Jump to content
Barms

Tax returns....

Recommended Posts

Please no bitcoin in here.   :-)

before you fly off half cocked that you thought Trump was gonna give you a tax break...   “but how come my refund is not bigger?”

1.  Judge your tax situation by comparing your TOTAL tax liability for the year, not just how your tax “refund” compares to last year.

2.  Do not forget to compare your paycheck in May 2018 vs a check in May 2017.   (“Oh look at that my check has $200 more in it than it did last year.”)

im already seeing people whine “my refund isn’t as big as last year.”   

3.  If you are reading this there is 66% chance you were AMT last year.  and if you and spouse earned over $200k then you were 90% chance AMT in this state.   AMT means you were not getting credit for your property tax deduction, zero.  You were not getting credit for state income tax deduction.  Zero.  You were not getting credit for children exemption.  Zero.   

look at your 2017 tax return.  If in the bottom right Altenative Minimum Tax you have any number greater than zero you were AMT.   That means $10k SALT deduction cap doesn’t matter to you now because you weren’t getting the credit anyway last year.

for those that are really savvy and knew that removal of AMT for 2018 would actually INCREASE liabilities for some, yes that would be true if they kept the marginal brackets the same for 2018, but they lowered them so you should pay less.

if you really are paying more TOTAL tax than last year you either made more money this year,  owed taxes on gains from stocks or bonds or took money from some qualified account that are getting taxed on now.  Or you were some sort of yeti that earns a lot of income but wasn’t AMT last year.

I’m really shocked how many people knew they were AMT when they do their TurboTax but still think they were getting $12k tax credit for 3 kids.    If the bottom right of your return say AMT the ONLY SINGLE thing you were actually getting a credit for is your mortgage interest and your charity.  Nothing else,  no kids, no property taxes, no state taxes   Just because you put numbers in the program doesn’t mean it changes your tax.

i am curious and would like to hear stories from those that basically did have same Adjusted Gross Income as last year and are paying more TOTAL federal tax than last year.   And please state if you were AMT last year.  It’s barely “supposed” to happen I want to know the situations when it did.    (Of course don’t post how much you make)   Something like “married filing joint,  was not AMT last year,  3 kids.  Income almost same as last year and my total federal taxes owed went up $5k” or something like that.

 

 

  • Informative 1

Share this post


Link to post
Share on other sites
2 hours ago, Handyman said:

I'm thinking of buying a houseboat to live on, and just stopping paying taxes altogether.

the added benefit will be that when the oceans all rise 97ft and flood all us land dwellers, you'll still be floating. :)

  • Like 2

Share this post


Link to post
Share on other sites

I was curious, and now that this thread popped up.. 

Can me and the wife file separately, and each claim 10k in SALT? Of course we wouldnt claim the same deductions twice. I can file the property tax cause my state taxes are cheaper, and she would just deduct her own state taxes.

Share this post


Link to post
Share on other sites
8 hours ago, 1LtCAP said:

the added benefit will be that when the oceans all rise 97ft and flood all us land dwellers, you'll still be floating. :)

Sweet, I never thought of that!

The only thing that scares me is that it seems like every time someone gets a boat all their guns fall overboard. If I still owned any guns, I'd be worried.

Share this post


Link to post
Share on other sites
7 hours ago, JackDaWack said:

I was curious, and now that this thread popped up.. 

Can me and the wife file separately, and each claim 10k in SALT? Of course we wouldnt claim the same deductions twice. I can file the property tax cause my state taxes are cheaper, and she would just deduct her own state taxes.

You have each your own state?  If what you mean is one of you work in a different state there is no arbitrage in state tax differences.   You always owe state income tax tobyhe state that employs you but additionally the state you live in wants taxes too.   You don’t double pay state tax because the line in the NJ state return would credit you for “taxes paid to other jurisdictions.”

Share this post


Link to post
Share on other sites

I am now up to three instances where a person is disappointed by their turbo tax number for 2018.   I clearly showed them that their total tax liability for 2018 was lower than 2017 but did not like that it came in the form of a higher paycheck and  not more money at refund time.  This is crazy to think this way.

And people are freaking out because the child exemption line is now zero.  It’s gone in 2018.  And turbo tax summary page will show 16k for personal exemption and 2018 is zero.   “What happened to my $16k deduction?”    Then I have to explain again that under AMT just because you said 4 people was in the household didn’t mean you got a tax  break for it.  

But in all 3 cases Trump wins,   Lower total  tax vs 2017.   Average was about $6 grand difference. 

Share this post


Link to post
Share on other sites
1 hour ago, Barms said:

I am now up to three instances where a person is disappointed by their turbo tax number for 2018.   I clearly showed them that their total tax liability for 2018 was lower than 2017 but did not like that it came in the form of a higher paycheck and  not more money at refund time.  This is crazy to think this way.

And people are freaking out because the child exemption line is now zero.  It’s gone in 2018.  And turbo tax summary page will show 16k for personal exemption and 2018 is zero.   “What happened to my $16k deduction?”    Then I have to explain again that under AMT just because you said 4 people was in the household didn’t mean you got a tax  break for it.  

But in all 3 cases Trump wins,   Lower total  tax vs 2017.   Average was about $6 grand difference. 

do you remind them that the bigger their return is that that is that much more money they lent to the govt interest free?

Share this post


Link to post
Share on other sites
1 hour ago, Barms said:

But in all 3 cases Trump wins,   Lower total  tax vs 2017.   Average was about $6 grand difference. 

I'd like to know what their income levels and Sch A numbers look like. You just can't generalize, as there are too many variables.

My taxes are UP $5K from last year, primarily from SALT and loss of personal exemption. That's NOT a win.

