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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 Tim 
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    Joined: 09/18/2018

    To balance a budget:
    Raise revenues either rates or the ceilings.
    Reduce expenditures either delay or amounts.

    Which do you choose? That’s NOT an emotional appeal, anyone can build a case that it’s unfair burden.

    #192139 Reply
    Avatar BCBiker 
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    e’ve seen is the party not in power uses the debt and deficits as a bludgeoning tool to help them get elected.  Tax overhaul was supposed to be the end of days and are to cause trillions in deficits, robbing our children of their future.  Now Democrats are more than happy to sign on to omnibus spending bills that show no fiscal restraint, and not a peep about the debt.  Republicans did it under Clinton only to run up deficits under Bush.  Same with Obama and then regaining control in

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    Comparing gross tax revenue between decades is a fairly obtuse perspective.  There is the GDP growing plus inflation that compound.  Economists tend to focus on debt to GDP ratio to see which countries that are heading for sovereign debt crises.  Those of us in early to mid career should all be prepared as the US will likely have a sovereign debt crisis at some point in our lifetime.  It probably won’t be in the next ten years but probably will in the next 50 years if the parties don’t break out of their tendencies that lead to increased deficit.  Technology is the wildcard everyone bets on to allow the economy to outpace poor decisions of congress. In some ways it will be fun to watch how it plays out.

    #192197 Reply
    ENT Doc ENT Doc 
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    anyone can build a case that it’s unfair burden.

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    To whom?

    #192224 Reply
    Avatar MaxPower 
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    Had my meeting with our CPA today. Just looking at some preliminary numbers, I made about $30k more than last year, and had about $13k less withheld, despite not changing my withholdings. I did lose about $33k in itemized deductions due to SALT (I live in Idaho, so relatively high state income tax). About $6500 of AMT will go away, and my CPA thinks it will be about a wash despite $30k more in income. Just goes to show that it isn’t only high earners on the coasts that get hurt by the new tax law, although in our case I think the “loss” of AMT and lower tax rates should help us out.

    #192228 Reply
    SLC OB SLC OB 
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    Had my meeting with our CPA today. Just looking at some preliminary numbers, I made about $30k more than last year, and had about $13k less withheld, despite not changing my withholdings. I did lose about $33k in itemized deductions due to SALT (I live in Idaho, so relatively high state income tax). About $6500 of AMT will go away, and my CPA thinks it will be about a wash despite $30k more in income. Just goes to show that it isn’t only high earners on the coasts that get hurt by the new tax law, although in our case I think the “loss” of AMT and lower tax rates should help us out.

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    Thanks for bringing this topic back to the original posters desires (and away from politics)!

    Interesting that with the raise, high tax state, and loss of itemized deductions that you came out basically ahead (since you paid the same taxes on more money). Good for you.

    My CPA has all my info… but have not heard a peep from them yet. Likely the are sifting through the mounds of papers I sent them! 😉

    #192238 Reply
    Liked by JBME
    Avatar EMscout 
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    2018: 377k (1 salary) AGI effective tax rate 19.5% 5,500 refund
    2017: 413k (2 salaries) AGI effective tax rate 25% 3,000 refund

    #192242 Reply
    Liked by Tim
    Avatar ITEngineer 
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    CPA thinks it will be about a wash despite $30k more in income

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    Wouldn’t that mean that you benefited from the new tax bill because your tax bill didn’t go up? The old one would have had you paying taxes on that $30k in extra income (because your deductions would have been the same) if I understand what you are saying.

    #192284 Reply
    Avatar Peds 
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    Joined: 01/08/2016

    2018: effective fed 13.9%…..

    #192776 Reply
    Liked by jacoavlu, SLC OB
    Avatar Larry Ragman 
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    Status: Other Professional
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    Joined: 08/30/2018

    Had my meeting with our CPA today. Just looking at some preliminary numbers, I made about $30k more than last year, and had about $13k less withheld, despite not changing my withholdings. I did lose about $33k in itemized deductions due to SALT (I live in Idaho, so relatively high state income tax). About $6500 of AMT will go away, and my CPA thinks it will be about a wash despite $30k more in income. Just goes to show that it isn’t only high earners on the coasts that get hurt by the new tax law, although in our case I think the “loss” of AMT and lower tax rates should help us out.

    Click to expand…

    Thanks for bringing this topic back to the original posters desires (and away from politics)!

    Interesting that with the raise, high tax state, and loss of itemized deductions that you came out basically ahead (since you paid the same taxes on more money). Good for you.

