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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?

  • SLC OB SLC OB 
    Participant
    Status: Physician
    Posts: 610
    Joined: 06/23/2018

    Just got my tax packet from my CPA… Compared to last year, I paid a lot more this year in taxes, but I did make more.

    Looking at % from last year to this year, I paid 29.6% for federal and state last year (deducted $73,900) and this year I paid 34.5% for federal and state (only getting to deduct $43,408)

    Didn’t do the calculations if it were under the same rules for 2017 with increase in income… but bummed about the deductions. Figured that was 65% of $30K I would have kept. Oh well…

     

    #206040 Reply
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 3312
    Joined: 09/18/2018
    Compared to last year, I paid a lot more this year in taxes,

    Click to expand…

    What was the effective tax rate for Federal only last year and this year.Was it close to the 34.5% vs 29.6%? Not being nosy, the effect of the impact on taxes is my suggustion, not the cause.

    #206047 Reply
    SLC OB SLC OB 
    Participant
    Status: Physician
    Posts: 610
    Joined: 06/23/2018
    What was the effective tax rate for Federal only last year and this year.

    27.4% for 2018

    23.4% for 2017

     

    I’m married filling jointly, not sure if that matters to you.

    #206050 Reply
    Avatar borg 
    Participant
    Status: Physician
    Posts: 30
    Joined: 03/21/2019

    We paid a bit more—we itemize and our home has $17k property tax—that’s capped at 10k

    #206080 Reply
    Liked by SLC OB
    SLC OB SLC OB 
    Participant
    Status: Physician
    Posts: 610
    Joined: 06/23/2018

    Yep, our property taxes exceed the $10K, not sure if we get to deduct our rental property’s taxes too or if that goes away…

    #206081 Reply
    Avatar GasFIRE 
    Participant
    Status: Physician
    Posts: 231
    Joined: 01/08/2018

    About the same income 2017 vs. 2018. Effective tax rate went down from ~31% to 24%. 199A passthrough was very valuable.

    #206093 Reply
    Liked by Vagabond MD
    Avatar burritos 
    Participant
    Status: Physician
    Posts: 529
    Joined: 04/23/2018

    About the same income 2017 vs. 2018. Effective tax rate went down from ~31% to 24%. 199A passthrough was very valuable.

    Click to expand…

    Yes on this. I didn’t even know what it was, till my accountant told me. Does the entire deduction go away if you make above the combined 415k? Or you just don’t get to deduct the income above 415k?

    #206103 Reply
    Avatar jacoavlu 
    Moderator
    Status: Physician, Small Business Owner
    Posts: 2461
    Joined: 03/01/2018

    I’ll pay about $18k less tax on about $40k more gross income. Child tax credits plus no more AMT more than makes up for significant decrease in itemized deductions, for me. Effective federal rate down from 22% to 15%.

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #206155 Reply
    Avatar gahoo35 
    Participant
    Status: Resident
    Posts: 8
    Joined: 03/27/2017

    2017: AGI – 350k, Effective Federal tax rate: 21.83%

    2018: AGI – 415k, Effective Federal tax rate: 21.36%

    #206164 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 8342
    Joined: 01/09/2016

    Yes, in flyover in a moderate tax state. Total tax bill about 2k more.

    Click to expand…

    I would love to analyze your comparative results and report back to the crowd. This is quite unusual. I hope to post a report on client experience after the dust has settled.

    Johanna Fox Turner, CPA, CFP: I am not your financial advisor; any responses are for general purposes only
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #206184 Reply
    Liked by Vagabond MD

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