How Will Tax Reform Affect My Refund Next Year?

[Primemuscle]

The new tax law is the largest piece of tax reform legislation in 30 years and was signed into law on December 22, 2017. For most people, these tax changes impact tax year 2018 (the taxes you file in 2019) and not tax year 2017 returns. Overall, the changes associated with the new tax law may lower taxes for individuals and small businesses.

Some of the highlights for taxpayers include:

Lower individual tax rates
Increased standard deduction
Increased child tax credit
Elimination of dependent and personal exemptions
Elimination of some itemized deductions
$10,000 cap on the deduction for state income taxes, sales, and local taxes, and property taxes combined
20% deduction for “pass-through” entities (sole proprietorship, partnership, S corp.)
Increased expense limits for capital assets

Claims Itemized Deductions
If you claim itemized deductions you may see fewer tax deductions that lower your tax liability especially if you live in a state with high property taxes since the new law limits the amount of state and local property, income, and sales taxes that can be deducted to $10,000. In the past, these taxes have generally been fully tax deductible.

The law also caps the amount of mortgage indebtedness on new home purchases on which interest can be deducted at $750,000 down from $1,000,000 in current law.

If you itemize you will also see the elimination of some miscellaneous itemized deductions like unreimbursed employee expenses under the new law.

https://blog.turbotax.intuit.com/tax-reform/how-will-tax-reform-affect-my-refund-next-year-33055/

Save now, pay later: You may owe more taxes in 2019
The IRS  withholding tables under the Tax Cuts and Jobs Act.
Withholding too little in 2018 may put you on the hook for taxes in 2019.

Enjoy that bigger paycheck in 2018, courtesy of the tax overhaul. You may end up owing Uncle Sam more money in 2019.

Check out the annual 2018 tax table.

[JustPlaneJane]

Most people here would rather see you dead before April 2019.

[oldtimer1]

 From Turbo Tax: Single taxpayers will see their standard deductions jump from $6,350 for 2017 taxes to $12,000 for 2018 taxes (the ones you file in 2019). Married couples filing jointly will see an increase from $12,700 to $24,000

[SOMEPARTS]

You can't ask a tax question without posting all the pertinent info that would impact your exposure to the taxation....that is, if you actually want a good answer to your question. Accountants are cheap to interview in the off season.

Those that understand the tax law and work and invest to utilize it end up being rich. Those that don't end up paying a lifetime of high taxes on wages and keep waiting for the benefits of that tax-deferred carrot on a stick called a 401k.

[Coach is Back!]

The new tax law is the largest piece of tax reform legislation in 30 years and was signed into law on December 22, 2017. For most people, these tax changes impact tax year 2018 (the taxes you file in 2019) and not tax year 2017 returns. Overall, the changes associated with the new tax law may lower taxes for individuals and small businesses.

Some of the highlights for taxpayers include:

Lower individual tax rates
Increased standard deduction
Increased child tax credit
Elimination of dependent and personal exemptions
Elimination of some itemized deductions
$10,000 cap on the deduction for state income taxes, sales, and local taxes, and property taxes combined
20% deduction for “pass-through” entities (sole proprietorship, partnership, S corp.)
Increased expense limits for capital assets

Claims Itemized Deductions
If you claim itemized deductions you may see fewer tax deductions that lower your tax liability especially if you live in a state with high property taxes since the new law limits the amount of state and local property, income, and sales taxes that can be deducted to $10,000. In the past, these taxes have generally been fully tax deductible.

The law also caps the amount of mortgage indebtedness on new home purchases on which interest can be deducted at $750,000 down from $1,000,000 in current law.

If you itemize you will also see the elimination of some miscellaneous itemized deductions like unreimbursed employee expenses under the new law.

https://blog.turbotax.intuit.com/tax-reform/how-will-tax-reform-affect-my-refund-next-year-33055/

Save now, pay later: You may owe more taxes in 2019
The IRS  withholding tables under the Tax Cuts and Jobs Act.
Withholding too little in 2018 may put you on the hook for taxes in 2019.

