That’s only for certain people. Someone like me for example, didn’t need to make any change. I was within a couple hundred on what I expected my return to be. But that’s based on some factors I got wrong in my initial guestimate after the bill was passed and the new tax withholding in January. Part of the reason I underestimated how much overtime I would work during the year.
True, but if the average return is down 8%, that’s affecting more than just a few people.
Wonder if the extra cash in their pocket in the 12 to 26 paychecks they received is more or less than that 8%?
Ok I found it. Everything medical related and pension contribution is a pre tax deduction. So is it normal to not claim pre tax deductions? That’s what I don’t know. I paid close to 12k in Fed withholding. I’ll be getting a lot of money back either way.
Last year we got $4k/person of personal exemptions – whether we itemized or took the standard deduction. That was about 8K deducted on my return. Last year we could do 12K standard deduction, or we could itemize. I itemized.
This year we don’t get the exemptions. But we get 24K (married) standard deduction, or itemize. I itemize more than 24K, so I do that.
Itemizing is the same this year for me.
Last year’s exemption of 8K is gone this year. I paid taxes on 8K more income this year. But the rates are lower. I broke even.
yes. Pre tax deductions are subtracted from your goss federal income by your employer. It’s been that way for many years. If it’s on your paycheck as a pre tax deduction (for lack of a better word), you can’t claim it as another deduction on your taxes (the way I understand it – check with a tax professional as I’m not one and I did not stay in a holiday inn express last night).
I realize I’m paying less taxes during the year because less money is being taxed due to pre tax deductions. But if I’m using the standard deduction, what number do I use? And do I have to itemize in order to use the lower number? I’m not actually expecting you to answer, just stating what I’m confused about.
That doesn’t address the question, regarding the Trump tax “plan” that ladles more debt on your grandkids. When Obama was president, that was the prime topic for cons whining. What changed?
See Sean worry about Obama’s abuse of the grandkids:
https://www.google.com/url?sa=i&source=undefined&cd=&ved=0ahUKEwiM18j0m7DgAhUMG6wKHYVaAFMQzPwBCAM&url=https%3A%2F%2Fwww.foxnews.com%2Fopinion%2Fsean-hannity-obama-farewell-cant-hide-a-disastrous-legacy&psig=AOvVaw18tFzPiSbEdBcI8S7BbHQc&ust=1549855531796178
Your tax software, or tax for instructions, our your tax preparer will tell you what box on your w2 to use for your income. Mine was the lower of the two. I believe it’s used either way (for the standard deduction or itemizing.) The tax software asked for that number before it asked if I was taking the standard or going to itemize.
You obviously mean the average refund. However, they likely on average had more money over the year. We are not talking about the new tax law and rates, just the way they IRS calculated withholding. They are not the same thing.
I just don’t believe that most people are so stupid that they don’t know the difference between their yearly tax rate and how withholding was calculated. It bobbles the mind if they are.
By the way, at least when you can get an interest rate on the money you hold elsewhere, the best refund is the smallest refund.
No i did address it. I stated the middle class has been taxed enough. The working class paid more than its share, its time the lower class pay.
Revenues are up, not down. The deficit is up because both parties in congress got together and had a big spending party where basically both sides got everything they were hoping for out of the deal.
What was Trump to do give democrats another shut down to scream about?
The top 20% are carrying 84% of the load while almost half the country has a zero or net negative tax liability.
We have the most under taxed middle and lower classes in the developed world, time for them to start sharing the load.
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The Dems need to do what the GOP does and mislead the public as much as possible with this bill. Truth went out the window with Trump.
Here man, think of it like this… Pretend this is the ACA issue and things changed and now apparently you can afford healthcare and you never could before. YAY for you bro!
But there are now some people out there finding out that their healthcare cost are going up! Boo hoo hoo for them!
You all happy and think this was a good idea and they all mad and think this ■■■■ sucks. So who’s right this time? You or them OR the really fat cats who are making millions off these changes and laughing their asses off at all the people so happy about their crumbs even though the country’s deficits are skyrocketing and it is their kids that are going to get stuck with the bill down the road?
I think the fat cats nailed it!
Booyakasha!
Effective tax rate 2017: 15.01
Effective tax rate 2018: 14.77
Few hundred bucks in my favor.
Why is it “unfortunate” and how is it a wide swath?
From their and (generic) your comments, I’m sure the feeling is mutual.
As are all of the inner circles. Or Chicago lawyers.
You completely missed the irony.
Maybe the crybaby should apply for a job, I hear Trump is always hiring.
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Any other States like Virginia?
Under Virginia law you have to use the same filing type (standard or itemized) as on your Federal return.
We’ve itemized for years on Federal because it made since (we’re homeowners with a mortgage). This year we got lambasted on State taxes (went up $800 over last year) because now to maximize Federal return we take the married $24,000 deduction but under VA law we can’t itemize the State return.
A large chunk of the “tax cut” from the Fed’s just went to the State.
This has nothing to do with SALT, it’s the requirement to use standard or itemized on both without being able to use standard on one and itemized on the other.
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Which is a requirement imposed by your state and not Donald Trump.
