Anyone nervous to do their taxes?

Discussion in 'Budget Board' started by goodeats, Jan 23, 2019.

  1. havaneselover

    havaneselover Dreaming about a Disney cruise

    Joined:
    Nov 9, 2009
    Messages:
    7,325
    Isn’t your second oldest 16? Meaning for 2019 you lose the $2000 credit on her? That’s what I find so irritating. Why on earth are they ending the credit at 16? Anyway—I’m just generally irritated because it’s not really simpler and it didn’t help me at all and will start costing me more next year when dd turns 17. And I’m solidly middle class!
     
    mich311e, amyg1975 and wendow like this.
  2. jerseygal

    jerseygal DIS Veteran

    Joined:
    Jan 1, 2008
    Messages:
    6,470
    No income tax state, Florida. Tired of the winters and high taxes. Florida also is very favorable " long down the road" hopefully:cheer2:;) for our heirs for no estate tax.
     
    j's m, Shughart, eandt and 1 other person like this.
  3. Avatar

    Advertisement


  4. jerseygal

    jerseygal DIS Veteran

    Joined:
    Jan 1, 2008
    Messages:
    6,470
    The child tax credit has always been UNDER 17 for many years. Keep in mind the tax reform act, doubled the child tax credit from $1,000 to $2,000 each.::yes::
     
    twoolle likes this.
  5. havaneselover

    havaneselover Dreaming about a Disney cruise

    Joined:
    Nov 9, 2009
    Messages:
    7,325
    Right, but in doubling it it was supposed to offset some of the other changes but it only helps those with younger families.
     
    deide71, j's m, mich311e and 3 others like this.
  6. wendow

    wendow We create happiness.

    Joined:
    Feb 11, 2012
    Messages:
    9,064
    We’d like to make that move too. Someday :)
     
    jerseygal likes this.
  7. wendow

    wendow We create happiness.

    Joined:
    Feb 11, 2012
    Messages:
    9,064
    It’s like they think after 16, these kids are somehow less expensive. IME, that’s when the expenses are really getting going. DD16 is far more expensive now than she was two years ago and that isn’t about to change lol.
     
    Rosanne, mich311e, bgirldeb and 5 others like this.
  8. AlohaNow

    AlohaNow Just keep swimming...

    Joined:
    Oct 19, 2008
    Messages:
    797
    When you say 'in deduction or pay' do you mean withholding? DH and I both work for non-profits and our employers adjusted our withholding off the new tables without us having to take any action in February of last year. I'm just curious why you mention non-profit, as if it works differently than for-profit employees. No snark intended at all, just a sincere question.

    I'm also in the boat of having my oldest turn 17 in 2019. It was great while it lasted my dear little former tax deduction.... 8-)
     
  9. WVMomof3

    WVMomof3 DIS Veteran

    Joined:
    Feb 21, 2005
    Messages:
    1,529
    Another thing that irritates me is the "big raise" in the standard deduction that was so widely talked about as being a great thing. I think this may have been touched on earlier, but just didn't sink in with me until I did our taxes. That standard deduction was only raised for married with no children! If you have kids then your deduction went down. Possibly also raised for single people, it has been forever since I was single, so haven't looked at those rates. But in the past you also got the exemptions if you made $156k or less, which to me is the definition of middle class. Which is who this tax cut was touted for. So you got the $12,700 standard deduction PLUS the $4050 x number of people. So a married couple with no kids their deduction would be $20,800. congrats, your standard deduction went up. If you have one kid, then your deduction would have been $24,850 - congrats your deduction went DOWN. The more kids you had the bigger loser you are. Three kids here, so feel like a big loser on that standard deduction. Congratulations everyone's taxable income went up. Then they "cut" the tax rate so I would guess for most people it was a wash.
     
    Rosanne, cmarsh31, Happy814 and 3 others like this.
  10. wendow

    wendow We create happiness.

    Joined:
    Feb 11, 2012
    Messages:
    9,064
    So, my dh’s check is the same every month. It never changed at all after the tax changes. Since it was big news at the time how most would be seeing more money in their checks and many large companies were giving one time bonuses to their employees, I (possibly incorrectly) assumed my dh saw no change since he works for a nonprofit. They are exempt from some taxes so I figured the tax changes were not ones they have to pay. I kept asking my dh to ask someone at work but he’s super busy and there really isn’t a lot there in terms of a ‘HR’ dept lol. I even tried to research it some but all I could really find was how there would probably be less charitable giving due to the changes, and that’s been true for my dh’s workplace for sure.
     
    robinb and AlohaNow like this.
  11. WVMomof3

    WVMomof3 DIS Veteran

    Joined:
    Feb 21, 2005
    Messages:
    1,529
    @wendow Did you sleep at all last night??
     
    wendow likes this.
  12. wendow

    wendow We create happiness.

