2018 Taxes

[Cyclone06]

So I spent a whole hour of time last night beginning my 2018 federal tax return. Having received my wife and I's W2s I was kind of excited as I considered the prospects of a better tax result for our family in 2018. The increased standard deduction (we were close to the new standard amount with itemization in 2017) and rate decreases are cool but the doing away of the person exemptions sucks. Basically from what I can tell so far, my tax situation improves none, and may even be worse than prior years. That is strange to me because I have heard a lot about the good the tax law changes will bring. Still a lot of detail for me to wade through though so hopefully my initial high level view is off.

Disclaimer: I chose off topic to keep this about 2018 tax return filing and how it goes for others but I am well aware this teters on the edge of a political topic.

 

[isufbcurt]

So I spent a whole hour of time last night beginning my 2018 federal tax return. Having received my wife and I's W2s I was kind of excited as I considered the prospects of a better tax result for our family in 2018. The increased standard deduction (we were close to the new standard amount with itemization in 2017) and rate decreases are cool but the doing away of the person exemptions sucks. Basically from what I can tell so far, my tax situation improves none, and may even be worse than prior years. That is strange to me because I have heard a lot about the good the tax law changes will bring. Still a lot of detail for me to wade through though so hopefully my initial high level view is off.

Disclaimer: I chose off topic to keep this about 2018 tax return filing and how it goes for others but I am well aware this teters on the edge of a political topic.

They didn't publicize the exemptions going away as their talking point was the "double standard deduction".

The double standard deduction sounds great until you figured out you were losing exemptions which turns it into a net negative for most people.

 

[IcSyU]

The average person will have no idea how to comprehend whether it helped them or not strictly due to lack of understanding how taxes work. Getting a refund in 2017 and not getting a refund in 2018 does not mean the tax changes didn't help you. Most people will have exactly zero understanding of that.

Low income earners who expect gigantic refunds are going to be an accountant's worst nightmare this year because it's very possible their $8,000 expected refund is going to fall because they had less withholding during the year (and therefore more money in their pockets) but that extra $100/mo lowers their refund to $6,800. Timing of the cash flow changed...the amount didn't. They're going to say the new tax law "hurt" them.

 

[BryceC]

Ours will almost certainly be worse, and it will be worse for a lot of people, especially if you have more than 2 kids.

 

[Rural]

It was a con job.

 

[Sigmapolis]

So I spent a whole hour of time last night beginning my 2018 federal tax return. Having received my wife and I's W2s I was kind of excited as I considered the prospects of a better tax result for our family in 2018. The increased standard deduction (we were close to the new standard amount with itemization in 2017) and rate decreases are cool but the doing away of the person exemptions sucks. Basically from what I can tell so far, my tax situation improves none, and may even be worse than prior years. That is strange to me because I have heard a lot about the good the tax law changes will bring. Still a lot of detail for me to wade through though so hopefully my initial high level view is off.

Disclaimer: I chose off topic to keep this about 2018 tax return filing and how it goes for others but I am well aware this teters on the edge of a political topic.

That was kind of the idea of that tax reform for individuals --

-- lower rates (which are fun until we have to pay the incurred deficit through either cuts in spending, higher interest rates, higher inflation, or higher future taxes)

-- broader base (mostly by taking a shovel to deductions through less of them and the higher standard deduction) and fewer tax expenditures embedded in the system

Anyways, keeping the discussion as extremely narrow and parochial as possible, this is actually going to help somebody like me (relatively high-income but completely lacking in deductions somehow) quite a lot. I know the idea of a high-income renter is strange to people in Iowa, but it is common on the East Coast, and it really helps my species.

Until, you know, we have to pay for this, or trillions of dollars in other "fun" ideas, later.

 

[RonBurgundy]

I got a nicer refund coming, and nothing changed significantly in exemptions for my family. Plus I think I got more take-home last year than 2017, even accounting for increased salary.

 

[Rabbuk]

Doing mine now, it's not looking excellent

 

[IcSyU]

Ours will almost certainly be worse, and it will be worse for a lot of people, especially if you have more than 2 kids.

Lose exemptions but gain child tax credit should be a wash in a lot of cases...

