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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, 07:56 PM
  #61  
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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.
thatís unfair in this environment. People file a W4 annually. If the calculations are amended mid year, thatís a problem
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Old 03-14-2019, 08:16 PM
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My wife finally said something to me in December about how she thought the deductions from her check seemed low. We started doing some digging and it turns they were.. by a lot. Between taxes owed on some game show winnings and her shortage we were on the hook for just south of 15K... that one hurt!!
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Old 03-14-2019, 09:06 PM
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Originally Posted by gfretwell View Post
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)
Originally Posted by ChrisW21 View Post
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?
I wish I was better with words and memory but this is precisely what the conversation was about. The rule changes actually benefit the lower middle class as opposed just the "rich". Again, the reason I pay a cpa is because I can not match his expertise and am in no way qualified in his craft. However I have benefited from his expertise and integrity in his craft.

The lower classes that have benefited may not understand how they have or that they have benefited or the difference between gross, net and monthly verses yearly and cash flow. And thus they are easily exploited by those that lust for power. Extreme examples are currently playing out and have played out in history.
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Old 03-14-2019, 09:33 PM
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I have mentioned this before but any good CPA can run both your 2017 and 2018 taxes using the rates and deductions before and after the cuts and give you actual numbers. Unless you're stuck in a blue state with ridiculous taxes the saving will be significant. If your SALT hurts it going to be because your SALT taxes aren't being subsidized by the rest of us. Live with the issues you have created.
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Old 03-15-2019, 01:15 AM
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We live in a low tax state. So the new law essentially curbs the low tax states subsidies of the high tax states, read northeast and West Coast, at the federal level. Comparing apples to apples my overall tax rate went down and since I am not a fan of giving the government an interest free loan I manage my withholding accordingly. It seems the crying is coming from folks who use withholding as a savings device for a lump sum distribution from the government.
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Old 03-15-2019, 01:53 AM
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Originally Posted by 5tmorris View Post
It seems the crying is coming from folks who use withholding as a savings device for a lump sum distribution from the government.
The crying is from being caught off guard by a big tax bill at the end of the year. I have always been around break even unless I did something out of the ordinary. This year I owe 7500 which I wasnt expecting. I looked at my return from last year and I am paying around the same but less was withheld during the year. I do my own taxes, thought less withholdings was the tax cut and was hit by SALT. I know now to plan for next year but sucks it threw a curve in my financial planning for this year.
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Old 03-15-2019, 03:48 AM
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Originally Posted by mikefloyd View Post
I have mentioned this before but any good CPA can run both your 2017 and 2018 taxes using the rates and deductions before and after the cuts and give you actual numbers. Unless you're stuck in a blue state with ridiculous taxes the saving will be significant. If your SALT hurts it going to be because your SALT taxes aren't being subsidized by the rest of us. Live with the issues you have created.
I live in NH. No SALT income taxes. High real estate taxes as a result of no state or sales taxes.
I work in Mass. A high income tax state.

The perfect storm. But I didnít create shit.
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Old 03-15-2019, 03:55 AM
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Just wondering...What income level in NY is considered MIDDLE CLASS? Husband and wife working. I curious what some think, because I sure am not damn rich and paid back all that was given to me in my check and some.
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Old 03-15-2019, 04:09 AM
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Originally Posted by mnm99 View Post
Just wondering...What income level in NY is considered MIDDLE CLASS? Husband and wife working. I curious what some think, because I sure am not damn rich and paid back all that was given to me in my check and some.
Politicians donít define middle class, for good reason.
Itís fluid so as to allow for future screw overs.
I think it begins at homeownership. From there who knows.
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Old 03-15-2019, 04:18 AM
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My federal went down significantly. State went way up significantly. The state was due to an issue with their formulations last year.
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Old 03-15-2019, 04:41 AM
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Income up slightly from last year.
Last year had 47K in deductions, this year 24K.
The difference in fed tax paid was about 1200 less this year.
The end result was we paid about 3800 more in taxes.
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Old 03-15-2019, 05:09 AM
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Those who may have come out worst would tend to be employees with business expenses no longer allowed and those with high SALT deductions. If your on the lower end of the income scale you were likely taking a standard deduction with personal exemptions or the standard deduction would have been close to your combined deductions. You lost exemptions but doubled your standard deduction and also doubled the child credit. You are also in marginally lower tax brackets/rates.

I have not filed yet but did some quick calls and my family will pay less federally. Higher income with two kids but lower brackets at expanded income levels, essentially no amt (as state tax was the culprit in the past) and no employee expenses as we are both self employed / receive a k1. We do not receive a pass through deduction unfortunately.
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Old 03-15-2019, 05:32 AM
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Originally Posted by STEELA View Post


that’s unfair in this environment. People file a W4 annually. If the calculations are amended mid year, that’s a problem
My point was most people base their delight or anger based on what they paid or got back the prior tax year without really understanding what happens to their money. I get it. The tax code is a shame but the majority of people don't have the slightest concept of adjusted gross income. Someone made the point earlier, folks who got back 5k last year and get back 4k this year are pissed even though they paid less in taxes overall.
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Old 03-15-2019, 05:40 AM
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Originally Posted by fbsaltfly View Post
The crying is from being caught off guard by a big tax bill at the end of the year. I have always been around break even unless I did something out of the ordinary. This year I owe 7500 which I wasnt expecting. I looked at my return from last year and I am paying around the same but less was withheld during the year. I do my own taxes, thought less withholdings was the tax cut and was hit by SALT. I know now to plan for next year but sucks it threw a curve in my financial planning for this year.
If you're not able to project what your withholding should be are you qualified to do your own taxes?
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Old 03-15-2019, 05:47 AM
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Federal went down, paid less from each paycheck... all good.

I deal with two states and a local tax, less deductions so these all went up a bit.
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Old 03-15-2019, 05:51 AM
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Originally Posted by STEELA View Post


I live in NH. No SALT income taxes. High real estate taxes as a result of no state or sales taxes.
I work in Mass. A high income tax state.

The perfect storm. But I didnít create shit.
Property tax would be a state and/or local tax.
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Old 03-15-2019, 09:41 AM
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Originally Posted by STEELA View Post


you left out the undisclosed W4 witholding changes that ďnobody knew about. Including employersĒ
thatís where the weekly bonus came from.
Complete shell game
This is exactly what my accountant told me, and she also said that the increase in take home pay for most wasn't noticeable enough to raise concern. Between that, the cap on deductions, and the complete removal of home office/business deductions, she said a lot of folks have been caught off guard.
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Old 03-15-2019, 10:22 AM
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Originally Posted by Commocean View Post
This is exactly what my accountant told me, and she also said that the increase in take home pay for most wasn't noticeable enough to raise concern. Between that, the cap on deductions, and the complete removal of home office/business deductions, she said a lot of folks have been caught off guard.
home office deductible has not been removed, just more limited for use by schedule C for example.
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Old 03-15-2019, 03:11 PM
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Have an S Corp so the 20% write off on pass through income was nice. Paid only 700 more in Fed taxes than I did in 2017 but earned 18,000 more this year. Raised standard deduction also helped. Thank you President Trump
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Old 03-15-2019, 03:29 PM
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Truly curious, why isnt anyone comparing taxes to 2016, 2014, 2012, or anytime before 2017?
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