Anyone nervous to do their taxes?

[billlaurie]

We have a lot less money in our pocket with the tax changes. We are just about breaking even and that is after making adjustments to the withholdings last winter that were equivalent to what we were paying before the "cuts". We usually get a couple grand back. I do have some family members who did not adjust their withholdings and they owe over $2000! They are not pleased.

 

[Superchikk]

I'm impressed y'all can all file at this point. I'm still waiting on several documents to arrive through snail mail, including the form our health insurance company has to send us. I called today and they told us it could take 14 days to arrive... mail takes 2 days to get here from where they're based. I wasn't allowed to request another one until the 14 days have passed since they mailed it, and they don't let you print from the website. Because that would be too easy, I guess.

 

[kymom99]

Still waiting for tuition statements from sons college

 

[McKelly]

Still waiting for tuition statements from sons college

Did you have him check if they were on-line?

 

[barkley]

Still waiting for tuition statements from sons college

you might check and see if they are going to mail it at all.

this year dd's university chose not to mail the ones they aren't required to so since dd's grants/scholarships exceeded her qualified tuition and fees for last year she fell into the non mailed category. we ended up having to print the 1098 t from the school's website.

 

[kristenabelle]

Terrified. We live in NJ. Our SALT is double the new amount allowed.

Also in NJ. Also getting hammered by lack of SALT deductions.

 

[havaneselover]

I just did mine. The Tax Act of 2018 definitely didn't help me and 1) I'm not in a high tax state and 2) I'm still getting credit on both my kids (dd turned 15 in 2018). What killed me was I am a single parent and very close to being able to itemize but not quite there because my mortgage is modest. Also, I took a huge hit on my state tax return because I can't itemize on federal anymore. All in all my federal and state taxes were up 33% (I did see a 10% increase in income though).

 

[michelleh1]

I'm trying to decide if I can claim my adult son as a dependent for 2018. He was gone until the end of July doing a proselytizing service mission for our church. We donated money each month for his living expenses, but technically our church provided his support. He came back the end of July and lived with us, plus was a full time student the rest of the year (August thru December). Since he lived with us part of July, if we include July through December then that gives us 6 months. Does that mean that we can claim him, or does it need to literally be 6 months or more? Does anyone know? Thanks!

 

[eandt]

I just did mine. The Tax Act of 2018 definitely didn't help me and 1) I'm not in a high tax state and 2) I'm still getting credit on both my kids (dd turned 15 in 2018). What killed me was I am a single parent and very close to being able to itemize but not quite there because my mortgage is modest. Also, I took a huge hit on my state tax return because I can't itemize on federal anymore. All in all my federal and state taxes were up 33% (I did see a 10% increase in income though).

There is no way that your taxes should have gone up 33% absent any major changes in ur status... you need to recheck or have a professional do it for you.

 

[eandt]

I'm trying to decide if I can claim my adult son as a dependent for 2018. He was gone until the end of July doing a proselytizing service mission for our church. We donated money each month for his living expenses, but technically our church provided his support. He came back the end of July and lived with us, plus was a full time student the rest of the year (August thru December). Since he lived with us part of July, if we include July through December then that gives us 6 months. Does that mean that we can claim him, or does it need to literally be 6 months or more? Does anyone know? Thanks!

Unless he is claiming himself on his return I’d claim him.

 

[havaneselover]

There is no way that your taxes should have gone up 33% absent any major changes in ur status... you need to recheck or have a professional do it for you.

Um, they did because the new treatment of hh. Also that includes my state taxes which went up significantly because I cannot itemize on federal. I appreciate your advice but my taxes are straight forward and I am extremely competent at mathematical analysis There were winners and losers with this legislation and single parents were generally not winners—especially ones with older teens. It is what it is.

 

[TwoMisfits]

Um, they did because the new treatment of hh. Also that includes my state taxes which went up significantly because I cannot itemize on federal. I appreciate your advice but my taxes are straight forward and I am extremely competent at mathematical analysis There were winners and losers with this legislation and single parents were generally not winners—especially ones with older teens. It is what it is.

If you are close to itemizing on federal, it seems obvious, you should do so, even if it holds down your federal refund b/c you will pay off so high on the state.

