Has anyone noticed the impact of the new income tax laws?
New income tax law
- Thread starter ALDABRAMAN
- Start date
I have and it was significant, honestly i was very surprised!
I was under the impression that it all went into effect next year. What impacts are you referring to. I like that liberal states can't hide there awful taxes, and pass that cost onto the rest of us. Sorry if you live in one of those States.
Haven’t noticed first hand yet but I can’t wait to!
Yeah, I wondered about that. More on your check, but less on your income tax return. I don't think it affects me as I only get Social Security.
My taxes are so complex and convoluted. I have stacks of 1099s and W2s and a DBA, so I have no idea what the net effect will be. I have a really gifted tax lady, and I'm sure she'll be able to explain it to me when the time comes. I don't know what any of it means. I couldn't tell a "schedule C" from a hole in the ground.
Greetings...
Well, sadly for those in the middle class who will not benefit from child tax credits (and sadly our tortoises don’t count as children as far as the IRS is concerned), they will enjoy an increase in their paycheck, BUT, come tax time, they will pay A LOT more in taxes.
The new tax law has capped or removed A LOT of the deductions that Americans have counted on in the past, and those will amount to a lot more than the increase that you will see in your paycheck. Let’s say, someone used to be in the 25% Federal tax bracket, now they will be in the 22% Federal tax bracket, so yippeee, yes, you will see a 3% increase in your pay check. However, come tax time, the new tax law caps the deduction on your State taxes (6-8% dependending on where you are, unless your State has no state tax) in addition to your property taxes (another few thousand dollars, especially if you own a second home), both capped at $10,000 limit. You will lose your deductions for anything above this $10k cap. They also capped the deductions on charitable donations and a few other deductions that Americans used to count on. As a result, in a lot of cases, this will amount to thousands of dollars more than the increase you will see in your paycheck.
The stupid thing is that the $10k cap is the same whether you are single, or married filing jointly, so married people are screwed. Also screwed are small businesses who will also lose a lot of the deductions. So my advice, before you get too excited about the increase in your paycheck, consult an accountant on your particular situation, and hopefully you’re one of the few lucky ones who will not owe a lot more at tax time than what your paycheck increase amounts to. Good luck.
Well, sadly for those in the middle class who will not benefit from child tax credits (and sadly our tortoises don’t count as children as far as the IRS is concerned), they will enjoy an increase in their paycheck, BUT, come tax time, they will pay A LOT more in taxes.
The new tax law has capped or removed A LOT of the deductions that Americans have counted on in the past, and those will amount to a lot more than the increase that you will see in your paycheck. Let’s say, someone used to be in the 25% Federal tax bracket, now they will be in the 22% Federal tax bracket, so yippeee, yes, you will see a 3% increase in your pay check. However, come tax time, the new tax law caps the deduction on your State taxes (6-8% dependending on where you are, unless your State has no state tax) in addition to your property taxes (another few thousand dollars, especially if you own a second home), both capped at $10,000 limit. You will lose your deductions for anything above this $10k cap. They also capped the deductions on charitable donations and a few other deductions that Americans used to count on. As a result, in a lot of cases, this will amount to thousands of dollars more than the increase you will see in your paycheck.
The stupid thing is that the $10k cap is the same whether you are single, or married filing jointly, so married people are screwed. Also screwed are small businesses who will also lose a lot of the deductions. So my advice, before you get too excited about the increase in your paycheck, consult an accountant on your particular situation, and hopefully you’re one of the few lucky ones who will not owe a lot more at tax time than what your paycheck increase amounts to. Good luck.
not sure what you consider middle class , I believe the median household income in the united states is $55,000-60,000 ...... the standard deduction has been doubled for a family to $24,000 , a middle class person can deduct 1/2 their income ? the child credit is doubled to $1600 , the earned income credit was left intact ? I run a small business , this tax change didn't screw anyone I know of ? what screwed them , and everyone who pays for their own insurance , was aca ........... it sure outwardly appears to be aimed at the middle class I know .....
The doubled standard deduction helps us. We never have enough deductions to itemize anyway. Unless your itemized deductions were more than double the standard deduction, you should still do better.
ACA kills me. I pay $766 a month for one person and there are almost no doctors near me that take it, certainly no specialists. The deductible is $5000, so it isn't likely I'll be reaching that.
did my taxes today , the first full look at the new tax law , at least as it pertains to me ……. I paid $2200 less in federal taxes over the year as opposed to last year …….. my state and federal returns amounted to $400 more than I got last year …… so I got an additional $217 a month more than I did last year …….
We did better this year too, even though we are in California. We never had enough to itemize before, usually, because we don't have a mortgage, so it was great getting the larger standard deduction. Not to mention, it was so much easier not having to add up all the possible deductions to see if we had enough to itemize.
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