Taxes?

Thread has become too political. I was hoping it would not.
Thread closed.
Barney

Desert Captain wrote:

westernrvparkowner wrote:

Ralph Cramden wrote:

Desert Captain wrote:
Just did my taxes {Turbo Tax} and got the rude surprise that awaits most folks who have yet to do so...

We always take the standard deduction which has been nearly doubled to $24,000. Our income and estimated tax payments were virtually the same as last year. I was expecting a nice refund given the increase in the standard deduction but... Our taxes went up!

Turbo Tax always takes me through a hundred questions in a search to see if we should itemize {we never do} and the standard deduction is always our best path. In completing these question TT showed that for the first time the interest on our RV loan is no longer deductible, it always had been in the past.

So with a taxable income of $42,000 and the new standard deduction of $24,000 we paid more then ever before. Looks like they nearly doubled my taxes... Arrrrg!

:M

Check your math.

Agreed. If your income has not changed and you have always taken the standard deduction in the past, your taxes will decrease due to the simple math of higher deductions and the fact that rates decreased across the board.
There are many people finding they are receiving lower refunds this year. But that is due to the fact the withholding tables were adjusted to reflect the new tax rates. Less money was withheld from their checks, so there is smaller refunds even though their actual taxes decreased. It is amazing the number of people who equate the size of their refund to the amount of taxes paid. It has been said that the worst legislation ever was the laws that instituted withholding by employers. Until that time, you had to actually pay your taxes, so you actually saw how much it was. Now many people have no concept of how much taxes they actually pay since they never see the money and they are so out of touch they don't realize those amounts withheld out of their checks is actually money they earned and are now paying directly to the treasury.

There is absolutely nothing wrong with my math, the numbers I posted are spot on. Nothing is withheld from our social security or my brides retirement so there is no change there. We make quarterly estimated tax payments to both the Fed and state. These payments have not changed in years and we normally come close to breaking even which is my intent.

The only way I end up paying more despite the smokescreen of a much larger {an extra $11,000} standard deduction is the fact that this so called tax relief for the middle class is a scam. My taxes nearly doubled and we are barely middle class.

:M

Re-read your post and if it is factually correct the issue is you made around $3200 more gross income in 2018 than you did in 2017. You said your taxable income in 2018 was the same as your taxable income in 2018. Taxable income is the amount AFTER you have taken your deductions, whether it is the standard deduction or itemized deductions. You use the standard deduction. For a couple the total of the standard deduction in 2017 (standard deduction plus personal exemptions) was $20,800. In 2018 the personal exemption was eliminated and the standard deduction increased to $24000. To have a taxable income of $42000 you would have earned $62,800 in 2017 and $66,000 in 2018. So yes, it is likely your taxes did increase since your income increased. If you are self-employed they would have increased substantially, since you are liable not only for the income taxes on that additional income, but also the so-called double FICA for Social Security and Medicare.
EDIT: Checked the tax tables. For married filing Jointly, the taxes for 2017 on a taxable income of $42000 is $5371 For 2018 it is $4662. That is a decrease in actual taxes of $709. There is something wrong with your calculations if you actually have a taxable income of $42,000 in both 2017 and 2018 and your calculations show you have an increase in Federal income taxes.

tomman58 wrote:
USA TODAY: Tax refunds are coming in smaller versus last year, the Internal Revenue Service reported.

The average tax refund issued so far fell to $1,865, down 8.4 percent from $2,035 at the same time last year, according to IRS statistics. The number of refunds issued also dropped by 24.3 percent.

Overall, the number of returns the agency has processed so far is off 25.8 percent versus the same time last year. The IRS has also received 12.4 percent fewer returns from taxpayers. The earliest taxpayers could file returns was Jan. 28. In most states, the last day you can file is April 15.

Looks like the tax cut surprise is on time. Ha

In case you missed it, tax refunds have NOTHING to do with whether or not you got a tax cut. Part of the tax reform was an adjustment to the employers withholding schedule. If you made no changes to your W-4 on file with your employer you now have less withheld from your paycheck. Your take home pay is higher every pay period, more than offsetting the decrease in your refund. You do realize your refund is actually the IRS returning money you OVERPAID on your taxes, basically an interest free loan you gave the government?

USA TODAY: Tax refunds are coming in smaller versus last year, the Internal Revenue Service reported.

The average tax refund issued so far fell to $1,865, down 8.4 percent from $2,035 at the same time last year, according to IRS statistics. The number of refunds issued also dropped by 24.3 percent.

Overall, the number of returns the agency has processed so far is off 25.8 percent versus the same time last year. The IRS has also received 12.4 percent fewer returns from taxpayers. The earliest taxpayers could file returns was Jan. 28. In most states, the last day you can file is April 15.