I am in the same boat, while I wait to see how my state is adapting to the feds, so I'm not filing until I know b/c it's the total amount of tax that matters, not just one or the other...

For example, if I get to $23K itemized deductions vs the $24K standard on the fed (for a family) and my fed bracket is 21% on that $1K extra income...but my state (with a 6% tax rate) says I do eventually have to file the same way (itemized vs standard), and my state only gives me $6K for its standard, I would obviously itemize because $210 more on the fed will be much less than the extra $1020 on the state.

I think this is why folks say you need an accountant...b/c if you were as close to itemizing as you say, it is likely the route you still should have taken...

 

[havaneselover]

If you are close to itemizing on federal, it seems obvious, you should do so, even if it holds down your federal refund b/c you will pay off so high on the state.

I am in the same boat, while I wait to see how my state is adapting to the feds, so I'm not filing until I know b/c it's the total amount of tax that matters, not just one or the other...

For example, if I get to $23K itemized deductions vs the $24K standard on the fed (for a family) and my fed bracket is 21% on that $1K extra income...but my state (with a 6% tax rate) says I do eventually have to file the same way (itemized vs standard), and my state only gives me $6K for its standard, I would obviously itemize because $210 more on the fed will be much less than the extra $1020 on the state.

I think this is why folks say you need an accountant...b/c if you were as close to itemizing as you say, it is likely the route you still should have taken...

My standard deduction is $18,000. I'm probably at $15,000. Last year my itemizations were higher (around $20,000) because I was fairly strategic knowing I would not be able to itemize in 2018. So for me the increase on federal probably won't offset the decrease on state or if it does so it would be much smaller than your example but I will run the numbers and appreciate you pointing this out. That said, with good advice like yours I don't think an accountant is necessary And the amusing thing is the legislation was supposed to make things simpler!

ETA: Just used my itemized deductions and my state tax refund increased by $400 but my federal refund declined my $750. I guess I'll stick with not itemizing.

 

[TwoMisfits]

My standard deduction is $18,000. I'm probably at $15,000. Last year my itemizations were higher (around $20,000) because I was fairly strategic knowing I would not be able to itemize in 2018. So for me the increase on federal probably won't offset the decrease on state or if it does so it would be much smaller than your example but I will run the numbers and appreciate you pointing this out. That said, with good advice like yours I don't think an accountant is necessary And the amusing thing is the legislation was supposed to make things simpler!

ETA: Just used my itemized deductions and my state tax refund increased by $400 but my federal refund declined my $750. I guess I'll stick with not itemizing.

In the future, if your state does not change its standard deduction (which many are considering), it may pay off for you to compact itemized deductions into one year and itemize and then take the standard in the following year...so, for example, if you have charitable donations, compact them into on year (saving them vs giving them the year before) and do double one year and none the next (maybe not that severe, but you get the point)...

 

[havaneselover]

In the future, if your state does not change its standard deduction (which many are considering), it may pay off for you to compact itemized deductions into one year and itemize and then take the standard in the following year...so, for example, if you have charitable donations, compact them into on year (saving them vs giving them the year before) and do double one year and none the next (maybe not that severe, but you get the point)...

Yes, definitely on my radar.

 

[eandt]

Um, they did because the new treatment of hh. Also that includes my state taxes which went up significantly because I cannot itemize on federal. I appreciate your advice but my taxes are straight forward and I am extremely competent at mathematical analysis There were winners and losers with this legislation and single parents were generally not winners—especially ones with older teens. It is what it is.

I will stick by my comment. jus sayin

 

[havaneselover]

I will stick by my comment. jus sayin

No worries. I'll stick by mine

 

[Jen and Ashwin]

Like any others, we weren't able to itemize as we have in years past, mostly due to the limit on SALT. We don't even have an expensive house ($215k) and we live in a township with lower taxes, so it is crazy to me to think of those that live in places with a high cost of living. We ended up owing almost $1k on fed. We did get a bit more back on state than we did the year before, but that was because we started saving in a 529 for DD, not because of the federal changes.

 

[Darcy03231]

Just did ours this morning. Income was about the same as last year (slightly higher) and we ended up owing $1500 less in taxes, so a win for us.

 

[AngP]

I was very nervous because I didn’t adjust witholdings last year. Ended up getting less federal but more state; as a whole got $50 more this year.