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Is anyone paying their property tax early because of new tax bill?
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bunnyluck
LIF Adult
Member since 1/14 3196 total posts
Name:
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Re: Is anyone paying their property tax early because of new tax bill?
Posted by hope123
Posted by bunnyluck
Nope. We pay AMT so no point. We'll probably break even under the new plan or come close one way or the other. It is what it is.
This is my understanding also about AMT. However, I am hearing that some people who pay AMT are able to take advantage of pre paying but I can’t understand how. I have been doing my own taxes past few years because my tax guy made a same stupid mistake on our return two years in a row. We pay AMT too and I am in a dilemma as to pre pay or not. I don’t really have a tax person to ask and I don’t want to go to someone new as I am sure they are all busy. This is so annoying that it’s happening in the last week of the year and there is not enough time to research it and mail the payment in time.
I think because the AMT exemption amount is changing so if you are on the cusp you may not have to pay it in the new plan. That's why it could make sense to prepay for some people who currently pay AMT but won't under new AMT rules. You get no advantage of prepayment if you'll pay AMT because state and local taxes are nondeductible for AMT. You have to add it back.
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Posted 12/27/17 5:00 PM  |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Is anyone paying their property tax early because of new tax bill?
Posted by Chai77
Posted by ave1024
Posted by ChristinaM128
Posted by FTM427
Posted by Chai77
I hope you Trump supporters are happy.
It wasn't just Trump writing the new tax code...both Democrats and Republicans voted yes to it. Also have you done any research into your specific tax scenario? while there is a 10k cap for this item....there are other things which end up benefiting. Yes while it does seem that this directly affects blue states (tend to be high income/high taxes) myself personally I'll actually be saving several thousand dollars even though this dedication is now capped.
You may save now, but look at the projections for 10 years down the road. This governing body we have in office now will always favor corporate and the very wealthy over anyone else. Just wool over eyes for now.
Depends on what you clarify “very wealthy” is. Do you really think Bernie Sanders would have been a better option? He wanted to eliminate the FICA cap for people who make over 115k a year (or whatever the number is). Personally I hope he goes senile before he can run again.
Yes, I really think Bernie Sanders would have been a better option. AbsoEFFINGlutely. Why do you hope he goes senile before he can run again- scared?
Yeah definitely scared of his liberal thinking. Take somebody who makes 140k a year. Right now FICA cap is 127,400 (they had a large increase to this last year). If Sanders eliminates this cap, that is an extra 6.2% of tax on the 12,600 in this example. An extra $781.20 in taxes! If somebody makes 160k, that's an extra $2021.20 in taxes! Nevermind all the other crazy stuff he proposed, this one sticks out to me the most.
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| Posted 12/27/17 6:02 PM |
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Chai77
Brighter days ahead
Member since 4/07 7364 total posts
Name:
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Re: Is anyone paying their property tax early because of new tax bill?
Posted by ave1024
Posted by Chai77
Posted by ave1024
Posted by ChristinaM128
Posted by FTM427
Posted by Chai77
I hope you Trump supporters are happy.
It wasn't just Trump writing the new tax code...both Democrats and Republicans voted yes to it. Also have you done any research into your specific tax scenario? while there is a 10k cap for this item....there are other things which end up benefiting. Yes while it does seem that this directly affects blue states (tend to be high income/high taxes) myself personally I'll actually be saving several thousand dollars even though this dedication is now capped.
You may save now, but look at the projections for 10 years down the road. This governing body we have in office now will always favor corporate and the very wealthy over anyone else. Just wool over eyes for now.
Depends on what you clarify “very wealthy” is. Do you really think Bernie Sanders would have been a better option? He wanted to eliminate the FICA cap for people who make over 115k a year (or whatever the number is). Personally I hope he goes senile before he can run again.
Yes, I really think Bernie Sanders would have been a better option. AbsoEFFINGlutely. Why do you hope he goes senile before he can run again- scared?
Yeah definitely scared of his liberal thinking. Take somebody who makes 140k a year. Right now FICA cap is 127,400 (they had a large increase to this last year). If Sanders eliminates this cap, that is an extra 6.2% of tax on the 12,600 in this example. An extra $781.20 in taxes! If somebody makes 160k, that's an extra $2021.20 in taxes! Nevermind all the other crazy stuff he proposed, this one sticks out to me the most.
