TAXES - A Question for those who have completed (Page 2): Sadly many Americans think their refund is a gift from the gubmint.

LWW Loc: Banana Republic of America

selmslie wrote:

The vast majority will end up paying less in feder... (show quote)

Sadly many Americans think their refund is a gift from the gubmint.

btbg

ricardo7 wrote:

Last year Trump promised tax cuts for many middle income
Americans as part of his tax reform program. However, I've
seen many articles that have stated that the tax cuts are not
panning out and people are paying more taxes than before.

By now, many people on this forum have completed their tax
returns. What has been your experience. Did you indeed receive
a tax reduction or not.

The stories don't say that people are paying more in taxes. They say that people are getting smaller refunds. That is because there was less held out of their checks originally because of the change in tax structure.

The only people who are paying more in taxes are rich people in places like New York or California which have high state income tax rates and allowed federal taxes to be taken as a deduction. On the new rules they may only deduct $10,000 of their federal taxes on their state tax form. The end result is their state taxes have gone up more than their federal taxes have gone down.

As long as your federal tax is low enough that you don't deduct more than $10,000 on your state tax forms you will see a drop in your taxes. However, if you normally receive a large rebate this year's rebate will be smaller than in previous years, or possibly even non-existant as you got to keep the money in your weekly or bi-weekly paycheck instead of having it taken out and then getting it back later.

ricardo7 Loc: Washington, DC - Santiago, Chile

Good clarification.

quagmire Loc: Greenwood,South Carolina

got enough back to fly to Tampa and back and take a cruise to Mexico

dakotacheryl Loc: Near Mt Rushmore

My take home pay increased by a little over $200 per month during the year. My tax refund increased just a little bit.

ayersrl Loc: Palm Beach Gardens,Fl

Haven't had to pay any taxes since I retired.Don't know if that means good planning, or I'm just poor?

yhtomit Loc: Port Land. Oregon

ricardo7 wrote:

Last year Trump promised tax cuts for many middle income
Americans as part of his tax reform program. However, I've
seen many articles that have stated that the tax cuts are not
panning out and people are paying more taxes than before.

By now, many people on this forum have completed their tax
returns. What has been your experience. Did you indeed receive
a tax reduction or not.

Extension...I expect to pay more because I live in a state that had federal subsidies...

dennis2146 Loc: Eastern Idaho

The past few years we have had to pay state and federal taxes. This year we are getting a refund from both. But the point some people seem to be missing, especially the Left to support their anti Trump agenda, is the tax cuts increased our take home pay, while not necessarily whether we pay more or less at tax time. We did get tax cuts. Surprisingly the Liberals did too.

Dennis

John_F Loc: Minneapolis, MN

I have yet to run TurboTax so do not know my result. The 2017 tax law did reduce withholding but did eliminate the personal exemption, worth $4050 per person. For me this increases my taxable income by $8100 before deductions. The standard deduction was doubled to $24,000 for married couples. So there is a potential for overall tax reduction, but if your withholding was insufficient you could see either a much smaller refund or maybe a pay-in. Shortly after the 2017 tax law passed, I saw articles by tax preparation specialists advising people to adjust their withholdings and other tax factors - some people listened, others did not. One issue for me was the ‘cap’ on state & local taxes deduction (State income, sales, property, vehicle tabs, etc), so I arranged to pay 2018 property taxes in 2017, so earning a one-time benefit. Had I not pre-paid that tax it would have been capped out of existence anyway.

gorgehiker Loc: Lexington, Ky

While we rejoice over lower taxes, the national debt continues to escalate which weakens our country.

dennis2146 Loc: Eastern Idaho

gorgehiker wrote:

While we rejoice over lower taxes, the national debt continues to escalate which weakens our country.

I noticed that problem after 2008 but it sure didn't bother the Democrats much. Now it seems to bother them but AOC tells us she wants more and more which of course will cost us more and more.

Dennis

traderjohn Loc: New York City

nadelewitz wrote:

Why not just do YOURS and see what you find for YOUR situation? Everybody is different...income amount and sources...withholding amounts...credits....deductions....ad infinitum.

Would you like a little cheese with your whine???

Elaine2025 Loc: Seattle, Wa

dennis2146 wrote:

I noticed that problem after 2008 but it sure didn't bother the Democrats much. Now it seems to bother them but AOC tells us she wants more and more which of course will cost us more and more.

Dennis

Shutterbug1697 Loc: Northeast

I worked for multiple employers for different lengths of time, and at different hourly rates in both 2017, and 2018, as well as collecting unemployment benefits in both years. Then in 2018 I was forced to apply for early SS Benefits, two days before I found a new job.

So comparing the earnings and taxes in both years isn't a simple task.

It looks like I earned less in 2018, and I paid lower taxes, but I really can't atrribute the lower taxes to the 2017 tax bill.

gorgehiker Loc: Lexington, Ky

dennis2146 wrote:

I noticed that problem after 2008 but it sure didn't bother the Democrats much. Now it seems to bother them but AOC tells us she wants more and more which of course will cost us more and more.

Dennis

The huge deficit is a problem that all Americans should be concerned about. It is a debt that is owed by every Democrat and every Republican. Both parties are responsible for accumulating the debt. The problem will not be solved by pointing fingers at each other!