Enjoy that bigger paycheck in 2018, courtesy of the tax overhaul. You may end up owing Uncle Sam more money in 2019.

Check out the annual 2018 tax table.

Not enough info given on YOUR part but whatever, just keep in mind you’d be fucked if you had a liberal tax plan....considering they’d probably use “common core” math.

[The Scott]

OP just needs to do what he has apparently always desired and bend over and take it up his tax free dirtstar so that his fellow Portland shitizens can crap all over his lawn. 

Think of it as "free fertilizer".    Keep tastin' that rainblow, kiddo.

[loco]

I'm not sure about US tax law, but I know for a fact that when it comes to investing, Prime has proved to be completely clueless.  He has a hardened criminal for a "financial advisor" raping him on a daily basis, but I'm sure Prime loves that.  I don't know.  I'm not judging.

Prime is lucky that he or his wife, or both, were high earners in their youth.  That's my only explanation for why he's wealthy today, according to him anyway.

A high salary, combined with a high savings rate and a little bit of luck will cover a multitude of mistakes when it comes to saving for retirement.

The rest of us have to educate ourselves about retirement saving/investing and avoid the so called financial "experts", and be frugal and disciplined.  That includes protecting our savings and investments from inflation, high fees, and yes...protecting them from excessive taxation.

[anvil]

I'm really disappointed in AIDS... it just isn't getting the job done anymore.

[Primemuscle]

Not enough info given on YOUR part but whatever, just keep in mind you’d be fucked if you had a liberal tax plan....considering they’d probably use “common core” math.

I've never thought of my income taxes as being liberal or conservative. There has never been an issue with my taxes, maybe because to try to stay informed about and thus prepared for tax time. Whether "common core" or "number sense" math is used has nothing to do with conservatism or liberalism. Whatever is taught in private school is okay with Betsy DeVos.   

[funk51]

here's a good investment for you. i hear it will be the hottest item for 2020.

[JAGO]

[Primemuscle]

I'm not sure about US tax law, but I know for a fact that when it comes to investing, Prime has proved to be completely clueless.  He has a hardened criminal for a "financial advisor" raping him on a daily basis, but I'm sure Prime loves that.  I don't know.  I'm not judging.

Prime is lucky that he or his wife, or both, were high earners in their youth.  That's my only explanation for why he's wealthy today, according to him anyway.

A high salary, combined with a high savings rate and a little bit of luck will cover a multitude of mistakes when it comes to saving for retirement.

The rest of us have to educate ourselves about retirement saving/investing and avoid the so called financial "experts", and be frugal and disciplined.  That includes protecting our savings and investments from inflation, high fees, and yes...protecting them from excessive taxation.

Not judging? Seems like you are. The rest of your post is mostly on topic....good job. The last paragraph is sound advice, most of which has been beneficial to me.  

Trust me, my wife and I weren't high earners, particularly early on. We both started thinking more seriously about our financial futures in our early 40's. She and I were lucky to be comfortable in retirement, but hardly wealthy. Sorry if I gave anyone that impression. Like many seniors, the bulk of my income is from annuities and social security. In other words a fixed income. Aside from this, I made good investments and a lot of sweat equity in real estate , which is why I live in a nice neighborhood today.

[The Scott]

From what I've read, Walt Disney was a Republican and hated communist libtardism.

[Straw Man]

Not enough info given on YOUR part but whatever, just keep in mind you’d be fucked if you had a liberal tax plan....considering they’d probably use “common core” math.

once again, you need to be reminded that shit that you imagine doesn't actually matter

there is no "liberal" plan.

The only valid comparison is the tax brackets and rules that were in effect in 2017 as compared to now

Many people (especially those with hefty property tax, state income tax and mortgage interest deductions) will wind up paying more

Any savings that individuals will receive are scheduled to be phased out in ten years

[oldtimer1]

once again, you need to be reminded that shit that you imagine doesn't actually matter

there is no "liberal" plan.