Now let's say you have 3 kids who are in college....that's going to hurt. No child tax credit and lose $20,000 in exemptions. Ouch.

 

[Doc]

Not going to do them. Gonna wrap myself in barbed wire and call myself a sovereign citizen. Come git some Trump!

 

[dualthreat]

Last year I had to pay in. This year I got a big salary raise but didn't withhold anything.. feared I might have to pay in again. Ended up getting a pretty big refund and was thrilled.

I chose paper check but read that most people (8/10) do direct deposit. Could that be right??

 

[isufbcurt]

Last year I had to pay in. This year I got a big salary raise but didn't withhold anything.. feared I might have to pay in again. Ended up getting a pretty big refund and was thrilled.

I chose paper check but read that most people (8/10) do direct deposit. Could that be right??

Out of all my clients only one guy does the check instead of DD.

 

[IcSyU]

Last year I had to pay in. This year I got a big salary raise but didn't withhold anything.. feared I might have to pay in again. Ended up getting a pretty big refund and was thrilled.

I chose paper check but read that most people (8/10) do direct deposit. Could that be right??

Always told clients direct deposit for the sole reason of it coming a lot faster. I'm actually kind of surprised it's only 8/10. The offices I've worked in it would've been closer to 9/10 or 95/100.

 

[kilroy]

Last year I had to pay in. This year I got a big salary raise but didn't withhold anything.. feared I might have to pay in again. Ended up getting a pretty big refund and was thrilled.

I chose paper check but read that most people (8/10) do direct deposit. Could that be right??

I direct deposit,

Im in the same boat as you, got a great return. which mean I way over paid....

but my point is taxes worked LOTS better for me. I'm Glad to see the changes.

 

[dualthreat]

Always told clients direct deposit for the sole reason of it coming a lot faster. I'm actually kind of surprised it's only 8/10. The offices I've worked in it would've been closer to 9/10 or 95/100.

Yeah i'm kind of regretting it now

 

[CycloneErik]

Last year I had to pay in. This year I got a big salary raise but didn't withhold anything.. feared I might have to pay in again. Ended up getting a pretty big refund and was thrilled.

I chose paper check but read that most people (8/10) do direct deposit. Could that be right??

I don't understand why anyone would pick the paper check. Just a waste of time.

 

[cycloneworld]

So I spent a whole hour of time last night beginning my 2018 federal tax return. Having received my wife and I's W2s I was kind of excited as I considered the prospects of a better tax result for our family in 2018. The increased standard deduction (we were close to the new standard amount with itemization in 2017) and rate decreases are cool but the doing away of the person exemptions sucks. Basically from what I can tell so far, my tax situation improves none, and may even be worse than prior years. That is strange to me because I have heard a lot about the good the tax law changes will bring. Still a lot of detail for me to wade through though so hopefully my initial high level view is off.

Disclaimer: I chose off topic to keep this about 2018 tax return filing and how it goes for others but I am well aware this teters on the edge of a political topic.

Its my understanding that since you were close to the new standard deduction amount in previous years, your impact won't be that great (up or down). It's people that have lower deductions compared to the new standard amount that will benefit.

 

[Cyched]

Out of all my clients only one guy does the check instead of DD.

I get paid in IOUs. Suckers.

 

[IcSyU]

I don't understand why anyone would pick the paper check. Just a waste of time.

People who don't pay their bills can't let anything hit their bank account or they don't see it.

We have about 120 employees. 10-15 get paper paychecks so they can go to the check cashing places because if it hits their bank account it's gone to pay their medical bills or whatever.

 

[CascadeClone]

The average person will have no idea how to comprehend whether it helped them or not strictly due to lack of understanding how taxes work.

This is a feature, not a bug.

And I don't mean just of the 2018 changes, but income taxes in general. The federal tax code is about the most complicated thing in the universe, and it's by design.

I would vote for anyone who would change it to a flat tax of some kind, even if the rates were higher. I know that's complicated to implement, but at least you wouldn't have to worry about going to jail because you couldn't understand how to apply Schedule RQ-85G. Apologies to all the tax accountants who would have to look for work.