Federal Tax Return

[jclalor 12]

With Trumps new tax cuts, he had the IRS reduce the amount that’s withheld, this gave the illusion his tax cut gave you more. This will mean your tax refund for this year will be a fraction of what it was last year.

[RonD1120 62]

jclalor

With Trumps new tax cuts, he had the IRS reduce the amount that’s withheld, this gave the illusion his tax cut gave you more. This will mean your tax refund for this year will be a fraction of what it was last year.

It is better to invest a portion of your income rather than rely on your tax refund. The IRS uses withholdings interest-free. Put the difference in withholding into a savings account and you will come out ahead.

Look for the shiny things of God revealed by the Holy Spirit. They only last for an instant but it is a Holy Instant. Let your soul absorb them.

[AtrusBatleth 0]

Of course we won't know for sure until we file 2018 taxes, but in general I think less federal withholding is a good thing. Federal always withholds way too much, ending up with a huge refund. I would rather have my own money available to me instead of sticking it in an IRS savings account that earns no interest and I can only access once a year. Years ago through trial and error each paycheck, I increased the number of exemptions until the withholding was around where I wanted it (so my return would only be a few hundred). I had to claim like 20 kids before the math worked out right (I only have 2).

As far as Trumps tax plan, I guess it depends on your situation. My withholding didn't really change at all in January. But then, maybe that's because my W-4 claims 20 exemptions.

Max Peck
What's the point of having top secret code names, fellas, if we ain't gonna use 'em?

[Westerly 61]

You're complaining that you're not loaning the government enough money interest free? Well, I have good news for you. You are welcome to withhold your entire paycheck if you want to. It's called additional withholdings, and you can specify any value you want. It's right on the W4 at the bottom.

[yoink 321]

RonD1120

***With Trumps new tax cuts, he had the IRS reduce the amount that’s withheld, this gave the illusion his tax cut gave you more. This will mean your tax refund for this year will be a fraction of what it was last year.

It is better to invest a portion of your income rather than rely on your tax refund. The IRS uses withholdings interest-free. Put the difference in withholding into a savings account and you will come out ahead.

I don’t say this often, but I agree with Ron.

[kallend 2,106]

Westerly

You're complaining that you're not loaning the government enough money interest free? .

I did not interpret his post that way.

I interpreted it as an observation that the government has implemented the cuts and withholding in a deceptive way. Which is par for the course.

...

The only sure way to survive a canopy collision is not to have one.

[billvon 3,070]

>Of course we won't know for sure until we file 2018 taxes, but in general I think less
>federal withholding is a good thing.

Well, just enough withholding to result in you owing money with no penalties is pretty ideal.

[jclalor 12]

billvon

>Of course we won't know for sure until we file 2018 taxes, but in general I think less
>federal withholding is a good thing.

Well, just enough withholding to result in you owing money with no penalties is pretty ideal.

We don’t have to wait, it’s simple enough to figure out now. I will receive half of what I received last year. It’s no biggie for me, but their are lots of folks that that use their refunds for down payments on cars, vacations and so on. They will be disappointed.

Of course it’s ideal to have your deductions at a minimum and invest it on your own. But the reality is most working class folks won’t do this.

[normiss 851]

For most of the lower income working class, personal finance is lucky to be survival and nothing to do with behavior.

[ChrisD2.0 2]

normiss

For most of the lower income working class, personal finance is lucky to be survival and nothing to do with behavior.

Increasing the "misc. deductions" was and is a big win for many low income people. that said it is also a big loss to the middle class that depended upon these deductions to be considered the middle class.

But your so spot on about how low income individuals and families is a matter of survival. The safeguards that so many point to and indicate all anyone has to do is just apply,...well many of these alleged social supports don't exist for large populations. Combined with the red tape and abuse inherent in these systems, and no debate whatsoever those in need frequently can not navigate the system designed to assist them. BUT remember this has been going on for years and is essentially a non-partisan policy. Except for Johnson, who's reforms went unnoticed because of a little skirmish in Asia, since the 60s' most all elected officious, except the early Maxine Waters, have reneged on their promises, to this segment of our population.

