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Personel exemptions on taxes

Old 02-06-2018, 04:14 PM
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Default Personel exemptions on taxes

Does the new tax bill eliminate all dependents that used to be on our W4 tax form. If so am I only receiving more money in my check because I went from married 2 to basically married 0 due to the lost exemptions. If this is true than I will have to pay more at the end of the year since I got the money during the year. I just saw an article on Yahoo claiming this is the reason. Hoping its fake news.
Old 02-06-2018, 04:21 PM
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Exemptions lost but standard deduction doubled. If you itemize state tax is called at ten grand

Need to figure out what your liability will be under the new law and adjust your w4 accordingly as there will be new rate tables which I believe just came out
Old 02-06-2018, 04:29 PM
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Right.

And going from 2 to 0 on your withholding is LESS money in your check, not more...

https://www.irs.gov/pub/irs-pdf/p15.pdf
Old 02-06-2018, 04:30 PM
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Originally Posted by BACKTOTHESEA View Post
Exemptions lost but standard deduction doubled. If you itemize state tax is called at ten grand

Need to figure out what your liability will be under the new law and adjust your w4 accordingly as there will be new rate tables which I believe just came out
Thanks, thats what I am trying to figure out if we lost the ability to claim dependents on our W4 or not under the fed. Seems to me if we can not claim them do to the larger standard deduction than how can we claim any on our W4.
Old 02-06-2018, 04:37 PM
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I gained about $50 net. Should I adjust my w-4 to get back closer to where I was to lessen the likelihood of paying at the end of the year? Iím setup to be close to break even until the new changes.
Old 02-06-2018, 04:39 PM
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Originally Posted by rickboat View Post
Right.

And going from 2 to 0 on your withholding is LESS money in your check, not more...

https://www.irs.gov/pub/irs-pdf/p15.pdf
You are correct, this is why I use an accountant. Thank you
What had me thinking this was my accountant told me I will get about an extra 2100 in my checks thru the year but next year at tax time I will get about 2000 less in a return for a net difference of plus a 100 bucks.
Old 02-06-2018, 04:53 PM
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Originally Posted by alka2710 View Post
Thanks, thats what I am trying to figure out if we lost the ability to claim dependents on our W4 or not under the fed. Seems to me if we can not claim them do to the larger standard deduction than how can we claim any on our W4.
You still need to claim allowances which provides a deduction against your gross wage before applying the withholding rates. You may have multiple sources of w2 income that overall may require more withholdings, you may be eligible for child credits, you may have itemized deductions that result in a lower liability, etc.
Old 02-06-2018, 04:55 PM
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You want zero refund at tax time, or to owe money if you knew you would owe and planned for it.
Old 02-07-2018, 06:20 PM
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Originally Posted by rickboat View Post
You want zero refund at tax time, or to owe money if you knew you would owe and planned for it.
Not saying it is right or wrong...just saying...
There's a LOT of people who just love a big refund and the bigger the better.
I think more than a few people use it like a savings account and then use the money for a nice vacation
Old 02-07-2018, 06:22 PM
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Originally Posted by chuck34 View Post
Not saying it is right or wrong...just saying...
There's a LOT of people who just love a big refund and the bigger the better.
I think more than a few people use it like a savings account and then use the money for a nice vacation
I'll go ahead and say it's wrong.
Old 02-07-2018, 06:34 PM
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Originally Posted by alka2710 View Post
You are correct, this is why I use an accountant. Thank you
What had me thinking this was my accountant told me I will get about an extra 2100 in my checks thru the year but next year at tax time I will get about 2000 less in a return for a net difference of plus a 100 bucks.
If that's what your accountant told you, you need a new accountant.
Old 02-07-2018, 06:39 PM
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Originally Posted by chuck34 View Post
Not saying it is right or wrong...just saying...
There's a LOT of people who just love a big refund and the bigger the better.
I think more than a few people use it like a savings account and then use the money for a nice vacation
So you're advocating giving Uncle Sam an interest free loan for 12 months?
Old 02-07-2018, 08:49 PM
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Originally Posted by Double tyme View Post
I'll go ahead and say it's wrong.
I disagree

It depends on the individual. Many people are bad at disciplined savings. Extra $3-400 a month deducted out of their check They most likely would spend on crap isnít a bad thing.

Banks paying 1% on savings accounts they arenít loosing some huge windfall in interest.

Getting a $4-5k check back at the end of the year to put towards a large purchase or savings Is a huge deal for some.

Would I let other people hold my money for months interest free? No ....but for others itís the best savings plan they have.
Old 02-08-2018, 05:49 AM
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Originally Posted by alka2710 View Post
Does the new tax bill eliminate all dependents that used to be on our W4 tax form. If so am I only receiving more money in my check because I went from married 2 to basically married 0 due to the lost exemptions. If this is true than I will have to pay more at the end of the year since I got the money during the year. I just saw an article on Yahoo claiming this is the reason. Hoping its fake news.
The tax tables have been revised to reflect the new tax rates and regulations. Unless you have outside income you would be better off having the same number of exemptions on your W-4 that you have on your tax return. If you're at a point where you have a CPA they would give you a recommendation based on facts not on news.
Old 02-08-2018, 06:05 AM
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Originally Posted by bjm9818 View Post
I disagree

It depends on the individual. Many people are bad at disciplined savings. Extra $3-400 a month deducted out of their check They most likely would spend on crap isnít a bad thing.

Banks paying 1% on savings accounts they arenít loosing some huge windfall in interest.

Getting a $4-5k check back at the end of the year to put towards a large purchase or savings Is a huge deal for some.

Would I let other people hold my money for months interest free? No ....but for others itís the best savings plan they have.
Meanwhile paying 22% credit card interest.
Old 02-08-2018, 07:03 AM
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Originally Posted by Marlin308 View Post
So you're advocating giving Uncle Sam an interest free loan for 12 months?
Sure. This always gets me when people get so worked up over "giving the government an interest free loan".... How much do you really think you're giving them?

On a normal year let's call it 6% ROI that you'd make with that money. Most people are talking about a few grand, we'll call it 250/month. Do the math.... You would've made a whole $96.45 off of that 3 grand.....BFD.
Old 02-08-2018, 07:19 AM
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Originally Posted by Marlin308 View Post
So you're advocating giving Uncle Sam an interest free loan for 12 months?
If you read my post, I did not advocate anything. I just said, right or wrong, a lot of people like getting a big refund.

So what if Uncle Sam did pay interest? How much would we get? At today's rates, the typical taxpayer might be able to buy a Big Mac...If he's lucky.
Old 02-08-2018, 07:21 AM
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Originally Posted by crazybeard View Post
Meanwhile paying 22% credit card interest.
Hey my cards. are only 19.99%.

I do have some I make sure to only pay the minimum on. These were larger balance transfers from 2007 that I still have not completely paid off. At 0.9% and 1.9% till they are paid no plans to give them any more than the minimum.
Old 02-08-2018, 07:29 AM
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Originally Posted by crazybeard View Post
Meanwhile paying 22% credit card interest.
I don't have a clue as to what my credit cards charge as I haven't paid any interest on any of them in many years. They could be 50% for all I know.
Old 02-08-2018, 07:30 AM
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Originally Posted by chuck34 View Post
If you read my post, I did not advocate anything. I just said, right or wrong, a lot of people like getting a big refund.

So what if Uncle Sam did pay interest? How much would we get? At today's rates, the typical taxpayer might be able to buy a Big Mac...If he's lucky.
Exactly. Probably less than 100 bucks....

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