General Discussion

still_one

(98,883 posts)

42. It will impact the 30%, (40 million people), who currently itemize deductions the most, but the

Mon Jan 1, 2018, 12:50 PM

Jan 2018

elimination of the personal exemption applies to everybody, and it means the extra 4050 for single, or 8100 for joint needs to be subtracted from new standard deduction to determine the actual amount that will be subtracted from their AGI, to determine the taxable income.

With the right hand they are giving people an increased standard deduction, and with the left hand they are minimizing the impact of that increased standard deduction by eliminating the personal exemption.

The estimates for a couple who currently make around 25-75K a year who are married with no children will amount to about 520 dollar tax cut.

For that same couple who make around 25-75K a year who are married with no children who currently itemize deductions, if they live in a high tax state will have a 120 dollar tax increase, and if they don't live in a high tax state, there will be no tax benefit realized.

https://www.nytimes.com/interactive/2017/12/17/upshot/tax-calculator.html

and that refund will be quickly eaten up with increases in housing, energy, and medical expenses

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Why the new 12000 dollar standard deduction for single, and 24000 for joint in the new tax plan is [View all] still_one Dec 2017 OP

The deficits will balloon out of control next year. roamer65 Dec 2017 #1

yea and guess who will be blamed and bluestarone Dec 2017 #2

If the blue tsunami actually happens in the 2018 elections... TheDebbieDee Dec 2017 #19

No. They will impose new taxes on the very rich. Sophia4 Dec 2017 #25

But Dems can only make that happen if they veto-proof majorities TheDebbieDee Dec 2017 #30

Right! Sophia4 Dec 2017 #33

They must pass it and force a veto. n/t rainin Jan 2018 #53

Depends - if they pass something that gains some Republican votes ... karynnj Jan 2018 #57

No they wont have to. David__77 Jan 2018 #54

It will start, but I don't think it will be noticed until two years into this fiasco. still_one Dec 2017 #3

I'm expecting to pay more. Be surprised if I don't. lindysalsagal Dec 2017 #4

Same here. I would be surprised if I break even still_one Dec 2017 #5

Exactly. Also of note: LuckyCharms Dec 2017 #6

Absolutely. While I believe most people who contribute to charity will continue to do so, I also still_one Dec 2017 #7

Yep! LuckyCharms Dec 2017 #10

I do both, but either or is good if one can afford it still_one Dec 2017 #12

What they most need, though, are cash donations -- and they are certain to go down. n/t pnwmom Dec 2017 #18

Cascading cruelty. KY_EnviroGuy Dec 2017 #23

The end of the estate tax is what will really, really hurt charities. Sophia4 Dec 2017 #27

Goes back to 10% in 2 years elehhhhna Jan 2018 #58

and Koches will deduct contributions to their political groups sharedvalues Dec 2017 #8

Call out the trumpers when they lie..offer remedial math dembotoz Dec 2017 #9

And the elderly and legally blind used to get a further exemption marybourg Dec 2017 #11

This message was self-deleted by its author still_one Dec 2017 #13

I didn't know that the Blind exemption went away underpants Dec 2017 #28

They were retained in the final bill. nitpicker Jan 2018 #34

No. That's a tack-on to the standard deduction. marybourg Jan 2018 #35

It should work the same way it does now. Ms. Toad Jan 2018 #47

No they have not. Ms. Toad Jan 2018 #46

Is this for 2017 returns, or for 2018? bucolic_frolic Dec 2017 #14

For 2018 returns filed in early 2019. roamer65 Dec 2017 #15

Tax year 2018, so many taxpayers won't realize affects until they file returns in 2019 wishstar Dec 2017 #16

Yep, so they won't feel the effects yet while voting in the 2018 midterms. SunSeeker Dec 2017 #22

Anyone who has their taxes done by a preparer will know in advance. roamer65 Jan 2018 #67

Not true last year the Standard Deduction was $6300 for a single doc03 Dec 2017 #17

the senior tax exemption deancr Dec 2017 #21

It used to be in the exemption, marybourg Jan 2018 #36

I was referring deancr Jan 2018 #37

If you itemize, you don't get it, because it's now in the standard deduction only. marybourg Jan 2018 #40

Are you sure about that? sl8 Jan 2018 #41

You're getting confused between "exemption" and "deduction"' marybourg Jan 2018 #45

No, the exemptions are line 6a-d (and line 42) sl8 Jan 2018 #49

Ha! This is embarrassing. It USED to be an exemption. marybourg Jan 2018 #61

No worries, it happens to the best of us. :) n/t sl8 Jan 2018 #64

You have about the right era - the information I have suggests Reagan changed it, Ms. Toad Jan 2018 #65

And in my mind it's been an "exemption" all these years. marybourg Jan 2018 #66

I still have a box with the documentation of all of investments we made in our home Ms. Toad Jan 2018 #68

A little trip down memory lane ... sl8 Jan 2018 #69

It's sick, but I do too. marybourg Jan 2018 #70

You are the one getting confused. Ms. Toad Jan 2018 #50

Yes, you're absolutely correct. Please see my post #61. marybourg Jan 2018 #62

It has always been in the deduction portion of the tax return. Ms. Toad Jan 2018 #48

You are right, but what I was trying to say was that the elimination of the personal exemption means still_one Jan 2018 #43

You have to remember Turbineguy Dec 2017 #20

K & R. Good thoughts. KY_EnviroGuy Dec 2017 #24

Oh, no. This is very upsetting. This is going to hurt a lot of working people. Honeycombe8 Dec 2017 #26

Less people itemizing also will really effect charitable donations underpants Dec 2017 #29

I suspect they will reduce the amount they usually contribute, but I would like to think they will still_one Dec 2017 #31

Yes there are regular dedicated donors underpants Dec 2017 #32

including to churches greymattermom Jan 2018 #51

Yes. underpants Jan 2018 #63

Churches will be hurt. elehhhhna Jan 2018 #59

the church industry is ready for a downsizing anyway snooper2 Jan 2018 #71

It ought to be at least as high as the poverty level treestar Jan 2018 #38

I dont think its going to hit as many people as you think Lee-Lee Jan 2018 #39

It will impact the 30%, (40 million people), who currently itemize deductions the most, but the still_one Jan 2018 #42

If you take unreimbursed businesses expenes, poor gone. elehhhhna Jan 2018 #60

Yep romana Jan 2018 #44

So, just checking greymattermom Jan 2018 #52

The child tax credit is also doubling to $2000 although it is not all refundable ... VMA131Marine Jan 2018 #55

I hate to say it, but I think I'll end up sbstantially better off under the new rules VMA131Marine Jan 2018 #56