Yeah, and we would also not be spending $$$ on sky high health insurance premiums. Bernie Sanders and other progressives want to support the middle class for a change, instead of the damn top income earners hoarding even more of the $$ in this country. Bernie 2020 sounds great to me.
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| Posted 12/27/17 8:46 PM |
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Re: Is anyone paying their property tax early because of new tax bill?
Posted by ave1024
Posted by Chai77
Posted by ave1024
Posted by ChristinaM128
Posted by FTM427
Posted by Chai77
I hope you Trump supporters are happy.
It wasn't just Trump writing the new tax code...both Democrats and Republicans voted yes to it. Also have you done any research into your specific tax scenario? while there is a 10k cap for this item....there are other things which end up benefiting. Yes while it does seem that this directly affects blue states (tend to be high income/high taxes) myself personally I'll actually be saving several thousand dollars even though this dedication is now capped.
You may save now, but look at the projections for 10 years down the road. This governing body we have in office now will always favor corporate and the very wealthy over anyone else. Just wool over eyes for now.
Depends on what you clarify “very wealthy” is. Do you really think Bernie Sanders would have been a better option? He wanted to eliminate the FICA cap for people who make over 115k a year (or whatever the number is). Personally I hope he goes senile before he can run again.
Yes, I really think Bernie Sanders would have been a better option. AbsoEFFINGlutely. Why do you hope he goes senile before he can run again- scared?
Yeah definitely scared of his liberal thinking. Take somebody who makes 140k a year. Right now FICA cap is 127,400 (they had a large increase to this last year). If Sanders eliminates this cap, that is an extra 6.2% of tax on the 12,600 in this example. An extra $781.20 in taxes! If somebody makes 160k, that's an extra $2021.20 in taxes! Nevermind all the other crazy stuff he proposed, this one sticks out to me the most.
I would very happily pay an extra $2000k for universal healthcare. In fact, I would happily pay double that, actually triple. I would still be saving a shit ton of $ on medical expenses.
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| Posted 12/27/17 9:21 PM |
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Chai77
Brighter days ahead
Member since 4/07 7364 total posts
Name:
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Re: Is anyone paying their property tax early because of new tax bill?
Posted by LastLightGlow
Posted by ave1024
Posted by Chai77
Posted by ave1024
Posted by ChristinaM128
Posted by FTM427
Posted by Chai77
I hope you Trump supporters are happy.
It wasn't just Trump writing the new tax code...both Democrats and Republicans voted yes to it. Also have you done any research into your specific tax scenario? while there is a 10k cap for this item....there are other things which end up benefiting. Yes while it does seem that this directly affects blue states (tend to be high income/high taxes) myself personally I'll actually be saving several thousand dollars even though this dedication is now capped.
You may save now, but look at the projections for 10 years down the road. This governing body we have in office now will always favor corporate and the very wealthy over anyone else. Just wool over eyes for now.
Depends on what you clarify “very wealthy” is. Do you really think Bernie Sanders would have been a better option? He wanted to eliminate the FICA cap for people who make over 115k a year (or whatever the number is). Personally I hope he goes senile before he can run again.
Yes, I really think Bernie Sanders would have been a better option. AbsoEFFINGlutely. Why do you hope he goes senile before he can run again- scared?
Yeah definitely scared of his liberal thinking. Take somebody who makes 140k a year. Right now FICA cap is 127,400 (they had a large increase to this last year). If Sanders eliminates this cap, that is an extra 6.2% of tax on the 12,600 in this example. An extra $781.20 in taxes! If somebody makes 160k, that's an extra $2021.20 in taxes! Nevermind all the other crazy stuff he proposed, this one sticks out to me the most.
I would very happily pay an extra $2000k for universal healthcare. In fact, I would happily pay double that, actually triple. I would still be saving a shit ton of $ on medical expenses.
YUP. Me too. Absolutely, gladly.
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| Posted 12/27/17 10:01 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Is anyone paying their property tax early because of new tax bill?
The new tax bill will benefit accountants 
Message edited 12/28/2017 1:40:57 AM.
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| Posted 12/28/17 1:40 AM |
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FTM427
LIF Adult
Member since 1/12 1261 total posts
Name:
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Re: Is anyone paying their property tax early because of new tax bill?
Posted by LSP2005
Ftm427 for most people who live in blue states that make between 90-200k this bill will hurt them. Yes, this year you will get a lower tax bill but in a few years individual income taxes will increase. Business taxes are perminantely lowered. The GOP did not conference with any democrats. They rammed this bill down in less than a month. A typical tax bill taxes years to negotiate. years with both parties giving input. The republicans did not ask for and actively kept democrats out of the negotiating process.
