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Anyone else blindsided by taxes owed this year?

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Anyone else blindsided by taxes owed this year?

Old 03-14-2019, 06:14 AM
  #41  
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Overall we have an uneducated society who has little if any concept of how taxes work. They have grown dependent on accountants. Many accountants are nothing more than one step below turbo tax.
The tax code is so complicated that "normal" folks don't want the headache. They only compare what they got back last year to this year and start bitching.
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Old 03-14-2019, 07:04 AM
  #42  
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I have to write a $400 check to the government this year which I gladly will do on April 15. I make low 6 figures (very low), I had $5,200 less withheld in taxes in 2018 vs. 2017. My taxable income was $11,000 more in 2018 vs. 2107. In total for 2018 I paid $19 more in taxes vs. 2017. I'd say the tax cuts work, but most people will not take the time, or don't know how to figure all of that out.
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Old 03-14-2019, 07:31 AM
  #43  
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guess it is all in what your situation is. We came out WAY better. But we have 3 kids which that credit doubled and only claim the standard deduction which also doubled plus a few of the allowed extras to that. We made $10K more in 2018 than 2017 but the govt(fed and state combined) kept $1000 LESS than in 2017. We are def not in the upper class being both teachers I would call us squarely in the middle class. My brother being single and his ex having the kid on her filing this year got hit hard though. He makes roughly the same as I do so after the wife's income is added his household(which is just him) made around 45-50K less than mine(wife and me together) yet the govt kept $6000 more of his money than it did ours.

One thing I do see a lot of people saying/complaining about is "i am getting less back on my tax return!" but they are not looking at the actual final liability. Things like they got 5000 back from 2017 but 3000 back from 2018.....except in 2017 they paid in 9000 to get 5000 back so 4000 liability vs 2018 they paid in say 6000 to get 3000 back so liability was 3000. They just can't grasp the fact that they paid 1000 less in actual taxes no matter how many times I explain it all they can see is the smaller return.

not saying that applies to anyone here just what I am seeing folks at work and a couple friends talking about.
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Old 03-14-2019, 09:04 AM
  #44  
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Having many client take their "salaries" into newly formed LLC's/S Corps …. and take business expenses this way … when it can be done....
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Old 03-14-2019, 04:29 PM
  #45  
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Originally Posted by JCC123 View Post
Overall we have an uneducated society who has little if any concept of how taxes work. They have grown dependent on accountants. Many accountants are nothing more than one step below turbo tax.
The tax code is so complicated that "normal" folks don't want the headache. They only compare what they got back last year to this year and start bitching.
Let's say I made exact same amount this year and last year. Last year $30k was withheld, and I got $5k back. This year, $25K was withheld, and I only got $1k back. Now I'm pissed at the smaller refund check, ignoring that I paid less in taxes!
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Old 03-14-2019, 04:39 PM
  #46  
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Originally Posted by Capt Grady 23 Gulfstream View Post
You also got the first 24,000 of income tax free, and less taken out weekly, BUT that was explained from the beginning ie more in the paycheck rather than refund, which is what middle class asked for, not necessarily upper class incomes.

This administration TRULY is aiding the middle class as promised.
you left out the undisclosed W4 witholding changes that “nobody knew about. Including employers”
that’s where the weekly bonus came from.
Complete shell game
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Old 03-14-2019, 04:42 PM
  #47  
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Originally Posted by cheeseman View Post
I have to write a $400 check to the government this year which I gladly will do on April 15. I make low 6 figures (very low), I had $5,200 less withheld in taxes in 2018 vs. 2017. My taxable income was $11,000 more in 2018 vs. 2107. In total for 2018 I paid $19 more in taxes vs. 2017. I'd say the tax cuts work, but most people will not take the time, or don't know how to figure all of that out.

Glad to see some folks GET IT, Like I said NOT a Trump fan but I have spent more time explaining this to folks this year than working it seems. Some just do not get it . This on top of the WARNINGS I GAVE THEM LAST YEAR about Fed WH dropping
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Old 03-14-2019, 04:43 PM
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Originally Posted by ericinmich View Post
Accountant ran 2018 numbers through showing what we would of paid in 2017 vs what we will pay this year, and we will be paying $17k less this year! Winning...