The only valid comparison is the tax brackets and rules that were in effect in 2017 as compared to now

Many people (especially those with hefty property tax, state income tax and mortgage interest deductions) will wind up paying more

Any savings that individuals will receive are scheduled to be phased out in ten years

Really? You're worried that in 10 years the savings will be phased out and return to Obama taxation so it's a negative?  Trump said a month ago the next plan was to make it permanent with additional cuts. Not a chance now with Democratic House. No, tax saving plan will help everyone. Trump's plan helps the majority. Yes, people living in 400K plus houses where their real estate taxes are over 10K won't be able to deduct additionally past the 10K.  The majority will be helped.

[loco]

Not judging? Seems like you are. The rest of your post is mostly on topic....good job. The last paragraph is sound advice, most of which has been beneficial to me.  

Trust me, my wife and I weren't high earners, particularly early on. We both started thinking more seriously about our financial futures in our early 40's. She and I were lucky to be comfortable in retirement, but hardly wealthy. Sorry if I gave anyone that impression. Like many seniors, the bulk of my income is from annuities and social security. In other words a fixed income. Aside from this, I made good investments and a lot of sweat equity in real estate , which is why I live in a nice neighborhood today.

Yes, I'm judging you, but only about the part where you seem clueless about investing, judging by your posts on the subject.

I am however not judging you at all if you enjoy getting raped daily by the hardened criminal you call your "financial advisor."  That's your business, not mine.

[Straw Man]

Really? You're worried that in 10 years the savings will be phased out and return to Obama taxation so it's a negative?  Trump said a month ago the next plan was to make it permanent with additional cuts. Not a chance now with Democratic House. No, tax saving plan will help everyone. Trump's plan helps the majority. Yes, people living in 400K plus houses where their real estate taxes are over 10K won't be able to deduct additionally past the 10K.  The majority will be helped.

The majority will get UP TO a 2% tax cut.  Is that what you're so excited about because while you're distracted by that the super rich and corporate American get the vast majority of the actual benefits

When you mention "Obama taxation" Are you referring to the Obama tax cuts of 2009 when he extended the Bush tax cuts through 2012 and unemployment benefits through 2011,  cut payroll taxes by 2 percent, adding $120 million to workers' spendable income and  extended a college tuition tax credit. There were also $55 billion in industry-specific tax cuts.

To pay for part of these costs, Obama’s deal revived the inheritance tax that had lapsed for a year. It applied a 35 percent tax rate to estates worth over $5 million for individuals or over $10 million for families.

Or maybe you're referring to 2013 when Obama approved the permanent extension of the Bush tax cuts for those below a certain income level. This was part of the fiscal cliff package?

Which one of those were you referring to.

BTW - I'm not "worried' that Trump meager tax cuts (no more than 2% for 90% of tax payers) will be phased out.
I'm just stating a fact.

Are you really that excited over a 2% tax while the super rich and corporations make out like bandits (which will be financed by the entire country as we borrower more and more money to make up for the deficits in tax revenue)

https://www.thebalance.com/obama-tax-cuts-3306330

[SF1900]

This will not affect getbiggers, as they are all in the super wealthy category.


Please refer to my classification scheme regarding the way getbiggers classify income.

SF1900's classification scheme to describe socioeconomic status based on income per year. Data was collected from Getbig.com

Source:

1900, SF (2015). An alternative classification scheme to describe socioeconomic status. Journal of Getbig.com, 14, 150-190. doi: schmoe

>$100,000 - homeless

$101,000 - $450,000 = poor

$451,000 - $750,000 = low middle class

$751,000 - $1,000,000 - middle class

$1,100,000 - $5,000,000 = upper middle class

$5,100,000 - $50,000,000 = rich

$51,000,000+ = super wealthy

[deadz]

The new tax law is the largest piece of tax reform legislation in 30 years and was signed into law on December 22, 2017. For most people, these tax changes impact tax year 2018 (the taxes you file in 2019) and not tax year 2017 returns. Overall, the changes associated with the new tax law may lower taxes for individuals and small businesses.