For an average LI family of 4 you loose the personal exemption of 16,400, plus the 12,000 standard deduction. You loose the state taxes you pay in your paycheck. You loose if you have a high property tax bill. If your state taxes plus property taxes are more than 10,000 you loose all of that money. By loosing all of that money, unless you are paying 14,000 + in mortgage interest you loose your mortgage interest deduction too. Oh and charities will suffer because people are taking the standard over the itemized so kiss the $3000 in deductions for that goodbye too.
Your income most likely is not pass through income either.
The thing is, I would be fine if the tax increase went to infrustructure, education, or healthcare, but this bill is giving money to the ultra wealthy at the expense of you and me. The sad thing is that you are so busy defending your team to understand the actual effects of this bill because you think you won, but you lost and so did almost everyone else.
The only thing I'm defending is that people seem to be focusing on one aspect without looking at the big picture. Everyone is in such a rush to hand over thousands of dollars to the town & county and I was just curious if they really knew if it was in their best interest to do so given the standard deduction is increasing so much.
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| Posted 12/28/17 4:10 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Is anyone paying their property tax early because of new tax bill?
Posted by FTM427
Posted by LSP2005
Ftm427 for most people who live in blue states that make between 90-200k this bill will hurt them. Yes, this year you will get a lower tax bill but in a few years individual income taxes will increase. Business taxes are perminantely lowered. The GOP did not conference with any democrats. They rammed this bill down in less than a month. A typical tax bill taxes years to negotiate. years with both parties giving input. The republicans did not ask for and actively kept democrats out of the negotiating process.
For an average LI family of 4 you loose the personal exemption of 16,400, plus the 12,000 standard deduction. You loose the state taxes you pay in your paycheck. You loose if you have a high property tax bill. If your state taxes plus property taxes are more than 10,000 you loose all of that money. By loosing all of that money, unless you are paying 14,000 + in mortgage interest you loose your mortgage interest deduction too. Oh and charities will suffer because people are taking the standard over the itemized so kiss the $3000 in deductions for that goodbye too.
Your income most likely is not pass through income either.
The thing is, I would be fine if the tax increase went to infrustructure, education, or healthcare, but this bill is giving money to the ultra wealthy at the expense of you and me. The sad thing is that you are so busy defending your team to understand the actual effects of this bill because you think you won, but you lost and so did almost everyone else.
The only thing I'm defending is that people seem to be focusing on one aspect without looking at the big picture. Everyone is in such a rush to hand over thousands of dollars to the town & county and I was just curious if they really knew if it was in their best interest to do so given the standard deduction is increasing so much.
Your reasoning for not doing it (standard deduction increasing so much) is the EXACT reason why you should prepay. You are gaining the tax advantage for your 2017 taxes by prepaying. Standard deduction increases for 2018. For that tax year you would be declaring less real estate taxes since you prepaid but it wouldn’t matter because you took the standard deduction. It’s almost like getting a double benefit or double dip for one year.
Message edited 12/28/2017 8:03:19 AM.
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| Posted 12/28/17 8:02 AM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: Is anyone paying their property tax early because of new tax bill?
Posted by FTM427
Posted by LSP2005
Ftm427 for most people who live in blue states that make between 90-200k this bill will hurt them. Yes, this year you will get a lower tax bill but in a few years individual income taxes will increase. Business taxes are perminantely lowered. The GOP did not conference with any democrats. They rammed this bill down in less than a month. A typical tax bill taxes years to negotiate. years with both parties giving input. The republicans did not ask for and actively kept democrats out of the negotiating process.
For an average LI family of 4 you loose the personal exemption of 16,400, plus the 12,000 standard deduction. You loose the state taxes you pay in your paycheck. You loose if you have a high property tax bill. If your state taxes plus property taxes are more than 10,000 you loose all of that money. By loosing all of that money, unless you are paying 14,000 + in mortgage interest you loose your mortgage interest deduction too. Oh and charities will suffer because people are taking the standard over the itemized so kiss the $3000 in deductions for that goodbye too.
Your income most likely is not pass through income either.
The thing is, I would be fine if the tax increase went to infrustructure, education, or healthcare, but this bill is giving money to the ultra wealthy at the expense of you and me. The sad thing is that you are so busy defending your team to understand the actual effects of this bill because you think you won, but you lost and so did almost everyone else.
