Are most of you seeing drastic changes in your tax refund this year?

[Ranger Dan]

I changed jobs and that threw in a couple of new variables, but we have gone from a refund of a couple grand, to paying in a couple. I’ve seen on the news that a ceiling on the property tax credit is impacting some, but we aren’t in a crazy high property tax area (as opposed to NJ). We are just getting the standard deduction this year, as opposed itemized deductions.

Not a political post, just trying to gauge whether we should pay someone to look at our taxes to see what we may be missing.

 

[sluggo72]

I changed jobs and that threw in a couple of new variables, but we have gone from a refund of a couple grand, to paying in a couple. I’ve seen on the news that a ceiling on the property tax credit is impacting some, but we aren’t in a crazy high property tax area (as opposed to NJ). We are just getting the standard deduction this year, as opposed itemized deductions.

Not a political post, just trying to gauge whether we should pay someone to look at our taxes to see what we may be missing.

refund? What was your total tax in 17 compared to 18? more or less? just asking.

 

[Ranger Dan]

refund? What was your total tax in 17 compared to 18? more or less? just asking.

I’m not sure why tha5 is relevant...

 

[The Spin Meister]

I’m not sure why tha5 is relevant...

Because it depends on how much was withheld through out the year. Your new employer may have not taken as much out as the prior one. And did the new job pay more, bumping you into a higher bracket? Any kids drop off the deductions?

What matters most is the total tax owed, not what the refund/payment would be.

 

[Sharkies]

I’m not sure why tha5 is relevant...

Jesus -- seriously? Your refund literally means absolutely nothing. It is a function of how much you overpaid (or underpaid) taxes during the prior year. Only your total tax matters. Refund size means absolutely jack shit!

 

[Sharkies]

Jesus -- seriously? Your refund literally means absolutely nothing. It is a function of how much you overpaid (or underpaid) taxes during the prior year. Only your total tax matters. Refund size means absolutely jack shit!

BTW I'm under 30 years old and understand this concept - how do you not?

 

[nitlion93]

My total required tax stayed about the same as 2017 even though my 23 year old college grad couldn’t be claimed this year. We filed jointly with no major changes to income or itemized deductions. The joint standardized deduction was much higher than our itemized amount mainly due to the cap limit to state income and property taxes.

My biggest problem was that I waited several months to change my W4 to 1 so about $3000 less was taken out which resulted in me having to owe about $1100.

 

[LemonEars]

My refund is less this year but my total tax paid to the US Govt is significantly less. I'm a happy camper.

 

[nitlion93]

My biggest complaint is that our charitable contributions no longer benefit our return. I donate for other reasons, but I can see some people really reducing their charitable contributions because they will not get the tax benefit.

 

[artsandletters]

Jesus -- seriously? Your refund literally means absolutely nothing. It is a function of how much you overpaid (or underpaid) taxes during the prior year. Only your total tax matters. Refund size means absolutely jack shit!

How about deductions, those in place and those removed ? Do they mean jack shit even though they affect your payment or refund and have nothing to do with what you paid in or didn’t?

 

[LoyalandTrueLion]

I’m not sure why tha5 is relevant...

Are you an adult?

 

[artsandletters]

My total required tax stayed about the same as 2017 even though my 23 year old college grad couldn’t be claimed this year. We filed jointly with no major changes to income or itemized deductions. The joint standardized deduction was much higher than our itemized amount mainly due to the cap limit to state income and property taxes.

My biggest problem was that I waited several months to change my W4 to 1 so about $3000 less was taken out which resulted in me having to owe about $1100.

Please explain to sharkies how the loss of your son as a dependent affected your return.

 

[RussianEagle]

My biggest complaint is that our charitable contributions no longer benefit our return. I donate for other reasons, but I can see some people really reducing their charitable contributions because they will not get the tax benefit.

I agree with the decision raising the standard deduction. It can’t be efficient to have some government bean counter being paid taxpayer money to determine if a family making $60,000 gave only $1000 to their church as opposed to $2000.

 

[artsandletters]

My refund is less this year but my total tax paid to the US Govt is significantly less. I'm a happy camper.

What you’re saying is that you added to the 2 trillion growth in the deficit.

 

[MontereyLion]

My biggest complaint is that our charitable contributions no longer benefit our return. I donate for other reasons, but I can see some people really reducing their charitable contributions because they will not get the tax benefit.

That is the one thing that I really hate about the new tax law. Everyone should be able to deduct charitable giving. Even those that don't itemize. Changing that part of the law is really going to hurt giving, moving forward.

 

[psuro]

I still claim all of you mooks as dependents. So I should be ok.

