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I've only put my W2's into to TurboTax and everything looks normal so far (at least federally). I haven't put any deductions in yet though. I never understand how I consistently get back a few thousand from federal but always end up owing state a couple hundred... lol I hardly ever get money back from state and if I do, it's never enough even cover the e-file cost so I end up having to mail it in. One year I literally got back ONE DOLLAR... They seriously sent my a CHECK for $1. It cost more to prints and mail that check than what that check was worth...
I did mine. Refund dropped by a bunch, but in looking at the year over year comparison on Turbo Tax, my overall tax rate dropped by about a half percent. The reduction in withholding rates last year about this time is what reduced the refund. I am also in a situation where I maxed out my deductions. Between state tax, mortgage interest and property tax, I exceeded the $10k cap by a lot. That means that my charitable deductions don't count for anything. I wonder if that will end up hurting non-profits.
As a business owner who makes monthly estimated payments, taxes are way over my head. Bundled up the proverbial shoebox of receipts, travel logs, etc. and shipped them off to the accountant. Having about a 33% increase in earnings this year, it will be interesting to see how much I will still need to pay. I see people complaining about tax brackets, my base rate starts out at around 35% but she is able to wave her magic wand and get it down in the 20-25% range each year. I have a hard time reading complaints about people whose adjusted income results in a tax around 12%. Small business owners get the shaft.
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I don't think you can actually max out your deductions...
did you mean to say that your mortgage interest and property tax exceeded the cap, and that your charitable deductions were not enough to get you over the already provided standard deduction of $12,000 single, $24,000 joint?
The standard deduction nearly doubled to $12,000 for individuals and $24,000 for married couples filing jointly.
Capping the state, local and property tax deductions at $10,000 means that you could have more difficulty collecting enough deductions to itemize. And if you no longer reach the threshold to itemize, you won’t be able to deduct your charitable donations.
did you mean to say that your mortgage interest and property tax exceeded the cap, and that your charitable deductions were not enough to get you over the already provided standard deduction of $12,000 single, $24,000 joint?
The standard deduction nearly doubled to $12,000 for individuals and $24,000 for married couples filing jointly.
Capping the state, local and property tax deductions at $10,000 means that you could have more difficulty collecting enough deductions to itemize. And if you no longer reach the threshold to itemize, you won’t be able to deduct your charitable donations.
Then you did yours wrong. The 10K cap applies only to SALT (State and Local Taxes), your charitable giving, mortgage interest, etc is not impacted by the 10K cap. Based on your username it does not appear you live in OK, but if so, we have our own issues with caps.
The overall expectation is that refunds will be down if not people owing as the withholding tables were adjusted. And because people are stupid, they will think their taxes went up because they owe instead of getting a refund, even though their tax burden decreased.
The overall expectation is that refunds will be down if not people owing as the withholding tables were adjusted. And because people are stupid, they will think their taxes went up because they owe instead of getting a refund, even though their tax burden decreased.
Well we had a big year so I paid a bunch in taxes...BUT, I paid most of that on a once in a lifetime bonus and didn't change my withholding so we get a far bigger return than I would have under the old tax laws...like $6K more. So this has been a great year for the Trump tax changes to take effect for us...hope many others are similarly affected. Being that our itemized deductions are still bigger than the new standard deduction also helped us. Could be an issue next year...since we will make less and thus only be able to give accordingly. I would think the new tax laws will help givers and non-givers considering the big jump in the standard deduction and the inclusion of itemized deductions still for those that qualify over the standard.
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True, but by saying he hit the cap because of SALT and mortgage interest and that charitable wouldn't count is incorrect. Maybe charitable won't count because he doesn't reach the higher standard deduction so none of it does, but if I can't itemize because of the higher standard deduction, I'm OK with that. I didn't lose anything that I didn't have last year or wasn't going to do this year. I think the impact on non-profits is potentially overstated. I give because I want to give, not for the deduction. If I give solely for the deduction, I'm an idiot. Why pay a dollar to potentially save 39 cents. I'm still 61 cents poorer.
Now the elimination of the miscellaneous itemized deductions, especially the employee business expenses, that will be a killer for some.
SALT limitation is also potentially overstated due to AMT. SALT was one of the biggest drivers of AMT, so yeah, you got the deduction, but they took it away with AMT. Now you just don't get it so they can't take it somewhere else. Much of the tax bill was take away one place, give it back somewhere else.
Now the elimination of the miscellaneous itemized deductions, especially the employee business expenses, that will be a killer for some.
SALT limitation is also potentially overstated due to AMT. SALT was one of the biggest drivers of AMT, so yeah, you got the deduction, but they took it away with AMT. Now you just don't get it so they can't take it somewhere else. Much of the tax bill was take away one place, give it back somewhere else.
I don't know who this guy is but he sounds like a complete idiot... (I read through some his exchanges).... he does not seem to be coherent, or at least has no idea what he's talking about.
best I can tell, he's either confused because of the lower withholding amount, or is wondering why his refund is less.
best I can tell, he's either confused because of the lower withholding amount, or is wondering why his refund is less.
Thus the point of my "and because people are stupid." Don't know the person and maybe his taxes did go up. We will hear a large number of people claim their taxes went up this year because their refund is smaller. People often ask me how to get a bigger refund, the answer is simple, pay more in during the year. I didn't do anything to reduce your taxes, I just created a non-interest, short-term CD that matures when you file your return. People need to look at their actual tax, not their refund. Had my income this year been the same as last, my fed tax would have gone down $1010. And am a "middle-class homeowner and you lowered my taxes. Thank you" Everybody's situation will be different, but as with all things, there are winners and there a losers. My middle-class self is a winner in this. And many of my middle-class clients will also be winners.