So ya Mark, spot on about noticing that society itself has ditched the really low income population. It's not just the elected officios that are responsible for this one. It is not a societal goal to help those in the most need. It is a societal goal to blame others for the faux responsibility at the heart of this issue. any politician will do,...all that does is just shift blame, endlessly, from the real cause.

Brett Bickford Did Not Commit Suicide.

He is the victim of ignorance and faulty gear. AND as in the movie: "12 Angry Men," of an ignorant and callous jury.

[Iago 8]

Well, look at it this way. Roughly two-thirds if households take the standard. They either don't have enough to itemize, don't know how, or don't want to because it really can be a pain to keep track of everything. Plus there's all the thresholds of tracking medical expenses above 4% of AGI and checking to see if Jupiter was in the second House of Virgo that year.

Blah, blah, blah. Really big pain in the rear.

If you sit down and run the numbers, the large majority are coming out ahead of last year with the increased standard deduction. Some of those other households that itemized will say 'hell it's just not worth it this year, how about we take the kids to the park instead of digging through receipts for the next week.'

First step in simplifying the gargantuan octopus of the US tax code, and I say it's about damn time someone took the first baby step.

Confirmed cynical sarcastic bastard since 2003

[ChrisD2.0 2]

Iago

Well, look at it this way. Roughly two-thirds if households take the standard. They either don't have enough to itemize, don't know how, or don't want to because it really can be a pain to keep track of everything. Plus there's all the thresholds of tracking medical expenses above 4% of AGI and checking to see if Jupiter was in the second House of Virgo that year.

Blah, blah, blah. Really big pain in the rear.

If you sit down and run the numbers, the large majority are coming out ahead of last year with the increased standard deduction. Some of those other households that itemized will say 'hell it's just not worth it this year, how about we take the kids to the park instead of digging through receipts for the next week.'

First step in simplifying the gargantuan octopus of the US tax code, and I say it's about damn time someone took the first baby step.

Great points!!!

IMO I would be careful about the income brackets. The increase in the "standard" is a big win for the low, low, income bracket. No doubt about that. A big win for them. "Rally big." As the pres would say.

But there is a larger, much larger population of the middle class that will be hit hard by not being able to take the misc. deductions. As well as the damage done to real charities, and yes I know it's still a deduction but the public won't donate enough, en masse, for the charities to recoup. And ya, that's what some are counting on. It is a big pain to arrange tax returns. Simplification is not without victims, but your point is very well taken. For many the tax code is insane,...all in an effort over the years to be fair to everyone though. And your never going to please everyone.

I love what yo have to say, but the media and public apathy and opinion will lump everyone into the same category. This is the issue about taxes.

Each orator will advance their agenda and frame and spin a complex issue into their pet project. The public will vote with whatever sounds reasonable and how their are primed.

My point is no matter how you slice and dice many issues, the ultra low income people, who actually need help, are unable to obtain the services they need. AND this as Mark points out constantly, ( and rightfully so) has been going on for years. Since the Johnson Administration, IMO. AND I place blame squarely on the liberals who created this very issue. There are severe unintended consequences for un-monitored and too liberal social programs. NIH, Dept of Agriculture, etc, etc, have noted this for years. It is distressing to actually see that well intentioned programs get so mistreated that the very populations they were designed to serve get ignored by those that continue to purportedly support them. These very liberal programs are creating more problems than they are solving. Throwing more money on the issue, makes them worse. This is the fact that the public just doesn't understand.

Brett Bickford Did Not Commit Suicide.

He is the victim of ignorance and faulty gear. AND as in the movie: "12 Angry Men," of an ignorant and callous jury.

[headoverheels 333]

ChrisD2.0

The increase in the "standard" is a big win for the low, low, income bracket. No doubt about that. A big win for them. "Rally big." As the pres would say.