Some of the highlights for taxpayers include:

Lower individual tax rates
Increased standard deduction
Increased child tax credit
Elimination of dependent and personal exemptions
Elimination of some itemized deductions
$10,000 cap on the deduction for state income taxes, sales, and local taxes, and property taxes combined
20% deduction for “pass-through” entities (sole proprietorship, partnership, S corp.)
Increased expense limits for capital assets

Claims Itemized Deductions
If you claim itemized deductions you may see fewer tax deductions that lower your tax liability especially if you live in a state with high property taxes since the new law limits the amount of state and local property, income, and sales taxes that can be deducted to $10,000. In the past, these taxes have generally been fully tax deductible.

The law also caps the amount of mortgage indebtedness on new home purchases on which interest can be deducted at $750,000 down from $1,000,000 in current law.

If you itemize you will also see the elimination of some miscellaneous itemized deductions like unreimbursed employee expenses under the new law.

https://blog.turbotax.intuit.com/tax-reform/how-will-tax-reform-affect-my-refund-next-year-33055/

Save now, pay later: You may owe more taxes in 2019
The IRS  withholding tables under the Tax Cuts and Jobs Act.
Withholding too little in 2018 may put you on the hook for taxes in 2019.

Enjoy that bigger paycheck in 2018, courtesy of the tax overhaul. You may end up owing Uncle Sam more money in 2019.

Check out the annual 2018 tax table.

Couldn’t care less about your old man fixed income life.

[Primemuscle]

once again, you need to be reminded that shit that you imagine doesn't actually matter

there is no "liberal" plan.

The only valid comparison is the tax brackets and rules that were in effect in 2017 as compared to now

Many people (especially those with hefty property tax, state income tax and mortgage interest deductions) will wind up paying more

Any savings that individuals will receive are scheduled to be phased out in ten years

Honestly, you are wasting your time explaining this to Coach. He's a former self employed business man. You'd think he'd know a little about federal income taxes. Obviously he doesn't and does not want to.

[Primemuscle]

This will not affect getbiggers, as they are all in the super wealthy category.


Please refer to my classification scheme regarding the way getbiggers classify income.

SF1900's classification scheme to describe socioeconomic status based on income per year. Data was collected from Getbig.com

Source:

1900, SF (2015). An alternative classification scheme to describe socioeconomic status. Journal of Getbig.com, 14, 150-190. doi: schmoe

>$100,000 - homeless

$101,000 - $450,000 = poor

$451,000 - $750,000 = low middle class

$751,000 - $1,000,000 - middle class

$1,100,000 - $5,000,000 = upper middle class

$5,100,000 - $50,000,000 = rich

$51,000,000+ = super wealthy

Ha, ha! Assuming the scale represents net-worth, I'm poor. If it's annual income, I am homeless.

[jude2]

From Turbo Tax: Single taxpayers will see their standard deductions jump from $6,350 for 2017 taxes to $12,000 for 2018 taxes (the ones you file in 2019). Married couples filing jointly will see an increase from $12,700 to $24,000

THis alone will help most of us big time.

[chaos]

From Turbo Tax: Single taxpayers will see their standard deductions jump from $6,350 for 2017 taxes to $12,000 for 2018 taxes (the ones you file in 2019). Married couples filing jointly will see an increase from $12,700 to $24,000

That's only 2% according to strawmans chart.

[Irongrip400]

Go to your CPA instead of getbig.

[Ron]

$10,000 cap on the deduction for state income taxes, sales, and local taxes, and property taxes combine

This is going to be the issue for many of us in California.  This $ 10,000 cap kills - especially when you own your own home and owe on it.   This is fine if you have a house that is worth $300K, but in California, houses at here, especially in LA County, average $600-700K, and the property taxes on a house alone can equal close to 10K, even more moderate middle class.