    Joined:
    Feb 11, 2012
    Messages:
    9,064
    Not much. Two’ish hours. I have crazy sleep issues :crazy2:
     
  13. smiths02

    smiths02 DIS Veteran

    Joined:
    Feb 13, 2009
    Messages:
    5,290
    We had phased out of the child tax credit, though. So with 3 kids, we did better because of getting that back.
     
    Ngwira likes this.
  14. TwoMisfits

    TwoMisfits DIS Veteran

    Joined:
    Feb 21, 2002
    Messages:
    2,775
    It's the reason the child tax credit was doubled...$1K credit is equal to the $4050 exemption...so, the idea was everyone should see about a 3% decrease in their taxes (but not 10-20%)...for ease, 3% on $76K taxable (which would be a $100K salary with the standard deduction) would be $2280 total savings. So, 3% isn't an enormous number...unless we ever talk about other types of decreases at the governmental level:)...

    And the decrease would not be universal...those without kids or large house payments and those in low taxes states would get more than those with the reverse. It is probably hugely beneficial to the 65+ population, who tend to live in lower cost housing, have no kids, and have moved to the low cost states (hello Florida)...they do tend to be the highest % voting population, so it's no surprise they probably got the biggest benefit (I know my mom made out like a bandit)...
     
  15. smiths02

    smiths02 DIS Veteran

    Joined:
    Feb 13, 2009
    Messages:
    5,290
    So I did my mom's taxes for her. She's single and earns a small income. Anyhow, her income went up $519 from 2017 to 2018, but her taxes went down by $105, but her refund went down $83. And she has been on FB posting about how her refund went down. :sad2:

    So this year, meaning 2018,her federal taxes were 3.7% plus she had to pay back $300 for the medical insurance subsidies she gets for the healthcare exchange
    Last year, meaning 2017, her federal taxes were 4.4% plus she had to pay back $300 for the medical insurance subsidies she gets for the healthcare exchange
     
    Last edited: Feb 11, 2019
  16. havaneselover

    havaneselover Dreaming about a Disney cruise

    Joined:
    Nov 9, 2009
    Messages:
    7,325
    I think the biggest benefit went to corporations. I’m okay with that assuming it helps economic growth but who know.
     
    Ngwira and wendow like this.
  17. TwoMisfits

    TwoMisfits DIS Veteran

    Joined:
    Feb 21, 2002
    Messages:
    2,775
    True, too...but we were talking individuals...it has seemed to slow the movement of corporations and jobs overseas and even spurred some direct US job growth (whether the tax cuts or deregulation is the bigger contributor, who knows), so in the overall sense, it seems to be a winner, even if not the expected direct winner to most people's individual pockets...

    I expect when I do taxes next weekend to break pretty close to even, since my withholding already reflected the 3% tax decrease - it made for a better year with higher income, but I know my normal "book a vacation" refund money is now gonna have to be saved for 12 months vs windfalling on one day, since I expect not to receive one this year:)...
     
  18. WVMomof3

    WVMomof3 DIS Veteran

    Joined:
    Feb 21, 2005
    Messages:
    1,529
    Assuming same income and same ages of kids, mine would have decreased 2.3%. We have not itemized in years. We try to make our withholdings about equal to our tax before any credits, because DH believes those can be taken away any time, plus as the kids age, they really are taken away. When they lowered his withholdings last year he went in and raised them back up so we didn't see any difference in pay. And we were about $2000 short of hitting the straight tax before credits. We have 1 in high school and 2 in college so we did pretty good with the college credits and the increased child deduction but I have one of those pesky 17 yr olds this year so will see $1500 less next year. I have not done our state taxes yet, so not sure how those will fair.
     
    Rosanne likes this.
  19. eandt

    eandt Mouseketeer

    Joined:
    Nov 15, 2006
    Messages:
    214
    As it was explained at the time some would pay more, some would pay less, some would stay about the same. We got a couple hundred less back in a return but also PAID less taxes over the course of the year because the tax cut meant more in our paychecks. The fact is more people are better off and more people are working than there were 2 years ago. Hopefully that continues.
     
    BamaBoy, tvguy and LongLiveRafiki like this.
  20. jerseygal

    jerseygal DIS Veteran

    Joined:
    Jan 1, 2008
    Messages:
    6,470
    New credit for other dependents 17 and older that didnt exist till this year, $500 that you can take if they are a college student and under 24 OR if 19 and over if they are not a college student if they don’t make more than 4,150. Better than nothing!:cool1:
     
    wendow and havaneselover like this.
  21. smiths02

    smiths02 DIS Veteran

    Joined:
    Feb 13, 2009
    Messages:
    5,290
    I was watching the news a day or two ago, and the refunds were a big story. They highlighted one woman who was used to getting back $900 but now owed $28. They made no mention of if her taxes actually increased...just that her refund decreased. Then the advice was to increase withholding. Now, I feel for this woman as she counted on the $900 for things like new tires for her car, etc; however, it seemed to me like owing $28 is the tax scenario that is desirable in general. She should not increase her withholding, she should just have $75 a month go directly from her paycheck into a savings account so she can get that $900 she needs.
     

Share This Page