    My CPA has all my info… but have not heard a peep from them yet. Likely the are sifting through the mounds of papers I sent them!

    Click to expand…

    I think this must be a common result. I made ~$50k more, withheld at the same rate, lost $20k in deductions to SALT limitations, but still itemized, skipped the AMT, and paid the same in federal taxes. Well, this year I had some TLH and a credit from the AMT no longer applying, but tax ended up within $1K of 2017. I assume the tax brackets made the biggest difference, though having no AMT saved me $5K. I’ll take it! (It was still more in taxes than I ever expected to make in annual salary!)

    #194009 Reply
    Liked by Antares, Tim
    SLC OB SLC OB 
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    Joined: 06/23/2018
    Splash Refinancing Bonus

    Had my meeting with our CPA today. Just looking at some preliminary numbers, I made about $30k more than last year, and had about $13k less withheld, despite not changing my withholdings. I did lose about $33k in itemized deductions due to SALT (I live in Idaho, so relatively high state income tax). About $6500 of AMT will go away, and my CPA thinks it will be about a wash despite $30k more in income. Just goes to show that it isn’t only high earners on the coasts that get hurt by the new tax law, although in our case I think the “loss” of AMT and lower tax rates should help us out.

    Click to expand…

    Thanks for bringing this topic back to the original posters desires (and away from politics)!

    Interesting that with the raise, high tax state, and loss of itemized deductions that you came out basically ahead (since you paid the same taxes on more money). Good for you.

    My CPA has all my info… but have not heard a peep from them yet. Likely the are sifting through the mounds of papers I sent them!

    Click to expand…

    I think this must be a common result. I made ~$50k more, withheld at the same rate, lost $20k in deductions to SALT limitations, but still itemized, skipped the AMT, and paid the same in federal taxes. Well, this year I had some TLH and a credit from the AMT no longer applying, but tax ended up within $1K of 2017. I assume the tax brackets made the biggest difference, though having no AMT saved me $5K. I’ll take it! (It was still more in taxes than I ever expected to make in annual salary!)

    Click to expand…

    Larry Ragman Do you live in a high tax state? I’m in California, so interested… 😉

    #194086 Reply
    Avatar Larry Ragman 
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    Status: Other Professional
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    Joined: 08/30/2018

    SLC OB, I am in Maryland. Not the highest state taxes, but still a blue state. My tax bill was in the low 30s for MD, but of course SALT now limited to $10K.

    #194127 Reply
    Liked by SLC OB
    White.Beard.Doc White.Beard.Doc 
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    Status: Physician
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    Joined: 02/06/2016

    Today I finally got my return back from the tax accountant.  Yes, the new federal marginal rate is lower, but the loss of the SALT deduction killed me.

    My combined federal and state effective rate:

    2017: effective 39.2% (without FICA)

    2018: effective 41.8% (without FICA)

    I try to frame this as a contribution to the greater good of country and my fellow citizens.  However, if the government was more effective at spending wisely, that would help.

    #205533 Reply
    Avatar Tim 
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    Status: Accountant
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    Joined: 09/18/2018
    Earnest refinancing bonus

    I admire the brave attempt contributing to the common good. I enthusiastically support the proposed improvements.
    “However, if the government was more effective at spending wisely, that would help.”

    I watched the Appropriations Committee regarding the DOJ appropriations today. Unfortunately, not one mention of spending or programs or even dollars. Certainly seemed many politically astute persons wisely use their TV time. Not interested in spending. 2.9% ouch!

    #205565 Reply
    Avatar burritos 
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    Status: Physician
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    Joined: 04/23/2018

    Got returns this a few days ago. Live in HCOL west coast. We made a little less this year, but now owe 30k less in taxes per year. (Accountant is worth every penny we pay her). Wife strongly dislikes our current POTUS, but when I asked if she was going to vote for him next time around, she remained eerily silent(Apologies for an earlier post that interjected some politics, apologies if this last sentence is too).

    #205742 Reply
    Liked by Larry Ragman
    Vagabond MD Vagabond MD 
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    Status: Physician
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    Joined: 01/21/2016

    There are too many differences between 2017 and 2018 to make it a meaningful comparison. The big ones include me going part time in 2018 and earning less and is donating $50k+ to charity and DAF in 2017 vs. few cash contributions in 2018.

    Suffice to say, our effective Federal rate is 1-1.5% less than last year.

    #205751 Reply
    Liked by Tim

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