Disaster.I have no idea how it's going to fall out. The child tax credit increase and reduced phaseouts will be good, but the reduced SALT deduction and no exemptions scare me. I also have some self-employment income and I've heard there's a new deduction for that, but I haven't done any research yet.
Anyone been pleasantly surprised?
But are you paying more or less total tax this year and is your income the same, smaller or greater? For the typical American, the total tax is less, a whopping 1% less in my caseDisaster.
We always get a refund of about $3,000. This year we owe $2,400.
I'm in Kansas. That sounds like you didn't adjust your withholdings maybe for the state?Wonderful, except Kansas did not increase their standard deduction like Federal did, so I owe $2000 in Kansas tax and only had $916 withheld.
I owe $2000 in Kansas tax and only had $916 withheld.
Unless preparing certain tax returns, for example,Amended returns, (Form 1040X) CPAs and other tax preparers having a PTIN issued by the IRS(a preparer identification number for paid tax returns) are required by IRS to be e filed!Slightly off topic, but I mailed (yes mailed, my CPS does not do electronic filing) my taxes 3 weeks ago yesterday, and my refund was direct deposited in my account today.
The poster is saying they OWE $2,000 not that they only paid $2,000 in taxes.I can't imagine a state where the income tax is only $2,000! Top state income tax rate in Kansas is 5.7%. The LOWEST income tax bracket in California is 10.3%
I'm in Kansas. That sounds like you didn't adjust your withholdings maybe for the state?
That's just such a big difference in what was withheld.
Remember too that income tax rates went up between 2017 to 2018.
Taxpayers have a legal right to opt out of electronic filing.Unless preparing certain tax returns, for example,Amended returns, (Form 1040X) CPAs and other tax preparers having a PTIN issued by the IRS(a preparer identification number for paid tax returns) are required by IRS to be e filed!
The poster is saying they OWE $2,000 not that they only paid $2,000 in taxes.
Your 10.3% CA amount is for income over $275,738.00.
For CA for 2018:
View attachment 388835
For Kansas 2018:
View attachment 388836
My husband will actually be taxed at a lower overall rate when he's out in CA for the 6months+ in comparison to Kansas.
Sorry misread that tax tables.The poster is saying they OWE $2,000 not that they only paid $2,000 in taxes.
Your 10.3% CA amount is for income over $275,738.00.
For CA for 2018:
View attachment 388835
For Kansas 2018:
View attachment 388836
My husband will actually be taxed at a lower overall rate when he's out in CA for the 6months+ in comparison to Kansas.
You stated in your original post that your CPA did not do electronic filing, the post didn’t mention that a taxpayer opted out of e filing.Taxpayers have a legal right to opt out of electronic filing.
You just have to fill out form 8948
https://www.irs.gov/pub/irs-access/f8948_accessible.pdf
Sorry misread that tax tables.
Maybe I also misunderstood what poster was saying, to me poster was paying their state tax was $2,000, and only withheld $960. But even if the tax was $2,960, that's pretty low for a state tax.
Virginia did the same. My effective state tax rate increased 1 percentage point. They’re giving us back a few hundred dollars in October but it’s still a big tax hike for me.I did adjust based on withholding tables, but didn't account for losing my itemized deductions for the state. I've always itemized, but since federal upped the standard deduction, I don't exceed the standard. Kansas did not change their standard deduction based on what Federal did, so that messed everything up. Don't forget, I was never intending to have all of my tax liability covered by withholding, since I have that adoption credit to use up.
They have those hotel taxes and such that they charge their toursists.I ballpark it around 6%, so it probably is quite low compared to other states. As I said in response to another poster, I do pay almost 10% in sales tax. I'm not sure how our real estate taxes and personal property taxes compare to other states. I think states collect tax in all of these ways, but at difference percentages. Some may have a low income tax rate and high sales tax rates while others do the opposite. It sure seems like they get us one way or another. If states have no income tax, do they pay exorbitant sales tax rates? Florida has no income tax, but they pay around 6% sales tax, so I'm assuming real estate tax and personal property tax must be high.
And I don't make anywhere near $275,738.00!! LOL!! But let's not forget the almost 10% Sales Tax we pay in my area.
Oh I know we lost out on the itemization too. I know that was being looked at last month or in January for KS though to put into place that you could itemize on state even if you couldn't on federal but haven't heard much on that since. I think it could be because they added other stuff onto the bill which probably reduce the chances of it being passed.I did adjust based on withholding tables, but didn't account for losing my itemized deductions for the state. I've always itemized, but since federal upped the standard deduction, I don't exceed the standard. Kansas did not change their standard deduction based on what Federal did, so that messed everything up. Don't forget, I was never intending to have all of my tax liability covered by withholding, since I have that adoption credit to use up.
Florida is weird. When we lived there my property taxes in Tampa were higher than my parents’ in Naples and the fair market value of their house was 3x the value of mine. So some parts have high property taxes and others don’t. And no personal property tax. But it cost a small fortune to register a car.I ballpark it around 6%, so it probably is quite low compared to other states. As I said in response to another poster, I do pay almost 10% in sales tax. I'm not sure how our real estate taxes and personal property taxes compare to other states. I think states collect tax in all of these ways, but at difference percentages. Some may have a low income tax rate and high sales tax rates while others do the opposite. It sure seems like they get us one way or another. If states have no income tax, do they pay exorbitant sales tax rates? Florida has no income tax, but they pay around 6% sales tax, so I'm assuming real estate tax and personal property tax must be high.
No worriesSorry misread that tax tables.
Totally could be really what the poster was saying lolMaybe I also misunderstood what poster was saying, to me poster was paying their state tax was $2,000, and only withheld $960.
One of the things I would say is CA has a lot more marginal tax brackets than KS does.But even if the tax was $2,960, that's pretty low for a state tax.