Anyone nervous to do their taxes?

[tvguy]

A co-worker today told me today her total Federal tax is $2,700 less than the year before, on high income.. She is in a near minimum wage position, but turned 67 last year and started drawing her full Social Security half way through the year. She says her SS check is more than her take home pay each month. She had 30+ years in a high paying job with a company that went belly up in 2006, so I suspect she gets pretty near the maximum SS benefit. She is in a similar tax situation as me, house has been paid off for years, and no deductions.

 

[snappy]

Depending on her 2018 taxable income, some portion of her social security benefit paid in 2018 will be taxed at less than 100 percent, in fact no more of than 85 percent, but maybe less depending on her overall income for 2018.

 

[PatMcDuck]

Folks that lost work related expense write offs, those with the capped out SALT deductions and it seems those with no/1 child are all categories that seem to have gotten the raw end of the deal here. Seems to be the 75-125K family income folks taking the brunt of this. We made less and paid more in tax this year.

We are all of these things. $5000 more in taxes is just so insane it is hard for me to wrap my head around it that it is real and "correct". We did withhold more, so actual amount owed is $4000. UGH. We have never owed in 35 years married.

 

[tvguy]

Depending on her 2018 taxable income, some portion of her social security benefit paid in 2018 will be taxed at less than 100 percent, in fact no more of than 85 percent, but maybe depending on her overal I come for 2018.

Yes, only part of her SS was taxed.

 

[HMANSION LOVER]

Have 2 kids we don't claim as dependants, so our withholding should be ok and we should not wind up owing (hope and prayers). In years past our return was always more than enough for 10 days on site all included (meal plan, souvineers etc...) so I figure we should get back something. Thank you rich politicians who have tax ATTORNEYS doing their taxes for maximum use of write-offs and LOOPHOLES (which, oh by yhe way, they created) Not trying to start a politician bashing thread just talking the truth!

 

[Deb & Bill]

Yes, last year we paid an insane amount in taxes because we took money from our retirement fund to buy our new house and we had to take out more to cover all the taxes. This year we took out a whole lot less and we're getting a $600 refund. Next year we should take out eve less and just make it on our pensions and SS.

 

[pooh2001]

We use H&R Block - they found some deductions for us

 

[eandt]

I think it's not generic 75K-125K that have taken the brunt...it's that income bracket with few or no kids that used to itemize and be close or over the new standard deduction by using SALT...getting the 3% tax rate deduction doesn't cover losing the 8K in exemptions and/or the loss of property taxes in itemizing (see NJ, where I know those taxes are ridiculous, even on middle class houses - although that's not the fed's fault.

Now, that being said, those taxpayers getting hit probably paid some of the lowest overall federal tax rates on the board to start with, so the new tax laws did probably better balance the load between folks in the same income level across the nation.

I know I've seen many folks with tax raises who have posted their overall taxed rates...and they are still under mine (both my old and new one), at the same income bracket (the 22% one)...

I see most if not all the folks with higher than expected tax bills have a common denominator: HIGH TAX STATES ...... you can fix that in 2020 if you wish. jus sayin

 

[Superchikk]

I see most if not all the folks with higher than expected tax bills have a common denominator: HIGH TAX STATES ...... you can fix that in 2020 if you wish. jus sayin

Having lived in states with and without state taxes, I can say from experience this makes a huge difference.

 

[Dakota731]

We made $3000 more this year and pats $2000 less happy here!

 

[SandyinMonterey]

We moved from California to Southeast. My husband makes less at his new job. We’re getting less than 20% of the refund we got last year.

 

[snappy]

My husband retired mid 2018, and in my very flexible part time gig I earn less than 20% of what I earned through early 2017. Since retirement, the 401K or insurance premium pre-tax withholdings have ended. I thought we would be looking at more taxes but since taxable income is reduced, our income taxes are less. Just in case (we were both CPA’s), we projected our income and taxes, had taxes withheld from IRA distributions and made estimated federal income tax deposits last year. So, although we owe state income tax, it’s more than offset by a healthy federal refund. It will be interesting to see what happens when we start taking SS benefits. More estimates to do!

 

[georgina]

Got an email from one of our mutual fund companies that they got an extension from the IRS until March 15 to get out their 1099 divs (due to a complicated situation). So I won't be doing my taxes for a while. I have been planning to sell that fund, now I definitely will this year!

 

[snappy]

That’s a long extension!

 

[MermaidMommy]

Unfortunately, we're going to end up netting $2500 less this year because of the new tax law. We have one college-age child, and, now that we can't take the personal exemption on her, we're seeing our taxes increase. The $500 credit doesn't make up the difference at all. Oh, and I live in Texas, so state income taxes aren't a factor -- we don't have them.

Apparently, estimates are that 27% of people with at least one dependent over age 16 will see a tax increase. Not exactly how this was supposed to work out -- the 2018 Tax Increase!

 

[NYCgrrl]

Anyone nervous to do their taxes?

No, should I be?
My legal dependents aged out decades back. DGD lives with us most of the year and I allow her mother to use her on her taxes because it's simpler than arguing with her over the money I have vs the money she doesn't (and never will. Pfft).
I'm used to paying taxes at this point and have experience doing it for some time. Once I got past my fear of math taxes became simple to do.

 

[havaneselover]

Unfortunately, we're going to end up netting $2500 less this year because of the new tax law. We have one college-age child, and, now that we can't take the personal exemption on her, we're seeing our taxes increase. The $500 credit doesn't make up the difference at all. Oh, and I live in Texas, so state income taxes aren't a factor -- we don't have them.

Apparently, estimates are that 27% of people with at least one dependent over age 16 will see a tax increase. Not exactly how this was supposed to work out -- the 2018 Tax Increase!

Yep. Mine are 14 and 15 so my federal increases have only begun.

 

[Toolulu22]

We had ours done yesterday. We use an accountant and I’m always nervous going in. We had significantly more income this year, the $10k tax cap to contend with- a major factor in our area. We had a lower refund, but that’s ok. We see more in our paychecks and didn’t have to write a check last night (except to pay the accountant). I have extra money taken out of my paycheck for state and will up that a little this year again as I do every year. I will probably do it for Federal as well in the future, as our deductions shrink (student loan interest).

Good luck to everyone else!

 

[Mackenzie Click-Mickelson]

Anyone nervous to do their taxes?

No, should I be?
My legal dependents aged out decades back. DGD lives with us most of the year and I allow her mother to use her on her taxes because it's simpler than arguing with her over the money I have vs the money she doesn't (and never will. Pfft).
I'm used to paying taxes at this point and have experience doing it for some time. Once I got past my fear of math taxes became simple to do.

I don't think it's that people were nervous to do taxes as in general. It's because of the large adjustment to the tax law. Not every state or even company was readjusting people's taxes automatically. People losing things they had gotten used to, etc. So yeah...totally understandable to be nervous about the outcome of a tax overhaul.

 

[tvguy]

We had ours done yesterday. We use an accountant and I’m always nervous going in. We had significantly more income this year, the $10k tax cap to contend with- a major factor in our area. We had a lower refund, but that’s ok. We see more in our paychecks and didn’t have to write a check last night (except to pay the accountant). I have extra money taken out of my paycheck for state and will up that a little this year again as I do every year. I will probably do it for Federal as well in the future, as our deductions shrink (student loan interest).

Good luck to everyone else!

Not sure why folks are so hung up on a smaller refund. Was your TOTAL tax more or less than last year even with the higher income ?