The only thing I'm defending is that people seem to be focusing on one aspect without looking at the big picture. Everyone is in such a rush to hand over thousands of dollars to the town & county and I was just curious if they really knew if it was in their best interest to do so given the standard deduction is increasing so much.
Then it is clear to me you do not understand what you are talking about. The reason people are trying to prepay their taxes is not for 2018. People in NY know that this bill will screw them for 2018. We will be stuck with the standard 24k deduction for 2018 as will most people. So in order to make 2017 less painful, by prepaying my 2018 taxes in 2017, this will effect my 2017 taxes and reduce what I will owe by about $2,000. So that is money in my pocket to keep. We are all harmed moving forwards, even if your 2018 taxes look like you will get a small refund, the GOP tax plan is literally designed to remove government services and to sunset so the miniscule benefit you get for 2018 disappears but the big business ones stay. So if you are ok with having the goverment raid social services to give multi billionaires more money at your expense, that is what is going to happen because of this new law.
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| Posted 12/28/17 9:03 AM |
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Re: Is anyone paying their property tax early because of new tax bill?
Posted by FTM427
Posted by LSP2005
Ftm427 for most people who live in blue states that make between 90-200k this bill will hurt them. Yes, this year you will get a lower tax bill but in a few years individual income taxes will increase. Business taxes are perminantely lowered. The GOP did not conference with any democrats. They rammed this bill down in less than a month. A typical tax bill taxes years to negotiate. years with both parties giving input. The republicans did not ask for and actively kept democrats out of the negotiating process.
For an average LI family of 4 you loose the personal exemption of 16,400, plus the 12,000 standard deduction. You loose the state taxes you pay in your paycheck. You loose if you have a high property tax bill. If your state taxes plus property taxes are more than 10,000 you loose all of that money. By loosing all of that money, unless you are paying 14,000 + in mortgage interest you loose your mortgage interest deduction too. Oh and charities will suffer because people are taking the standard over the itemized so kiss the $3000 in deductions for that goodbye too.
Your income most likely is not pass through income either.
The thing is, I would be fine if the tax increase went to infrustructure, education, or healthcare, but this bill is giving money to the ultra wealthy at the expense of you and me. The sad thing is that you are so busy defending your team to understand the actual effects of this bill because you think you won, but you lost and so did almost everyone else.
The standard deduction
The only thing I'm defending is that people seem to be focusing on one aspect without looking at the big picture. Everyone is in such a rush to hand over thousands of dollars to the town & county and I was just curious if they really knew if it was in their best interest to do so given the standard deduction is increasing so much.
the standard deduction is increasing but they are taking away personal exemptions. Even without losing the salt deduction my taxable income will be going up $16000. I think a lot of people are focusing so much on the increased standard deduction they aren’t realizing it’s not much more than what they had with the standard deduction plus exemptions. I know I’m going to be paying more but the reductions some people are going to get are a lot less than they expected.
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| Posted 12/28/17 11:12 AM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: Is anyone paying their property tax early because of new tax bill?
All I know is we owe every.single.year since DH retired.
It's ridiculous.
We have both started claiming 0 to have more withheld and we still owed.
DH started paying estimated taxes quarterly to avoid having to owe so much at the end.
I can't imagine owing more. I'm scared to see what next year brings.
The only thing that might save us is our property taxes aren't that high and DH doesn't pay state tax only I do. So who knows....
Message edited 12/28/2017 11:18:02 AM.
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| Posted 12/28/17 11:16 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Is anyone paying their property tax early because of new tax bill?
Posted by haveaquestion
Posted by FTM427
Posted by LSP2005
Ftm427 for most people who live in blue states that make between 90-200k this bill will hurt them. Yes, this year you will get a lower tax bill but in a few years individual income taxes will increase. Business taxes are perminantely lowered. The GOP did not conference with any democrats. They rammed this bill down in less than a month. A typical tax bill taxes years to negotiate. years with both parties giving input. The republicans did not ask for and actively kept democrats out of the negotiating process.
For an average LI family of 4 you loose the personal exemption of 16,400, plus the 12,000 standard deduction. You loose the state taxes you pay in your paycheck. You loose if you have a high property tax bill. If your state taxes plus property taxes are more than 10,000 you loose all of that money. By loosing all of that money, unless you are paying 14,000 + in mortgage interest you loose your mortgage interest deduction too. Oh and charities will suffer because people are taking the standard over the itemized so kiss the $3000 in deductions for that goodbye too.
