Tax time

[babock]

Originally Posted by JayArras

In my view, paying the IRS at tax time is a good thing. It means you haven't been giving the feds an interest-free loan all year.

Exactly. I actually hate when I get a refund. Means I screwed up my withholding amount.

[rockfordroo]

REBATE ≠ taxes paid.

Compare Line 63 of your 2017 Form 1040 to Line 15 of your 2018 Form 1040.

This will show you any change in your taxes ASSUMING everything else (income, etc) remains essentially the same.

[upflying]

I got a smaller refund because I had less withholding taken out of my checks. Win-win.

[Scrapper]

While I was working we always had to pay some to federal, but our refund from state covered it with some left over. I retired in 2015 and got approximately $200 back between federal and state, 2016 we owed state less than $100 but covered that from the federal refund. For 2017 we owed both fed and state around $200 each. We owed more than $400 to each for 2018. Seems like every time we adjust it they want more.
DW is still working 40 hr/wk and I am getting SS plus money from my IRA to help cover what I lost by retiring.

[ForestWalker]

For those here who want a $10,000 write off on your taxes. Loan me $10,000 and at the end of the year write it off as a "bad" loan.

[rk06382]

I am surprised nobody mentioned the 30% Solar Tax credits for 2018. I received 30% back for every dollar I spent on the solar install. IE: Solar panels, Samlex Inverter/Charger, Battle Born batteries, Victron BMV & MPPT, parts & Labor.

My effective tax rate was 2.65%.

[spock123]

We only have retirement income so I paid less tax for 18 than 17. Next year no tax at all. I love not working.

[SailorSam20500]

Invested some serious brain effort early last year. Ended up with small refunds from state and fed. Effort was primarily directed at making sure we didn't have to pay penalties for under-withholding.

[SailorSam20500]

Originally Posted by ForestWalker

For those here who want a $10,000 write off on your taxes. Loan me $10,000 and at the end of the year write it off as a "bad" loan.

But that gives you an addition $10 of income!!!

[Oaklevel]

This really means nothing, we got back more in refund and paid in less for withholding taxes.

We also live in a poor area, for charging local property taxes $800 for the house and about $1000 on the vehicles (the camper is about $500 of that). . We do pay state income tax which did not change.

[NXR]

Originally Posted by spock123

We only have retirement income so I paid less tax for 18 than 17. Next year no tax at all. I love not working.

That's my plan for later this year, not working.

I've always claimed 0 exemptions on the federal and state W-4 forms and convinced my kids to do the same. The refunds have not been enormous for any of us and have shielded us from having to pay. The investment income goes in before tax and just sits there so the zero withholding exemptions provided "cover" for that.

In 2017 we paid a 18% federal rate, a 5% state rate and a 3% city income tax rate. For 2018 the federal rate dropped to 12.5% on similar income.

For planning for my retired tax rate I started a new TurboTax return and entered in the guesstimated income based on current expenses and a fudge factor. For my first fully retired year TurboTax is estimating my federal at 8.5% and state at 2.5% and there no longer is a city income tax because that's only on earned income. Our financial guy said he sees most of his retired clients pay around an 8% federal tax rate so it crosschecks OK.

[Winger1]

Originally Posted by XenoRev

I've heard this a lot. I'm self employed and file quarterlies. My state tax (MI, one of the highest in the nation) was spot on, and I recieved a notable refund (camping dollars)
If you paid in, did you have less withholding this year? Meaning more $ in your pocket each paycheck but not enough at the IRS come tax time?

Then thats not a tax "cut", its a tax delay

I claimed zero all year, got about $10 more per check. Thats $520. My tax debt, first time I owed money in years was $4,200 due to the changes.

Meanwhile, GE, Amazon and other corporations paid ZERO

[wahoonc]

The good Lord provideth and the government taketh away...

We planned our withholdings accordingly and looks like we will owe a bit at the state level and get a small amount back from the federal.

Aaron

[TheWolfPaq82]

For the first time in 20 years, I've had more disposable income this year and instead of cutting Federal and State checks totalling 4 to 5 thousand dollars every year, Our total Fed/State payout this year was $500.00 I'm a Happy Camper this year.

[TheWolfPaq82]

"Meanwhile, GE, Amazon and other corporations paid ZERO"

Sorry....but that is absolutely NOT TRUE. Every corp pays taxes in one way or another. The ZERO claim has been media hype for several years now.

[Jfkmk]

Originally Posted by NJKris

I'm paying this year. Luckily the state refund offsets the Fed debt. Deducting 9k property tax bill and state income tax used to be a huge benefit. Turbotax allowed me to hold off on paying until 4/15, at which time it automatically will be deducted from my checking account.

I love how Murphy was crying about how the new tax laws are going to hurt New Jerseyans. Meanwhile we pay ridiculous property taxes and he’s chomping at the bit to impose new and higher taxes. I guess the only ones who should hurt New Jersey Tax payers is the New Jersey government.

[Winger1]

Originally Posted by TheWolfPaq82

"Meanwhile, GE, Amazon and other corporations paid ZERO"

Sorry....but that is absolutely NOT TRUE. Every corp pays taxes in one way or another. The ZERO claim has been media hype for several years now.

Sorry, go check.

[MR.M]

Originally Posted by jtaylor1920

Yep, a big swing for us this year. We used to get money back and paid big time this year. We’re trying to plan better and put more into our deferred compensation plans.

Nope .so much more this year then last less money out for taxes then previous years . People seem to forget the extra their getting on their checks . Less taken out is going to result in lower returns . Kind of a no brainer

[jtaylor1920]

But the 10’s of thousands or more of the people corporations employ pay lots of taxes.

[jtaylor1920]

Originally Posted by MR.M

Nope .so much more this year then last less money out for taxes then previous years . People seem to forget the extra their getting on their checks . Less taken out is going to result in lower returns . Kind of a no brainer

Um, sure my check went up a few bucks, but not even close to cover what I paid.