taxed blue state.
Which is the point, in California, Hawaii, New Jersey, Massachusetts (etc) middle class people are being hit by this SALT limit. So it's low. You're punishing residents in certain states over others.
Nah, we live in Florida, and are not 'rich' as you would define it (anyone who payed more than $10K in SALT). Lot of people here who are not wealthy pay more than $10K in SALT, but not us. We were penalized in other ways like the elimination dependent exemption, so anyone who cares for elderly relatives wont be able to claim them anymore. Charitable contributions, like church tithes, are not deductible any more (unless they exceed $12 000).
Those kinds of exemptions and deductions were in place to encourage people to care for their aging relatives, and to donate for good causes, while the new laws tends to do the opposite. It's actually hard to believe conservatives supported removing them, since they worked hard to put them in place in the past.
They're still deductible, just that you can claim up to $12,000 without showing receipts. That's good news for you, you're getting a $12,000 deduction for free. I just looked it up (https://arstechnica.com/information-...16/?comments=1), prior to 2018 it was at $6,350, so this was a tax deduction for you, you're just not smart enough to realize it.
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