General Discussion

customerserviceguy

(25,406 posts)

99. Things went very different with the new tax law

Sat Feb 9, 2019, 04:22 PM

Feb 2019

than they did during the Eighties when I had a tax practice. Yes, there were significant law changes, but the only provisions made retroactive to the first of the year were ones that would give tax breaks to people. This time, there was very little time between enactment of the law and the end of the year, so it made planning for an adverse outcome quite tricky indeed.

I'm just plain-jane with my taxes, standard deduction, and that's it. I took out only enough to stay within the first two tax brackets from my IRA this last year, and the 10% I had withheld covered the taxes almost exactly. Yes, the new higher standard deduction helped me. I will have a modest pension kick in at the end of 2020, but even so, I probably won't have to pay Federal or even State income taxes for the rest of my life.

Unless one of those lottery tickets pays out!

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I'm a CPA with a small tax practice [View all] ALBliberal Feb 2019 OP

Somehow I knew Fascist America Liberal In Texas Feb 2019 #1

It's gonna be tough, and I have no doubt my Republican... TreasonousBastard Feb 2019 #2

I'm so sorry, ALBliberal! Cha Feb 2019 #3

I think the biggie is mercuryblues Feb 2019 #17

Thanks for the explanation, mercuryblues! Cha Feb 2019 #18

We filed an extension for ours. mercuryblues Feb 2019 #21

Don't you have to pay your estimated tax anyway when you file an extension? I had to do that in the BamaRefugee Feb 2019 #94

Filing Tax Extension + Impact on Higher Income Individual Indykatie Feb 2019 #114

yes mercuryblues Feb 2019 #132

I file for an extension every year because I'm a freelancer and the timing for funding my IRA Neema Feb 2019 #113

And now we know why So many 'pubs left the House. Norbert Feb 2019 #110

Put simply, watoos Feb 2019 #32

Yes mercuryblues Feb 2019 #39

Yes, a loan w/ a high interest rate. You are pretty well paying for it totally. This points out... SWBTATTReg Feb 2019 #41

I get a pension, watoos Feb 2019 #44

Can they legally do that? BigmanPigman Feb 2019 #105

So, lower withholding lower refund. pangaia Feb 2019 #115

The problem is that for many people, janx Feb 2019 #122

yeah, the whole thing was and is so freakin' obvious to anyone with a functioning brain.. pangaia Feb 2019 #124

I'm good at math and I could see it coming from the beginning. airplaneman Feb 2019 #136

Now I'm really getting scared! StarryNite Feb 2019 #4

Me, too. peacefrogman Feb 2019 #5

In a nutshell I believe homeowners with ALBliberal Feb 2019 #12

I think the republicans wanted to screw America's charities with their tax bill Achilleaze Feb 2019 #16

Charitable contributions are still deductible spinbaby Feb 2019 #23

Nice (for rich republicans) Achilleaze Feb 2019 #25

yep and they raised the amount thats deductible too D_Master81 Feb 2019 #75

The same holds true for mortgage interest. janx Feb 2019 #85

Our nonprofit is hurt because we rely on many small donations Liberty Belle Feb 2019 #117

Yup Freddie Feb 2019 #35

I think they view the non-profit sector as a threat DBoon Feb 2019 #59

That's an excellent point which I hadn't considered. You would think real churches erronis Feb 2019 #87

I worry about charities too TuxedoKat Feb 2019 #22

That is not necessarily true. The elimination of the Personal exemptions, especially for those who still_one Feb 2019 #33

I don't see how states can override federal taxes. watoos Feb 2019 #45

California is over-riding it, they just aren't conforming to federal rules. States can confirm or still_one Feb 2019 #54

The poster is talking about STATE itemization, not federal itemization. Ms. Toad Feb 2019 #120

I didn't know about the HELOC change jmowreader Feb 2019 #62

They can only deduct the interest if it is used for home improvement of principle residence, not for still_one Feb 2019 #66

That will have some negative effect Mr.Bill Feb 2019 #100

For those who used to itemize it sure will because a good number of folks financed their cars still_one Feb 2019 #102

This: shanti Feb 2019 #81

For those over 65 and single it is 13600. For Married filing jointly over 65 it is 26600. still_one Feb 2019 #101

Nope. In the ne homeowners have a $10k cap on deductions. lindysalsagal Feb 2019 #42

