OT: Income tax changes

[ArmyTiger27]

Looks like my family will lose out on thousands of dollars in unclaimed mileage this year.

If you were previously claiming mileage to cover anything your company didn't, you're SOL.

This sucks!

 

[1Clemson]

Looks like my family will lose out on thousands of dollars in unclaimed mileage this year.

If you were previously claiming mileage to cover anything your company didn't, you're SOL.

This sucks!

There's a lot more of the reform that hurt- limits on SALT (I pay for parents home including taxes- not deductible), IPTAY is nondeductible for those receiving tix, no deduction for adult dependents, etc.

So losers under the new changes:

1. people that support elderly parents
2. people that support adult dependents
3. people that support college athletics scholarship programs
4. people that own significant property and pay taxes on it
   
5. people that have large mortgages
   
6. people that make good money and pay state taxes
7. people that are divorced and pay or receive alimony
8. people that plan on being alive when the bell tolls and the debt is due.

Other than that, its a 'great' idea.

 

[nytigerfan]

Looks like my family will lose out on thousands of dollars in unclaimed mileage this year.

If you were previously claiming mileage to cover anything your company didn't, you're SOL.

This sucks!

sorry to hear that, I think a lot of people are going unpleasantly surprised about their tax bill this year. so much winning.

 

[iceheart08]

sorry to hear that, I think a lot of people are going unpleasantly surprised about their tax bill this year. so much winning.

Lots of folks on this board are going to be devastated by AOCs suggested 70% rate on income over 10 million too.

 

[vatiger1]

There's a lot more of the reform that hurt- limits on SALT (I pay for parents home including taxes- not deductible), IPTAY is nondeductible for those receiving tix, no deduction for adult dependents, etc.

So losers under the new changes:

1. people that support elderly parents
2. people that support adult dependents
3. people that support college athletics scholarship programs
4. people that own significant property and pay taxes on it
   
5. people that have large mortgages
   
6. people that make good money and pay state taxes
7. people that are divorced and pay or receive alimony
8. people that plan on being alive when the bell tolls and the debt is due.

Other than that, its a 'great' idea.

Tax the rich to pay the poor?

Darn old people!

 

[rht7467]

As people file their 2018 returns this year, a huge number are going to be surprised that they actually have a tax increase relative to prior years.

 

[IcelandTiger]

There's a lot more of the reform that hurt- limits on SALT (I pay for parents home including taxes- not deductible), IPTAY is nondeductible for those receiving tix, no deduction for adult dependents, etc.

So losers under the new changes:

1. people that support elderly parents
2. people that support adult dependents
3. people that support college athletics scholarship programs
4. people that own significant property and pay taxes on it
   
5. people that have large mortgages
   
6. people that make good money and pay state taxes
7. people that are divorced and pay or receive alimony
8. people that plan on being alive when the bell tolls and the debt is due.

Other than that, its a 'great' idea.

The tax brackets are all lower percentages though right?

 

[tigerGUY]

Tax the rich to pay the poor?

Darn old people!

Funny how it's never fvcking enough. The Feds can't be responsible for budgeting the People's money, cutting their costs....just being responsible. That's a got damn word all in the government and half the country don't understand. R E S P O N S I B I L I T Y. Not a hard concept actually.

 

[tiger61886]

Looks like my family will lose out on thousands of dollars in unclaimed mileage this year.

If you were previously claiming mileage to cover anything your company didn't, you're SOL.

This sucks!

Explain this to me in elementary terms. I for one have claimed close to 40-50 thousand miles the last few years so my tax return was substantial. I drive a lot for work.

Wasn't this essentially done away with bc the standard deduction for a single person went $12,000 and for married $24,000? I could have written my miles off but was closer to 25-30K this year and did not add up close to the standard deduction.

 

[rht7467]

The tax brackets are all lower percentages though right?

No, some of the brackets are lower, but not all. Otherwise, they just consolidated the brackets for the sake of "simplicity." This consolidation will benefit some and hurt others.

 

[IcelandTiger]

No, some of the brackets are lower, but not all. Otherwise, they just consolidated the brackets for the sake of "simplicity." This consolidation will benefit some and hurt others.

Which ones are higher? Or are some just the same? I though they were all lower?

Edit: looks like the only one that wasn’t lowered is 35% bracket, which stayed the same

 

[midnightmzll]

There's a lot more of the reform that hurt- limits on SALT (I pay for parents home including taxes- not deductible), IPTAY is nondeductible for those receiving tix, no deduction for adult dependents, etc.

So losers under the new changes:

1. people that support elderly parents
2. people that support adult dependents
3. people that support college athletics scholarship programs
4. people that own significant property and pay taxes on it
   
5. people that have large mortgages
   
6. people that make good money and pay state taxes
7. people that are divorced and pay or receive alimony
8. people that plan on being alive when the bell tolls and the debt is due.

Other than that, its a 'great' idea.

This is the only thing I would disagree with but otherwise spot on. Going from $1MM to $750M doesn't move the needle much.