The increase in standard deduction is mostly offset by the loss of $4050 per person personal exemption, and for families of 4 the total deduction (4 exemptions plus standard deduction) seems to be a loss for those that were taking the standard deduction before. With the cap on deduction of state taxes, I will probably not be itemizing except in years where medical expense or charitable donations make it worthwhile.. Both of us are retired, and we show under $100k of income on a joint return, so I don't expect to pay any federal taxes anyway until my wife starts drawing SSI, or we have to take minimum IRA distributions.

[jclalor 12]

I hate to say I told you so... but I told you so.

 

https://www.cbsnews.com/news/tax-returns-refunds-given-out-so-far-this-year-are-smaller-than-in-2018-irs-data/

[Iago 8]

I haven't done mine yet.  I usually do a pro-forma in December so I can make last minute adjustments.  Curious what the total tax liability difference will be in actuality.  

 

Unfortunately, news stories like this just point out the extreme need for basic financial education in this country.

[billvon 3,070]

1 hour ago, Iago said:

Unfortunately, news stories like this just point out the extreme need for basic financial education in this country.

That would tend to reduce Trump's support - so I don't think you will see any work in that direction for a few years.

[headoverheels 333]

3 hours ago, billvon said:

That would tend to reduce Trump's support - so I don't think you will see any work in that direction for a few years.

Such financial education was a big part of what ACORN did. Too bad false accusations ended their existence.

[Iago 8]

I thought that whole ACORN business was bullshit when it came out.  Oh, I’m a pimp with underage girls can you help me do my taxes?  That guy should’ve been punched in the face and turned into the cops right there.  Oh, you’re not really a sex trafficking pimp?  Sorry, my bad.

The really bad part is the people who really need financial advice can’t afford it.

Edited February 10, 2019 by Iago

[kallend 2,106]

11 minutes ago, Iago said:

I thought that whole ACORN business was bullshit when it came out.  Oh, I’m a pimp with underage girls can you help me do my taxes?  That guy should’ve been punched in the face and turned into the cops right there.  Oh, you’re not really a sex trafficking pimp?  Sorry, my bad.

The really bad part is the people who really need financial advice can’t afford it.

[Iago 8]

1 minute ago, kallend said:

Yeah, that’s about right.  

[kallend 2,106]

Recall that Trump claimed (on video) that the average American would be $4,000 better off as a result of his tax cuts.  That's "American", not taxpayer or family.

Of course, that average includes Sheldon Adelson the casino owner, who is estimated to save $670,000,000 in taxes as a result of the cuts, and he only had to pay $30,000,000  lobbying the GOP to get it.

As an aside, since the house always wins, how come Trump went bankrupt running a casino?

Edited February 10, 2019 by kallend

[kallend 2,106]

7 minutes ago, Iago said:

Yeah, that’s about right.  

Jeff Bezos can afford a lot.  That will be interesting.

[gowlerk 2,249]

43 minutes ago, kallend said:

As an aside, since the house always wins, how come Trump went bankrupt running a casino?

As I'm sure you know, his casino went bankrupt. Trump made out like a bandit.

[billvon 3,070]

1 hour ago, kallend said:

Recall that Trump claimed (on video) that the average American would be $4,000 better off as a result of his tax cuts.  That's "American", not taxpayer or family.

Of course, that average includes Sheldon Adelson the casino owner, who is estimated to save $670,000,000 in taxes as a result of the cuts, and he only had to pay $30,000,00  lobbying the GOP to get it.

That's Trump math, similar to the claim that the average American has more Native American genes than Elizabeth Warren.

If there are 1000 people out there, and 999 of them have to pay another $1000 in taxes, but the last person gets a $1 million tax break - then, on average, taxes have gone down.  But the AVERAGE person is paying more.

 

[kallend 2,106]

1 hour ago, billvon said:

That's Trump math, similar to the claim that the average American has more Native American genes than Elizabeth Warren.

If there are 1000 people out there, and 999 of them have to pay another $1000 in taxes, but the last person gets a $1 million tax break - then, on average, taxes have gone down.  But the AVERAGE person is paying more.

 

We have the BEST GOVERNMENT money can buy.