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anyone else compare their 2018 federal taxes to old system?

Home Tax Reduction anyone else compare their 2018 federal taxes to old system?

  • Avatar Jack_Sparrow 
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    Status: Physician
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    I’m going to save about 4k on taxes this year when compared to 2017.

    I volunteer on the side doing low income individuals taxes. I think its mainly the low income folks complaining about the tax refund. Part of its math on their part and part of it is they are actually paying higher taxes. For example, Of a sample size of about the 20 people performed so far… Some make ~$35000-$40,000. They generally had 200-300 dollars less taken out of their check over the year ($10 a check), and they are looking at getting a $500 dollar refund… whereas in 2017 most of them saw $1000 dollar refund. So basically they are paying an additional $200 in taxes but alot of them think its $500 because of the refund difference.

    #190276 Reply
    Lithium Lithium 
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    I also do volunteering on the side for the low-income folk.  I think I am just going to stop using the word “refund” and just give it to them straight –  “You loaned the federal government $XXX throughout 2018, which they will now return to you with zero interest.”  I look forward to the reactions.

    #190280 Reply
    Avatar Peds 
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    Are you sure @snowcanyon? Did you calculate AMT?

    #190281 Reply
    Avatar snowcanyon 
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    Status: Physician
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    Yes.

    Are you sure @snowcanyon? Did you calculate AMT?

    Click to expand…

    Yes. The SALT cap really hurt me. Some parts of flyover have fairly high state income taxes.

    #190318 Reply
    Avatar Peds 
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    Yes.

    Are you sure @snowcanyon? Did you calculate AMT?

    Click to expand…

    Yes. The SALT cap really hurt me. Some parts of flyover have fairly high state income taxes.

    Click to expand…

    i am still skeptical, but sucks.

    #190387 Reply
    Avatar billy 
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    Status: Physician
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    Joined: 04/07/2016

    Mine was pretty much the same as last year.  Marginal rate went from 33–>32%.  I lost some deductions due to the SALT, but also gained not having to pay the AMT.  I rent so I can see where if someone had large property tax (hcol area) their 2018 taxes would be higher than years past.

    #191545 Reply
    Avatar ZZZ 
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    Joined: 06/18/2018
    Earnest refinancing bonus

    @jacksparrow

    I call BS on people making 35-40k paying more federal income tax in 2018 compared to 2017. I’m sure a scenario where that is true could be concocted, but it would be the exception.

    #191573 Reply
    Avatar Dusn 
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    Status: Physician
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    Joined: 01/02/2018

    I got a small decrease in taxes.  I consider it a temporary loan from the National Debt until someone in the gov’t realizes that they actually need to pay that debt off and raises taxes back up again high enough to compensate.

    #191578 Reply
    Avatar SwanSong 
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    Status: Physician
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    Joined: 10/22/2016

    Love me some Trump. Our tx bill is about 13k less than it would have bern under the old tax code, which makes me love the guy more. I am in a state with moderate income and property tax, so I lost some SALT deductions, but we still itemized. With the child tax credits, no AMT and the friendlier tax brackets, we came out ahead. Still over 100k in total taxes this year, which was a first. Outside of single, high income earners in highly taxed states, most people came out ahead with this tax bill.

    #191617 Reply
    Avatar Dusn 
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    Fiscal conservatism is dead when, in a rising economy, the so-called conservative party unnecessarily increases the national debt and distributes that debt in the form of temporary tax cuts and you’ve got educated people on a financial website going, “Woohoo! Look at the money I got back!”

    #191653 Reply
    Avatar Jack_Sparrow 
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    Status: Physician
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    Joined: 01/09/2019

    I was in the same boat as I didn’t think it was possible either. I did the returns twice over as I didn’t believe it myself based on just on the obvious reduction in the tax brackets. It is single people with no dependents, who itemized in previous years. Of the 5 people that fit this category, I’ve seen 3 pay slightly more…

    #191675 Reply
    Avatar Tim 
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    Status: Accountant
    Posts: 2306
    Joined: 09/18/2018

    Actually, the anecdotes or withholding, refunds, changes in itemized deductions are all rather amusing. The numerator is defined (this year’s tax)! The key with a graduated rate and deductions is “what is the effective tax rate? Compare that to what? Two choices, 2018 calculated under 2017 rules or 2017 calculated under 2018 rules. Some seem to have done this, but I doubt completely (which would really be a PITA)! I commend those that tried to compute the same data under two sets of rules.

    Comparing amounts last year to this year accomplished nothing . Then the question is did a variance analysis.
    Price/volume/mix. They passed the rules 2017 data recalculated on 2018 rules. Small individual drop.
    They achieved that. The intent was to reduce effective tax rates more at the top to stimulate investment and spending. Anecdotes about “unfair” pointing to high or low tax dollars are worthless. Do the math, calculate the effective tax rate the you can identify the change.

    #191692 Reply
    Avatar Marko-ER 
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    Yes.

    Are you sure @snowcanyon? Did you calculate AMT?

    Click to expand…

    Yes. The SALT cap really hurt me. Some parts of flyover have fairly high state income taxes.

    Click to expand…

    i am still skeptical, but sucks.

    Click to expand…

    Yeah, like MN.  Does anyone in MN live in the Dakotas or Iowa, or even WI (minor difference) for geographic arbitrage?

    #191736 Reply
    Avatar JBME 
    Participant
    Status: Spouse
    Posts: 439
    Joined: 03/26/2018

    Yes.

    Are you sure @snowcanyon? Did you calculate AMT?

    Click to expand…

    Yes. The SALT cap really hurt me. Some parts of flyover have fairly high state income taxes.

    Click to expand…

    i am still skeptical, but sucks.

    Click to expand…

    Yeah, like MN.  Does anyone in MN live in the Dakotas or Iowa, or even WI (minor difference) for geographic arbitrage?

    Click to expand…

    Saint Paul is within commutable distance to Wisconsin, although as you note the differences between WI and MN are so minor it really shouldn’t be a determining factor. The great difference would be anyone who lives in SD (no state income tax) by the MN border, but that’s very few people as the metro area of Sioux Falls really doesn’t spill over into MN. On the other hand, Moorehead, MN is next to Fargo and so there could be geographic arbitrage there

    #191738 Reply
    Avatar Xeno 
    Participant
    Status: Physician
    Posts: 122
    Joined: 01/24/2016

    Very excited to do our 2018 taxes, or as I like to call it, “claiming our family’s share of the $779 billion federal deficit.”

    We’re paying about $10K less for 2018 than 2017.

    #191813 Reply

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