 

[BrucePa]

Same job, same pay, but more tax in 2018.

I don't care if you're political or not, but trickle down never worked. Millionaires and billionaires are paying less tax than me right now.

 

[psualt]

I changed jobs and that threw in a couple of new variables, but we have gone from a refund of a couple grand, to paying in a couple. I’ve seen on the news that a ceiling on the property tax credit is impacting some, but we aren’t in a crazy high property tax area (as opposed to NJ). We are just getting the standard deduction this year, as opposed itemized deductions.

Not a political post, just trying to gauge whether we should pay someone to look at our taxes to see what we may be missing.

I think I may have stated on previous posts I expected taxpayers refunds to go down. Most employers were advised to have their employees complete new W-4s. In the past, people were unfamiliar with this form and based on prior jobs, family or unreliable sources would fill it out and get too much money withheld. If you don't have significant alternative sources of income and a spouse that doesn't work, filling a new W-4 out in 2018 should get your liability pretty close to the actual amount due. I have also seen many instances where employees on commission who have very moderate normal pays and large incentive may also end up with less withholding.

 

[psuro]

What I have seen reported so far is about 8.4 percent reduction across the board. I should be doing my taxes soon, so I will find out in the next couple of weeks what it is.

 

[drblue1977]

That is the one thing that I really hate about the new tax law. Everyone should be able to deduct charitable giving. Even those that don't itemize. Changing that part of the law is really going to hurt giving, moving forward.

You should not have to pay taxes on your taxes! The deduction limit was not thought out.........at all! Another reason to .......not like that feckless Paul Ryan.

 

[LemonEars]

Same job, same pay, but more tax in 2018.

I don't care if you're political or not, but trickle down never worked. Millionaires and billionaires are paying less tax than me right now.

You must be in a very unusual tax situation for this to be true. Everyone I know is paying lower taxes in 2018. The standard deduction is up, the child tax credit is up, and tax rates are lower. Can you explain why your taxes went up so the rest of us can avoid your situation? The only explanation I can think of is that you have hundreds of thousands of dollars in income and you are in a high tax state (California, NY, etc.) and can't deduct all your state taxes.

 

[fairgambit]

BTW I'm under 30 years old and understand this concept - how do you not?

Under 30? And you post on this board? I thought you needed an AARP membership just to sign up.

Some of the board regulars. (I am not in the photo.)

.

 

[jshell65]

Taxable income a little higher this year. Taxes owed a little less this year. Refund substantially smaller this year due to the changes that were made to withholding this year. My refund was far too large the last few years and actually is now closer to what is should be.

 

[bdgan]

I changed jobs and that threw in a couple of new variables, but we have gone from a refund of a couple grand, to paying in a couple. I’ve seen on the news that a ceiling on the property tax credit is impacting some, but we aren’t in a crazy high property tax area (as opposed to NJ). We are just getting the standard deduction this year, as opposed itemized deductions.

Not a political post, just trying to gauge whether we should pay someone to look at our taxes to see what we may be missing.

Look at your total tax for 2018, not just the amount of refund. Also make sure that Is your income is comparable.

Here's the bottom line. Tax rates were cut by 3% for just about everybody. Child credits were also increased. The only way a person can possibly be paying more in taxes is if the value of lost deductions exceeded the value of a higher standard deduction + lower tax rates.

 

[psualt]

Same job, same pay, but more tax in 2018.

I don't care if you're political or not, but trickle down never worked. Millionaires and billionaires are paying less tax than me right now.

Something doesn't sound right here. You might want to look into it more closely.

 

[Pardlion]

That is the one thing that I really hate about the new tax law. Everyone should be able to deduct charitable giving. Even those that don't itemize. Changing that part of the law is really going to hurt giving, moving forward.

All you have to do is give enough to charity to justify itemizing your deductions.

 

[sluggo72]

What I have seen reported so far is about 8.4 percent reduction across the board. I should be doing my taxes soon, so I will find out in the next couple of weeks what it is.

reductions in refunds. The question is though, did you pay more taxes in 18 than 17? that is the key.

 

[klive]

I actually went from paying in a couple grand to getting a couple grand refund this year. Was my own fault for not having the proper withholding set. I got fed up with paying in so used the HR Block tax estimator last year to estimate my earnings, taxes, filing status and adjusted withholding for the 2018 year so I could be sure i wouldn't owe again. The estimate came within a few hundred bucks (actually got a little more refund than the HRB estimate). I'd recommend doing the estimate every year if you can.

 

[jim cummings]

A good accountant is worth their weight in gold. Find the lone wolf CPA.. it won’t cost more than a trip to H&R Block.