I met with my guy today. Prognoses is good.
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Old 03-14-2019, 04:46 PM
  #49  
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Originally Posted by capt.holiday View Post
Um, yeah.
$175k in income, nearly $60k paid in state and fed, plus $25k in deductions (education and medical)... cpa said I’ll have to pay around $20k..

explain to me why why it costs nearly $100k to earn $175k, because the accountant couldn’t. She response was that what Trump did..

to say im shocked is kind of an understatement.

im also not trusting the cpa... she is a 2nd year tax prep person, my last tax guy died on my in February.
That doesn't sound right. At all.
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Old 03-14-2019, 04:48 PM
  #50  
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From reading these posst, seems and I may be wrong but people over six figures made out and people under got screwed.
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Old 03-14-2019, 04:53 PM
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Originally Posted by Captinlon View Post
From reading these posst, seems and I may be wrong but people over six figures made out and people under got screwed.
From reading some of these posts I think a lot of assumptions are being made.
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Old 03-14-2019, 05:33 PM
  #52  
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We made about $55k and I paid a little over $2k in tax. That is the lowest tax rate I have ever had since I started working full time. (1966 at 19)
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Old 03-14-2019, 07:18 PM
  #53  
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My guy let me in the door and I sat in the waiting area as he finished departing conversation with his previous clients. They were retired, blah blah... the convo shifted to the new laws and who they benefited. The client mentioned that he understood the lower middle class to be left out of the upside to the law updates. My cpa countered and explained that the changes really did benefit the middle classes.
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Old 03-14-2019, 07:25 PM
  #54  
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Originally Posted by tprice View Post
Yep it has been a VERY interesting year in the income tax business, I TRIED warning ALL clients. Problem was the damn lowering of Fed WH rates.
Exactly what my accountant said when she called to warn me what we are facing.
Tax rates went down. BUT withholding rates went down as well. Est $25k less withheld for one of us, another $12k for the other between the wif and I.
On the positive side, I didn't loan Uncle Sam a lot of $ interest free last year.....
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Old 03-14-2019, 07:25 PM
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Wife and I paid about 7000 less to the fed this year than last year and made about 5000 more than last year. We ended up owing 2000 more overall around 5000 less in federal taxes this year. No AMT for us for the first time in a long time
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Old 03-14-2019, 07:40 PM
  #56  
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Originally Posted by alka2710 View Post
Wife and I paid about 7000 less to the fed this year than last year and made about 5000 more than last year. We ended up owing 2000 more overall around 5000 less in federal taxes this year. No AMT for us for the first time in a long time
you know the rules....
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Old 03-14-2019, 07:42 PM
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Made slightly more money this year. Had less taken out, lost a child deduction. Got less back this year from fed and near broke even with state. However in the long run I came out $1000’s ahead of last year at then end, even with the lost child credit. Some people just don’t get it I guess or don’t pay attention to all the numbers. One girl I work with was bitching because she wasn’t going to be able to itemize her home. She was only looking at just over last years standard deduction anyway. Now she gets 18000 off the top, way more than she could itemized!!
I wonder if some people are playing the claiming more dependents on their checks game hoping to break even. Problem is now they aren’t paying near enough in and end up owing a lot. I had thought of going to 1, glad I didn’t as I would’ve owed big to state and maybe broke even to FEDs.
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Old 03-14-2019, 07:45 PM
  #58  
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Originally Posted by r_ventura_23 View Post
you know the rules....
I never really noticed you until recently. Everyone seems to be right. You're about as annoying as they come.
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Old 03-14-2019, 07:46 PM
  #59  
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I wouldn't say I was blindsided but my two side businesses finally turned a profit. I usually break even in taxes, this year looks like I'm going to write a check for just North of $3k...I guess that's a good problem to have.
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Old 03-14-2019, 07:54 PM
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Originally Posted by fijon View Post
My guy let me in the door and I sat in the waiting area as he finished departing conversation with his previous clients. They were retired, blah blah... the convo shifted to the new laws and who they benefited. The client mentioned that he understood the lower middle class to be left out of the upside to the law updates. My cpa countered and explained that the changes really did benefit the middle classes.
Being a boating website, we're obviously swayed more towards the middle to higher side of the income brackets. I'm wondering how the middle-lower to lower income families made out.

And don't try to play me off as some lefty preaching for welfare! I think it's a fair question.

Without getting political (a lot to ask, I know), does anyone have insight on this?
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