Looks like the tax cut surprise is on time. Ha

westernrvparkowner wrote:

Ralph Cramden wrote:

Desert Captain wrote:
Just did my taxes {Turbo Tax} and got the rude surprise that awaits most folks who have yet to do so...

We always take the standard deduction which has been nearly doubled to $24,000. Our income and estimated tax payments were virtually the same as last year. I was expecting a nice refund given the increase in the standard deduction but... Our taxes went up!

Turbo Tax always takes me through a hundred questions in a search to see if we should itemize {we never do} and the standard deduction is always our best path. In completing these question TT showed that for the first time the interest on our RV loan is no longer deductible, it always had been in the past.

So with a taxable income of $42,000 and the new standard deduction of $24,000 we paid more then ever before. Looks like they nearly doubled my taxes... Arrrrg!

:M

Check your math.

Agreed. If your income has not changed and you have always taken the standard deduction in the past, your taxes will decrease due to the simple math of higher deductions and the fact that rates decreased across the board.
There are many people finding they are receiving lower refunds this year. But that is due to the fact the withholding tables were adjusted to reflect the new tax rates. Less money was withheld from their checks, so there is smaller refunds even though their actual taxes decreased. It is amazing the number of people who equate the size of their refund to the amount of taxes paid. It has been said that the worst legislation ever was the laws that instituted withholding by employers. Until that time, you had to actually pay your taxes, so you actually saw how much it was. Now many people have no concept of how much taxes they actually pay since they never see the money and they are so out of touch they don't realize those amounts withheld out of their checks is actually money they earned and are now paying directly to the treasury.

There is absolutely nothing wrong with my math, the numbers I posted are spot on. Nothing is withheld from our social security or my brides retirement so there is no change there. We make quarterly estimated tax payments to both the Fed and state. These payments have not changed in years and we normally come close to breaking even which is my intent.

The only way I end up paying more despite the smokescreen of a much larger {an extra $11,000} standard deduction is the fact that this so called tax relief for the middle class is a scam. My taxes nearly doubled and we are barely middle class.

:M

All this discussion is the reason we need a flat consumption tax in this country!! The laws are so ridiculous!! Even "tax professionals" can't figure it out!! With a consumption tax, EVERYONE pays their "fair share"...even drug dealers and illegals!!

Ok, sorry...rant over.

Mark

ItsyRV wrote:

babock wrote:
In 2018, only RVs with motors can be considered a second home for mortgage interest purposes.

May not be true. The section of the code that states that turns out to be in the business section for deductions. Unless the RV is owned by a business that section doesn't seem to apply to personal owned RV's. The article that originally caused the confusion has been corrected by many newer articles from tax professionals.

Yep...appears you are correct. I was talking to a friend of mine who owns a large accounting company a few months ago and even he wasn't sure.

The standard deduction for married couples did increase from $12,700 to $24,000 but you lost 2 personal exemptions of $4050 each so that supposed windfall for the increase in the standard deduction kinda got offset. If you itemized before and don't itemize this time, you very well may pay more tax now.

Ralph Cramden wrote:

Desert Captain wrote:
Just did my taxes {Turbo Tax} and got the rude surprise that awaits most folks who have yet to do so...

We always take the standard deduction which has been nearly doubled to $24,000. Our income and estimated tax payments were virtually the same as last year. I was expecting a nice refund given the increase in the standard deduction but... Our taxes went up!

Turbo Tax always takes me through a hundred questions in a search to see if we should itemize {we never do} and the standard deduction is always our best path. In completing these question TT showed that for the first time the interest on our RV loan is no longer deductible, it always had been in the past.

So with a taxable income of $42,000 and the new standard deduction of $24,000 we paid more then ever before. Looks like they nearly doubled my taxes... Arrrrg!

:M

Check your math.

Agreed. If your income has not changed and you have always taken the standard deduction in the past, your taxes will decrease due to the simple math of higher deductions and the fact that rates decreased across the board.
There are many people finding they are receiving lower refunds this year. But that is due to the fact the withholding tables were adjusted to reflect the new tax rates. Less money was withheld from their checks, so there is smaller refunds even though their actual taxes decreased. It is amazing the number of people who equate the size of their refund to the amount of taxes paid. It has been said that the worst legislation ever was the laws that instituted withholding by employers. Until that time, you had to actually pay your taxes, so you actually saw how much it was. Now many people have no concept of how much taxes they actually pay since they never see the money and they are so out of touch they don't realize those amounts withheld out of their checks is actually money they earned and are now paying directly to the treasury.

This is not a good venue to get tax advise.