 

[Achowalogan]

Number you want to look at is effective tax rate % - it will most likely be lower for 2018

 

[psualt]

A good accountant is worth their weight in gold. Find the lone wolf CPA.. it won’t cost more than a trip to H&R Block.

Here is an example of HRB....taxpayer makes under $20K per year. One W-2, child tax credit. Takes less than 15 minutes total. HRB charged $479 last year. It was highway robbery. The kicker...I did this as a favor to a client in 2016 and she never brought it back. I'm missing out on some easy money apparently but have to assume I will make it back somewhere else for doing the right thing.

 

[JayWye]

I changed jobs and that threw in a couple of new variables, but we have gone from a refund of a couple grand, to paying in a couple. I’ve seen on the news that a ceiling on the property tax credit is impacting some, but we aren’t in a crazy high property tax area (as opposed to NJ). We are just getting the standard deduction this year, as opposed itemized deductions.

Not a political post, just trying to gauge whether we should pay someone to look at our taxes to see what we may be missing.

Employers have been withholding less in 2018 due to the new tax bill. Look at your year-over-year income and withholding/estimated tax payments...you'll probably find your answers there.

 

[sluggo72]

Here is an example of HRB....taxpayer makes under $20K per year. One W-2, child tax credit. Takes less than 15 minutes total. HRB charged $479 last year. It was highway robbery. The kicker...I did this as a favor to a client in 2016 and she never brought it back. I'm missing out on some easy money apparently but have to assume I will make it back somewhere else for doing the right thing.

wow

 

[MontereyLion]

All you have to do is give enough to charity to justify itemizing your deductions.

What about the millions of Americans that want to give AND get the tax advantage but can't afford to give thousands to charity? Is it fair that the well to do get the tax advantage and those not so well off don't? Plus look at the charities that will miss out on the additional giving such a tax law would encourage.

 

[Pardlion]

What about the millions of Americans that want to give AND get the tax advantage but can't afford to give thousands to charity? Is it fair that the well to do get the tax advantage and those not so well off don't? Plus look at the charities that will miss out on the additional giving such a tax law would encourage.

Then take your tax savings and give it to charity.

 

[Cosmos]

I changed jobs and that threw in a couple of new variables, but we have gone from a refund of a couple grand, to paying in a couple. I’ve seen on the news that a ceiling on the property tax credit is impacting some, but we aren’t in a crazy high property tax area (as opposed to NJ). We are just getting the standard deduction this year, as opposed itemized deductions.

Not a political post, just trying to gauge whether we should pay someone to look at our taxes to see what we may be missing.

My tax amount, in relation to both AGI and taxable income, went down approximately 5%. As for refund, we never get one. Why give the gov't. and interest-free loan? So I always under withhold. But this year I overshot on our withholdings estimate and now must pay twice as much as we usually do. In fact, we came in just under the penalty threshold of 15% (amount owed vs. tax).

Bottom line, tax rates went down for us normal, working stiffs. And everybody review your W4s and adjust your withholdings, accordingly. The IRS provides a free withholdings calculator. Use it.

 

[scottpsurules]

My biggest complaint is that our charitable contributions no longer benefit our return. I donate for other reasons, but I can see some people really reducing their charitable contributions because they will not get the tax benefit.

Yup unintended consequences. As most people are now, upon filing, just coming to that realization the negative impact on charitable giving in 19 is going to be huge.

 

[scottpsurules]

Look at your total tax for 2018, not just the amount of refund. Also make sure that Is your income is comparable.

Here's the bottom line. Tax rates were cut by 3% for just about everybody. Child credits were also increased. The only way a person can possibly be paying more in taxes is if the value of lost deductions exceeded the value of a higher standard deduction + lower tax rates.

Exactly correct and unfortunately is my situation, it is a tax increase for me.

 

[tboyer]

I think people in high property tax areas are going to feel significant pain -- their taxes go up significantly but worse, their houses are worth less. But I guess that was the intent -- punish NY and NJ for being blue

 

[Cosmos]

Then take your tax savings and give it to charity.

Exactly! The tax code shouldn't get in the way of giving to charity. I know, I know. The tax code is written to change human behavior. It's purposely convoluted. That's why it's difficult to discuss without getting mired in politics. Because the tax code is political. For example, why should I have to pay more taxes in order for "you" to have children. It's not fair in the Darwinian sense. And before this devolves into a political argument we'd do well to remember who is responsible for our declining middle class. That is to say, why we are getting poorer and what's causing us to fight over table scraps. Hint: manufacturing jobs. Republican or Democrat we are all on the same side here. Or should be.