Federal Tax Reform

RCW · Feb 12, 2019

I've done my own taxes since I was a teenager.

Do them last 10+ years with the help of software (H&R Block).

2018 AGI (adjusted gross income) was +2.5% over 2017. Federal tax liability -9%. Most all other aspects were the same.. kid in college, etc.

Our cash refund is less due to lower withholdings.

Bottom line is Uncle Sam took less from my pocket.

Michigankubota · Feb 12, 2019

Most fillers are freaking out due to a smaller refund and don’t relieze they paid in less. I paid in $1009 less in ferderal and getting $212 more back than last year.

Fordtech86 · Feb 12, 2019

Same here, I always do my own taxes using TurboTax. I did pay in less then previous years and tax rate in my bracket did go down from last year according to turbotax. Return isn’t that bad compared to last though.

armylifer · Feb 12, 2019

I paid much less in taxes this year. They withheld much less during the year and I am going to get back less on my refund but the fact is I had much more disposable income this year than I have ever had. This tax reform is great for the American middle class.

mickeyd · Feb 12, 2019

I have always done my own taxes also. I learned early on how since my father was a CPA and became a Tax Layer. He said he won every case every time he went up against the IRS because they didn't even know their own laws.

The big increase in the Standard Deduction this year helped a lot of people get a bigger return since they didn't have enough deductions otherwise.

PHPaul · Feb 13, 2019

I don't understand all this fussing over reduced refunds. As everyone here has noted, it's because of less withholding, more money in your pocket on payday.

All a refund means is that you gave Uncle Sugar a free loan for a year.

I strive for a zero sum game. Haven't nailed it yet, but have come in under $100 a few times.

sagor · Feb 13, 2019

PHPaul said:
I don't understand all this fussing over reduced refunds. As everyone here has noted, it's because of less withholding, more money in your pocket on payday.

All a refund means is that you gave Uncle Sugar a free loan for a year.

I strive for a zero sum game. Haven't nailed it yet, but have come in under $100 a few times.

Same here PH, I strive to not get any refund. In fact, I like it if I owe them a hundred or two, meaning I borrowed that money from the government with no interest for a year. One has to watch it however, if I "borrow" too much (over $2000 tax owing up here in Canada) from them, they will want installment payments over the following year. All a balancing act.
Why people are so happy with refunds, and happier with larger refunds, is beyond reason....

Grouse09 · Feb 13, 2019

Paid less. Felt good. Got my refund in 8 days. That increase in the standard deduction was cool and the lower tax on my income was welcomed as well.

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skeets · Feb 13, 2019

MHO the IRS should be done away with,, impose a flat tax 14 or 17% across the board. No deductions, nothing you make 10000 you pay 15 or 17% you make a Mill same thing. Hooker steel worker coal miner, dont matter you rent you own your living under a bridge. Everybody pays the same, thats about as fair a tax system as you will ever get..
OK Im done ranting now

shootem604 · Feb 13, 2019

We are getting hammered this year. Our "sunny ways" tax and spend federal government is raping the middle class. In addition to extra income tax, there is increased carbon tax provincially, and increased property tax locally.

johnjk · Feb 13, 2019

Just about got all my paperwork together to sit down and do my return. That and a nice 14yr old single malt scotch to keep me nice and calm. Don't forget a good cigar to celebrate when done too!!

boz1989 · Feb 13, 2019

skeets said:
MHO the IRS should be done away with,, impose a flat tax 14 or 17% across the board. No deductions, nothing you make 10000 you pay 15 or 17% you make a Mill same thing. Hooker steel worker coal miner, dont matter you rent you own your living under a bridge. Everybody pays the same, thats about as fair a tax system as you will ever get..
OK Im done ranting now

A flat sales tax, on everything, no exceptions, food, land, cars, everything. This way no one can hide their income, & if you don't want to pay any taxes, don't buy anything. No income tax, no property tax, nothing else.

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D2Cat · Feb 13, 2019

Oh Boz, you're just too idealistic! Think of all the folks you wind up with no job. All the tax service providers gone, software sales gone, accounts....an you won't find any politician wanting such a simple solution.

Any you know they'd be jacking up the percentage rate all the time. So whatever the percentage was to start would soon be out of line.

Lil Foot · Feb 13, 2019

Some years ago, a professor and a grad student from ASU released a study they had done about a flat tax rate. They proved that if everyone (people, corporations, non-profits, etc) paid a flat 10% income tax, with no deductions for anything, that the national debt would be paid off in 7 years, then the tax rate could be reduced to 6%, and the government would still have more usable income than they do now. The IRS could be virtually eliminated, and they also had a plan to tax companies that send their work and income overseas would be taxed at a much higher rate.
I have been preaching this sort of thing for decades, but alas, it will probably never happen.

skeets · Feb 14, 2019

In my old aged addled mine I remember reading someplace, that the USSR after it fell, imposed a flat tax, and the money went through the roof for the party. People began to have disposable income and life has never been better.

AKguy09 · Feb 15, 2019

Most people are so over extended on credit these days they don't realize the lesser taxes they are paying weekly and monthly, they only realize that they are getting less of a refund then last year. A systemic problem with society i believe

RCW · Feb 15, 2019

AKguy09 said:
they only realize that they are getting less of a refund then last year. A systemic problem with society i believe

You bet. As you others said, amount of refund is not an issue. How folks deal with withholdings is a personal preference .

The bottom line is line 15 of the 1040: "Total Tax." My bottom line was -9% from last year.

I'm okay with that!

New York State has a habit of "giving" refunds of tax dollars for child tax credits and property tax relief. Oddly, the checks come out just before Election Day....all malarkey...DON'T TAKE MY MONEY TO BEGIN WITH....can you say legally buying votes?!?!

Got one for $14 once...bet it cost them $25 just to write the check....never cashed it...

armylifer · Feb 15, 2019

If any of you are interested in seeing where a lot of fraud and wast is coming from watch this YouTube video. It is 6 minutes and 48 seconds long and it may cause you to get angry enough to call your congress person about it.

https://www.youtube.com/watch?v=0gwWaKkV6RM&feature=youtu.be

AllDodge · Feb 15, 2019

Don't agree with the law, but the vid just shows them following the law, only way to change it, is to change the law

Just like Warren Buffet, and all other million and billionaire's pay less in taxes then about anyone making less then $40K, they are just following the law.

Daren Todd · Feb 16, 2019

The new reforms actually worked out better for my wife and I this year. Made a few bucks more, but instead of being taxed at 25 percent, we were only taxed at 23 percent. With the higher standard deduction as well. So our return was a little higher this years compared to last year.

Federal Tax Reform

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