Share this post


Link to post
Share on other sites

This is a good thread, as most people are clueless and just assume because the Lame Stream media tells them something it is true.  As the OP stated it is stupid to look at your refund, look at the total taxes paid.  Anyone that actually gets a refund should adjust their withholding's so that they owe money come April 15th.  If you get a refund it means you made an interest free loan the to government.  Just ask yourself if the government sent you a letter asking for an interest free loan you would laugh and tell them to go F themselves - so why do it on your own when they don't ask.

  • Like 1
  • Agree 1
  • Informative 1

Share this post


Link to post
Share on other sites

My goal is alway to owe just below the threshold that triggers a penalty.

In my case it means I have to withhold extra every pay check and still write a check at the end of the year. I wish it was because we make a lot of money; it's not, it's the joy of being DINKS.

Honest a God, once in while I would appreciate a reach around. Or at least not being vilified.

When the tax bill was passed I ran some rough numbers and it should be a wash. We'll see.

Share this post


Link to post
Share on other sites
18 hours ago, 1LtCAP said:

do you remind them that the bigger their return is that that is that much more money they lent to the govt interest free?

Nobody understands that except us quarterly types. “ it’s not a gift” and “ wouldn’t you be better off investing that money every paycheck?”

I’m waiting on a few documents still, but im interested to see how we make out. I’m an Llc, she is an employee.

Share this post


Link to post
Share on other sites
On 1/28/2019 at 9:48 PM, Sniper said:

I'd like to know what their income levels and Sch A numbers look like. You just can't generalize, as there are too many variables.

My taxes are UP $5K from last year, primarily from SALT and loss of personal exemption. That's NOT a win.

Interesting:   And your Adjusted Gross Income is about the same as last year?   And you were NOT AMT last year?    And your TOTAL tax liability is $5k higher?   You are re the first one I know.   Im dying to know your details income, salt; number of kids (don’t post or course)  It could only be a freak combination of literally you were just under the $183k AMT lower band and have like 3+ kids.    But still, the idea was supposed to be lower marginal brackets in 2018 would account for loss of exemptions   Im sorry Sniper  I want everybody to win  

 

Share this post


Link to post
Share on other sites
On 1/29/2019 at 3:57 PM, Zeke said:

Nobody understands that except us quarterly types. “ it’s not a gift” and “ wouldn’t you be better off investing that money every paycheck?”

I’m waiting on a few documents still, but im interested to see how we make out. I’m an Llc, she is an employee.

I’ve given up on this completely.  In the one case where he owed $9k in 2018,  he owed   $7k in 2017.  But he’s paying $4000 less in total tax.  I said “you won”. He said “I’m going to tell my employer to hold back another $110 each paycheck”.    

This is what people focus on.  I won’t judge.  

  • Haha 1

Share this post


Link to post
Share on other sites
19 minutes ago, Barms said:

Interesting:   And your Adjusted Gross Income is about the same as last year?   And you were NOT AMT last year?    And your TOTAL tax liability is $5k higher?   You are re the first one I know.   Im dying to know your details income, salt; number of kids (don’t post or course)  It could only be a freak combination of literally you were just under the $183k AMT lower band and have like 3+ kids.  

Adjusted gross was up a little from last year, no AMT and no kids, just me and wifey (I wish I could claim the dog). Nothing else out of normal.

Share this post


Link to post
Share on other sites

I’m running numbers again   Itemized for married now is $24k.  I know over &200k income is automatic AMT.   so let’s do  $150k. That’s $9k state tax.  Let’s say $9k porpeety that &18.   Of family of 4 that’s &16.  So 32k deductions vs $24k standard.   &10k At 25% or whatever.  That’s a $2500 extra.   Anything lower incomes then standard kicks in and go higher you’re AMT and most certainly should win. 

I means if someone is a &20k property tax guy but has an income lower than AMT level, yeah I guess you can get hit.  But how you’re surviving that salary versus property tax ratio then god bless.   Maybe four kids crushes it?   I haven’t dissected the exemptions effect.  I only really know the itemized effects  

 

Share this post


Link to post
Share on other sites
10 minutes ago, Sniper said:

Adjusted gross was up a little from last year, no AMT and no kids, just me and wifey (I wish I could claim the dog). Nothing else out of normal.

I won’t feel comfortable prying anymore about this than this: So  exemptions was $8k then last year.  That means you got over $16k in salt before you breach $24k standard.   $5k more in total tax is like $25k “more” income (or less deductions).  Do you pay like $30k in property taxes?   Don’t answer that!   And no windfalls from stock gains or anything?    This is weird. 

Share this post


Link to post
Share on other sites
10 minutes ago, Barms said:

I won’t feel comfortable prying anymore about this than this: So  exemptions was $8k then last year.  That means you got over $16k in salt before you breach $24k standard.   $5k more in total tax is like $25k “more” income (or less deductions).

You're forgetting to add any medical, charity or mortgage interest into the equation. SALT is like 15K, so that's 5K gone plus the 8K gone.

Share this post


Link to post
Share on other sites
9 hours ago, Barms said:

I’ve given up on this completely.  In the one case where he owed $9k in 2018,  he owed   $7k in 2017.  But he’s paying $4000 less in total tax.  I said “you won”. He said “I’m going to tell my employer to hold back another $110 each paycheck”.    

This is what people focus on.  I won’t judge.  

while i whine and bitch and moan when my accountant tells me what i owe.......i don't like lending them money interest free. now on the other hand if i were to get a refund with something good.....like say......8-10% interest.....then i'd be happy to let em borrow that money.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.



×
×
  • Create New...