The SALT limitations is a big deal and is going to hurt a lot of folks. I'm torn on it as I like my deduction and live in a lower taxed state (VA) but I also like the idea of no longer Federally subsidizing fiscally irresponsible states in the West and NE.

 

[ChicagoTiger85]

There's a lot more of the reform that hurt- limits on SALT (I pay for parents home including taxes- not deductible), IPTAY is nondeductible for those receiving tix, no deduction for adult dependents, etc.

So losers under the new changes:

1. people that support elderly parents
2. people that support adult dependents
3. people that support college athletics scholarship programs
4. people that own significant property and pay taxes on it
   
5. people that have large mortgages
   
6. people that make good money and pay state taxes
7. people that are divorced and pay or receive alimony
8. people that plan on being alive when the bell tolls and the debt is due.

Other than that, its a 'great' idea.

Just about any change to policy that isn't all about increasing benefits is going to "hurt" somebody, because something's being taken away. The question to ask is why any of that would be done, and why those tax policies were in place to begin with. Your point of view seems to be that any reform that takes away some tax benefit has to be bad (even though all tax policy picks some winners and some losers, and this reform seemed more focused on the middle-class and parents than high-earners). This is why it's so politically difficult to do anything that limits or shrinks government.

 

[whatdotigersdreamof]

Explain this to me in elementary terms. I for one have claimed close to 40-50 thousand miles the last few years so my tax return was substantial. I drive a lot for work.

Wasn't this essentially done away with bc the standard deduction for a single person went $12,000 and for married $24,000? I could have written my miles off but was closer to 25-30K this year and did not add up close to the standard deduction.

I think in exchange for raising the standard deduction certain things ( mileage being one) were taken off the table completely.

 

[ClemsonReign]

Lots of folks on this board are going to be devastated by AOCs suggested 70% rate on income over 10 million too.

When you say a lot of people, who are the other 8 figures earners other than @Cris_Ard that would be effected?

 

[Buzzards Roost]

I am quite anxious and have set aside some funds in case I have to pay a lot in. My top rate is certainly lower but only 1/3 of my SALT is now deductible. And none of IPTAY. I hope it is a wash but I expect I will be hurt. Luckily when I retire my income will go away and i won’t care

 

[dpotter24]

Looks like my family will lose out on thousands of dollars in unclaimed mileage this year.

If you were previously claiming mileage to cover anything your company didn't, you're SOL.

This sucks!

Do you itemize or take the standard deduction? It sounds like you itemize everything. Let's not forget that the standard deduction literally DOUBLED and that may be your best avenue this year. My tax refund definitely increased.

 

[rbrugger10]

Your standard deduction is much higher. So you should be able to do away with a lot of the work putting together tax savings that won't add up to the new higher standard deduction.

 

[dpotter24]

Explain this to me in elementary terms. I for one have claimed close to 40-50 thousand miles the last few years so my tax return was substantial. I drive a lot for work.

Wasn't this essentially done away with bc the standard deduction for a single person went $12,000 and for married $24,000? I could have written my miles off but was closer to 25-30K this year and did not add up close to the standard deduction.

This guy gets it

 

[BAnksMcFadden]

Funny how it's never fvcking enough. The Feds can't be responsible for budgeting the People's money, cutting their costs....just being responsible. That's a got damn word all in the government and half the country don't understand. R E S P O N S I B I L I T Y. Not a hard concept actually.

They are responsible for there being an income tax to begin with. Which is unconstitutional and generally ridiculous.

 

[tigrbybirth]

Funny how it's never fvcking enough. The Feds can't be responsible for budgeting the People's money, cutting their costs....just being responsible. That's a got damn word all in the government and half the country don't understand. R E S P O N S I B I L I T Y. Not a hard concept actually.

I'm not sure I get your point. What are you trying to say?

 

[midnightmzll]

Explain this to me in elementary terms. I for one have claimed close to 40-50 thousand miles the last few years so my tax return was substantial. I drive a lot for work.

Wasn't this essentially done away with bc the standard deduction for a single person went $12,000 and for married $24,000? I could have written my miles off but was closer to 25-30K this year and did not add up close to the standard deduction.

While the standard deduction did increase they completely removed personal exemptions, which they always fail to mention. The doubling of the deduction makes for a great headline but when you remove the $4,050 exemption you really only pick up another $2k. The biggest "losers" with the loss of the exemptions is large families.

 

[tigrbybirth]

They are responsible for there being an income tax to begin with. Which is unconstitutional and generally ridiculous.

Funny thing about the constitution, they have these things called amendments. The first 10 enumerated our rights. Others have done things like free slaves, or give women the vote. Number 16 gave the federal government the right to start an income tax.

 

[RUBDROC]

Call your politicians. I make a he'll of a fuss. It actually works if you can get enough people to do it

 

[BAnksMcFadden]

Funny thing about the constitution, they have these things called amendments. The first 10 enumerated our rights. Others have done things like free slaves, or give women the vote. Number 16 gave the federal government the right to start an income tax.

