"Middle Class" W2 taxpayers with no CTC aged kids will probably see a flat to tax hike via this legislation. The more one itemized, the bigger the tax increase. As in all legislation, there are winners and losers. About 4/5 taxpayers will see a tax cut. IMO, that is missing the bigger picture.
Trump's tax cut....???
- Thread starter MountaineerWV
- Start date
And some knowledgable people would ask me "Lower your Taxable Income by contributing more to 401K" or things such as that which used to be known as "front page planning". Me personally, my wife and I max out our 401k contributions so that isn't an option with personal finance decisions. About the only thing I can do is change my investments. That would cause a big tax bill in the year I do it and will help with taxes in the future. However, that also changes my wealth planning. And I am where I am financially due to wealth planning and I will continue along those lines. But I'm not bitching about the taxes I pay on Investment Income and I actually am a proponent of increasing taxes along those lines.
Here is an interesting way to see how your taxes are impacted from 2017 to 2018. It isn't fully 100% accurate due to things such as if the new tax law didn't take effect, the IRS adjusts the tax tables every year and some tax code provisions expire and change based on various legislation from the past.
But take your 2018 financial information and if you have tax software or a Coop to do it for you, put in your data into 2017 software. Check out what it spits out. Compare to your 2018 tax results. Again, not 100% accurate to the tax legislation but I'm guessing it is 95% relevant
But take your 2018 financial information and if you have tax software or a Coop to do it for you, put in your data into 2017 software. Check out what it spits out. Compare to your 2018 tax results. Again, not 100% accurate to the tax legislation but I'm guessing it is 95% relevant
I'm as nervous as a ***** in church. I haven't done my taxes yet, been too busy. Looks like I'm going to have to try to carve out some time this weekend to get them done. My itemized deductions were double the standard deduction last year. I'm hoping, since they doubled the standard deduction (at least that is what I heard) that I "break even."
unless you had more withheld than the previous year, you will most likely owe. I had an additional $100 per week withheld for federal and broke even
That HEAVILY depends on tax bracket, filing status and dependents. Also, it's possible (likely?) that you had an additional $100 held out of your checks, but your total withholdings for the year were down.
Quick follow up, I recognize the change to the tax structure in the legislation affected this with you. But where I’m confused and back to my original question, how is what you explained not a result of your tax strategy in relation to the new structure? And you’ve found no changes you can make to what you do that would benefit you?
Based on some comments you’ve made in the past, I assumed you’re financially able to effectively allocate your assets while maxing out your 401k.
My family in which I can claim them as an Exemption under past year's and code to losing that this year is not something I can control. My Itemized Deductions are also pretty much fixed costs except for my voluntary contributions to nonprofit entities. I can't affect the State taxes I pay and I barely pay any mortgage interest and that is going down every year so nothing I can do there that is a smart tax and wealth strategy. So the tax strategy that I can affect that caused most of my increase tax bill is 100% out of my hands; it is all due to the tax legislation.
Investments in 401k's are tax deferred into the future. Have no clue what this comment has to do with my 2018 tax bill.
Ok, so why aren’t you starting real estate businesses, a farm, charter fishing business or something along those lines? Would those things not also be considered tax strategy? At least it is in my house.
That just isn't what is happening. Those "investments" are largely corporate level bonuses and stock buybacks. And jobs? We've had jobs. Unemployment was at 4.8% when Trump took office, and now it is at 4.0. We have had job growth for a decade almost. Did we need a stimulus for jobs?
I don't want or need a side business. Why would I? I enjoy my life as it is and have more money than I know what to do with. Hopefully, 30 years from now I can make other's lives better with my excess by giving a lot of it away.
And again, I'm not bitching at all about my tax bill. I'm talking honestly about it as an example of what others might be feeling.
You’re saying corporations aren’t doing IRAD projects? Wage growth isn’t up? Etc?
Congratulations on your success.
We can agree to disagree on the latter. I’d personally rather my money be used for my family’s interests than spent on a study of the African snail darter’s affect on the migrational dynamics of the Brazilian honeybee polenation processes.
I dont think they are growing particularly well at all, especially when you adjust for inflation.
There it is. Hahaha
You sound like Hannity trying to throw shade on Obama’s recovery.
The only issue I had with Obama’s recovery was that it was slow growth, but it was steady. You’re barking up the wrong tree.