First scenario is probably true DeminPennswoods Feb 2019 #58

Have to disagree with your first sentence. It depends spooky3 Feb 2019 #78

Tax question for you Doremus Feb 2019 #82

Sec 199A Deduction for Qualified Business Income arthurgoodwin Feb 2019 #103

Postscript arthurgoodwin Feb 2019 #104

Harumph. Doremus Feb 2019 #108

Coast enid602 Feb 2019 #97

The tax scam will destroy a lot of bank accounts this year dalton99a Feb 2019 #6

I'm really sorry for your sake. PatrickforO Feb 2019 #7

Our family is in the same position as you. Our deductions evaporated. SunSeeker Feb 2019 #8

I recall even before the law was passed.... KY_EnviroGuy Feb 2019 #9

GEE, and the moron's tax cuts is STILL NOT BEING PAID for. pansypoo53219 Feb 2019 #10

+1000. We'll pay for it, and children/grandchildren. erronis Feb 2019 #89

It's those with over-16 dependents that are really being hurt nitpicker Feb 2019 #11

Thanks. That is yet another hit on higher education. Hortensis Feb 2019 #14

wait, other-dependent is non-refundable? Recursion Feb 2019 #50

Oh, my. I'm sorry. And scared to see ours. Hortensis Feb 2019 #13

republicans lied to, and then screwed Americans to enrich rich republicans Achilleaze Feb 2019 #15

Perfect. It might be safer to let the boat go down and see who survives.... erronis Feb 2019 #92

What is the change in the total tax burden? Adrahil Feb 2019 #19

The old withholding was based on nr personal exemptions DeminPennswoods Feb 2019 #60

I went from a typical $3000 refund lanlady Feb 2019 #20

"taxcut" is an increase for many bluestate middleclass wage earners as beachbum bob Feb 2019 #24

That and the elimination of the personal exemption is going to bite a good number in that category. still_one Feb 2019 #36

I think I will be in a similar boat. A couple of thousand smaller swing, but I Squinch Feb 2019 #26

Is anyone else seeing that commercial on tv selling a book about trump's tax bill mucifer Feb 2019 #27

Ours was Skidmore Feb 2019 #28

Of course it's all Obama's fault! Canoe52 Feb 2019 #29

My benefit of the trump tax cut was Turbineguy Feb 2019 #30

would it be possible for you to explain to your customers that its a result Fresh_Start Feb 2019 #31

My son adjusted his withholding twice last year and still owe Gothmog Feb 2019 #34

K-1s are notorous for being late, and technically in violation of the law for that. You should still_one Feb 2019 #37

I had to pay estimated taxes Gothmog Feb 2019 #52

you are very wise, and those who were not paying attention may be in for an unexpected tax bill this still_one Feb 2019 #56

The withholding tables are absolutely broken and you can't convince me it was an accident Recursion Feb 2019 #47

It was clearly not an accident Gothmog Feb 2019 #51

+1 uponit7771 Feb 2019 #88

Here is a good explanation why many will find not benefit from the new tax law if they used to still_one Feb 2019 #38

Thank you I'll read that. ALBliberal Feb 2019 #63

Sickening! Another reason why I can't stand Republcan/Trumpists. oasis Feb 2019 #40

Haven't done ours yet. Virginia Dept of Tax came out yesterday and told everyone to hold off underpants Feb 2019 #43

Yep. I just wrote a check for two grand. I am not ****ing happy. Recursion Feb 2019 #46

My hope in this JustAnotherGen Feb 2019 #48

For us, it's the Blue State penalty. mainer Feb 2019 #49

I expect mine to go down MichMan Feb 2019 #53

You would be incorrect. Most everyone I know got less back this year. Demsrule86 Feb 2019 #146

We ended up fine Bettie Feb 2019 #55

If you increased your withholding, then you also paid more. progressoid Feb 2019 #70

Yeah, but we don't have to come up Bettie Feb 2019 #72

Yeah, I'm self-employed. progressoid Feb 2019 #73

We need to hit this harder riverwalker Feb 2019 #57

GOP expertly crafted the 2018 mid-term election and the 2019 tax return filing. NCjack Feb 2019 #61

This will hurt people's wallets aikoaiko Feb 2019 #64

I have a question customerserviceguy Feb 2019 #65

Mm-hmm. Iggo Feb 2019 #68

I did just that and paid big for it dhol82 Feb 2019 #95

Things went very different with the new tax law customerserviceguy Feb 2019 #99

Prepaying property taxes would not have helped ALBliberal Feb 2019 #147

If property taxes for 2018 customerserviceguy Feb 2019 #154

That's terrible workinclasszero Feb 2019 #67

Yikes! $7000 more? CaptainTruth Feb 2019 #69

Yachts and aircraft for the rich aren't cheap. ooky Feb 2019 #130

And, don't forget underpayment penalties!!! Coventina Feb 2019 #71

The IRS has said it will waive underpayment penalties... Kensan Feb 2019 #106

I'm an exception FreeJoe Feb 2019 #74

hubby and i managed to get a slighlty larger refund this year.. samnsara Feb 2019 #76