Well slavery and women not voting were themselves unconditional... So saying that the amendments making those things legal and comparing that to the 16th amendment is a logical fallacy

 

[WidespreadTiger]

My refund doubled, hopefully my refund came from some liberal douche’s loss.

 

[rht7467]

Which ones are higher? Or are some just the same? I though they were all lower?

Edit: looks like the only one that wasn’t lowered is 35% bracket, which stayed the same

Yes, but 35% is also a huge bracket now. In 2017, for single persons, it only covered income from ~$416k to $418k. For 2018, it covers income of $200k to $500k. So, there are a lot more middle class taxpayers who were previously capped at 33% who are now in the 35% bracket.

 

[tigrbybirth]

While the standard deduction did increase they completely removed personal exemptions, which they always fail to mention. The doubling of the deduction makes for a great headline but when you remove the $4,050 exemption you really only pick up another $2k. The biggest "losers" with the loss of the exemptions is large families.

My itemized deductions have always been in the $40K range, so doubling the standard deduction did nothing for me. Tax rte changes, however, did lower my taxes. One of the problems with the last tax bill is that it stimulated the economy unnecessarily. That just caused the fed to tighten up interest rates, which slowed it down, but also increases the federal deficit. That deficit, more so than any trade deals is what creates our trade deficits with other countries.

 

[tiger61886]

Well my wife screwed up with her taxes so there’s probably going to be a $5000 swing from being in the positive to having to owe. Looking forward to that conversation....

 

[rht7467]

While the standard deduction did increase they completely removed personal exemptions, which they always fail to mention. The doubling of the deduction makes for a great headline but when you remove the $4,050 exemption you really only pick up another $2k. The biggest "losers" with the loss of the exemptions is large families.

This.

The loss of the personal exemption is very significant factor in the overall tax picture, and it mitigates much of the benefit of the doubled standard deduction.

That said, for most, doubling of the standard deduction did accomplish one of Trump's campaign promises of simplifying tax filings. The number of people who previously itemized and who are now taking the standard deduction will be huge. (Conversely, business owners are probably faced with a lot more complexity relative to prior years.)

 

[steele-tiger]

While the standard deduction did increase they completely removed personal exemptions, which they always fail to mention. The doubling of the deduction makes for a great headline but when you remove the $4,050 exemption you really only pick up another $2k. The biggest "losers" with the loss of the exemptions is large families.

Yes. The increase in the Standard Deduction from $12,700 to $24,000 coupled with the loss of the Personal Exemption means that the overall deduction is +$3,200 for Married Couple, -$850 for Married Couple with 1 Kid and -$4,900 for Married Couple with 2 kids and gets worse by $4050 for each addition child.

Single with no kids and you get an extra $1,600.

You do get an extra $1,000 Child Tax Credit, which basically makes it a wash for 1 child and the brackets in general are a little bit lower, so for some they will save some and others will owe a little bit more.

All in all the biggest winners were rich and corporations.

 

[IcelandTiger]

Yes, but 35% is also a huge bracket now. In 2017, for single persons, it only covered income from ~$416k to $418k. For 2018, it covers income of $200k to $500k. So, there are a lot more middle class taxpayers who were previously capped at 33% who are now in the 35% bracket.

Didn’t look at the single brackets, the 35% bracket range did change a lot
The married brackets didn’t really change very much

200,000 plus for a single person is middle class?

 

[rht7467]

Well slavery and women not voting were themselves unconditional... So saying that the amendments making those things legal and comparing that to the 16th amendment is a logical fallacy

No, a logical fallacy is saying that the income tax is "unconstitutional" (i.e., a reference to the "constitution"), while ignoring a specific (and very explicit) provision in the Constitution that authorizes the income tax.

 

[BAnksMcFadden]

No, a logical fallacy is saying that the income tax is "unconstitutional" (i.e., a reference to the "constitution"), while ignoring a specific (and very explicit) provision in the Constitution that authorizes the income tax.

Please quote you socialist

 

[steele-tiger]

200,000 plus for a single person is middle class?

Lower Middle Class on TI. Top 5% in US even if you are married.

 

[rht7467]

Didn’t look at the single brackets, the 35% bracket range did change a lot
The married brackets didn’t really change very much

200,000 plus for a single person is middle class?

Fair points. The changes for married couples isn't nearly as significant, but the changes in the income levels makes it pretty taxpayer specific.

 

[rht7467]

Please quote you socialist

You already referenced the 16th amendment.

 

[iceheart08]

When you say a lot of people, who are the other 8 figures earners other than @Cris_Ard that would be effected?

There are lots of us out there who will seriously think about moving to another country of %70 of my hard earned money will go to socialists.

 

[Tiger1425]

Your standard deduction is much higher. So you should be able to do away with a lot of the work putting together tax savings that won't add up to the new higher standard deduction.

Standard deduction is higher. But, exemptions are gone right? Anyway, I haven't used itemized deductions in years. I think I will save some. Probably not much.

 

[southerncaltiger]

Lower Middle Class on TI. Top 5% in US even if you are married.

“SoCal” Middle Class. $100k is poverty line. Lol.