I filed the other day via TurboTax FREE CountAllVotes Feb 2019 #77

How is this happening? Is the actual tax going up? JustABozoOnThisBus Feb 2019 #79

1 K here , what a mess. sarcasmo Feb 2019 #80

Your withholding didn't change? fescuerescue Feb 2019 #83

If you live in NY or CA . You are screwed because you lose that UCmeNdc Feb 2019 #90

It's a chess move. zentrum Feb 2019 #84

We're both retired. We got $1000 back last year, this year we're paying $4000. Admittedly.... George II Feb 2019 #86

How did your soc sec jump so much? dhol82 Feb 2019 #96

I use Turbotax and never really looked at the details before this year.... George II Feb 2019 #98

That's why I happily give my account $135. sarcasmo Feb 2019 #107

This is going to be a big issue Gothmog Feb 2019 #91

Best way to get a subservient populace, put them all in phony "debt" and then companies can oppress rwsanders Feb 2019 #93

This is what they do. Voltaire2 Feb 2019 #109

It's also going to bring about a big economic downturn. Many Ferrets are Cool Feb 2019 #111

Perhaps a TOO obvious question for a CPA, but.. what was the difference in pangaia Feb 2019 #112

I'm not CPA, but janx Feb 2019 #119

I plan on rerunning 2017 with my 2018 information ALBliberal Feb 2019 #148

That was their plan. To hit Democrats, who live mainly in high-tax states. Honeycombe8 Feb 2019 #116

April is a terrible month for most freelancers who have to pay quarterlies. Neema Feb 2019 #118

Was there a change in your actual tax bill? Ms. Toad Feb 2019 #121

Yes Ms Toad Fresh_Start Feb 2019 #126

Thanks - Ms. Toad Feb 2019 #131

I am not an accountant Fresh_Start Feb 2019 #134

Sorry - I didn't look carefully & thought you were the OP responding. n/t Ms. Toad Feb 2019 #141

i live in NJ and, because of the tax bill, I lost 20,000 in deductions from state and property taxes Mars and Minerva Feb 2019 #138

Did NJ make any adjustments to compensate for the Federal changes - Ms. Toad Feb 2019 #140

Nothing to change the ax on those deductions... Mars and Minerva Feb 2019 #144

They won't do anything that decreases state revenue. roamer65 Feb 2019 #155

The idea is to set up Municipal charities so that you can donate to your area.... Mars and Minerva Feb 2019 #157

My refund was hundreds of dollars less than last year. LuvNewcastle Feb 2019 #123

Sadly, it's job security for me. Lefta Dissenter Feb 2019 #125

does anyone remember this guy? voteragain Feb 2019 #127

My favorite part about the IRS: refunds are interest free. But UNDERPAY? You owe them a huge penalty MadDAsHell Feb 2019 #128

I completey disagree. Pobeka Feb 2019 #129

1000+ Scruffy1 Feb 2019 #133

It begs the question. Scruffy1 Feb 2019 #135

I got a big tax cut. roamer65 Feb 2019 #137

Ugh. Not looking forward to this. :( C Moon Feb 2019 #139

Feel same way I always do my taxes marlakay Feb 2019 #142

Flu and taxes? Eeeek! C Moon Feb 2019 #143

You think that's bad, I have bronchitis, taxes and I'm having my kitchen and bathroom... Mars and Minerva Feb 2019 #145

:O C Moon Feb 2019 #150

I know...I'm being a baby but it pisses me off that these taxes are going to a government run by... Mars and Minerva Feb 2019 #151

I hear ya! C Moon Feb 2019 #153

Tax returns for this year and next year keep this up we're going to win 45 states in 2020 TeamPooka Feb 2019 #149

for the first time the Presbyterian Church I occasionally sing at, SleeplessinSoCal Feb 2019 #152

The targeting of blue areas in this tax scam was very pinpoint. roamer65 Feb 2019 #156

CPA -ORANGE PARK AREA jcetnar Apr 2019 #158

You might have better luck posting in the Florida Group here: Rhiannon12866 Apr 2019 #159

Post removed Post removed Jun 2021 #160