Your income most likely is not pass through income either.
The thing is, I would be fine if the tax increase went to infrustructure, education, or healthcare, but this bill is giving money to the ultra wealthy at the expense of you and me. The sad thing is that you are so busy defending your team to understand the actual effects of this bill because you think you won, but you lost and so did almost everyone else.
The standard deduction
The only thing I'm defending is that people seem to be focusing on one aspect without looking at the big picture. Everyone is in such a rush to hand over thousands of dollars to the town & county and I was just curious if they really knew if it was in their best interest to do so given the standard deduction is increasing so much.
the standard deduction is increasing but they are taking away personal exemptions. Even without losing the salt deduction my taxable income will be going up $16000. I think a lot of people are focusing so much on the increased standard deduction they aren’t realizing it’s not much more than what they had with the standard deduction plus exemptions. I know I’m going to be paying more but the reductions some people are going to get are a lot less than they expected.
All of the higher tax brackets are being reduced 3-4% and child credits are increasing If you have kids. AMT is also being reduced. There are other ways to make up the money, it’s not just standard deduction.
Message edited 12/28/2017 12:44:58 PM.
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| Posted 12/28/17 12:44 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: Is anyone paying their property tax early because of new tax bill?
Posted by ave1024
Posted by haveaquestion
Posted by FTM427
Posted by LSP2005
Ftm427 for most people who live in blue states that make between 90-200k this bill will hurt them. Yes, this year you will get a lower tax bill but in a few years individual income taxes will increase. Business taxes are perminantely lowered. The GOP did not conference with any democrats. They rammed this bill down in less than a month. A typical tax bill taxes years to negotiate. years with both parties giving input. The republicans did not ask for and actively kept democrats out of the negotiating process.
For an average LI family of 4 you loose the personal exemption of 16,400, plus the 12,000 standard deduction. You loose the state taxes you pay in your paycheck. You loose if you have a high property tax bill. If your state taxes plus property taxes are more than 10,000 you loose all of that money. By loosing all of that money, unless you are paying 14,000 + in mortgage interest you loose your mortgage interest deduction too. Oh and charities will suffer because people are taking the standard over the itemized so kiss the $3000 in deductions for that goodbye too.
Your income most likely is not pass through income either.
The thing is, I would be fine if the tax increase went to infrustructure, education, or healthcare, but this bill is giving money to the ultra wealthy at the expense of you and me. The sad thing is that you are so busy defending your team to understand the actual effects of this bill because you think you won, but you lost and so did almost everyone else.
The standard deduction
The only thing I'm defending is that people seem to be focusing on one aspect without looking at the big picture. Everyone is in such a rush to hand over thousands of dollars to the town & county and I was just curious if they really knew if it was in their best interest to do so given the standard deduction is increasing so much.
the standard deduction is increasing but they are taking away personal exemptions. Even without losing the salt deduction my taxable income will be going up $16000. I think a lot of people are focusing so much on the increased standard deduction they aren’t realizing it’s not much more than what they had with the standard deduction plus exemptions. I know I’m going to be paying more but the reductions some people are going to get are a lot less than they expected.
All of the higher tax brackets are being reduced 3-4% and child credits are increasing If you have kids. AMT is also being reduced. There are other ways to make up the money, it’s not just standard deduction.
The problem with this line of thinking is that those deductions are being phased out because this bill will add over a trillion to the deficit over the next few years. The thing is for most people, by eliminating the standard deduction, by combining state and local taxes with a $10,000 cap will make taking an itemized deduction moot for most. This bill will help those who pay the AMT, but there are penalties there too because of the way they will tax bonuses using vested vs received.
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| Posted 12/28/17 2:06 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Is anyone paying their property tax early because of new tax bill?
Posted by LSP2005
Posted by ave1024
Posted by haveaquestion
Posted by FTM427
Posted by LSP2005
Ftm427 for most people who live in blue states that make between 90-200k this bill will hurt them. Yes, this year you will get a lower tax bill but in a few years individual income taxes will increase. Business taxes are perminantely lowered. The GOP did not conference with any democrats. They rammed this bill down in less than a month. A typical tax bill taxes years to negotiate. years with both parties giving input. The republicans did not ask for and actively kept democrats out of the negotiating process.
For an average LI family of 4 you loose the personal exemption of 16,400, plus the 12,000 standard deduction. You loose the state taxes you pay in your paycheck. You loose if you have a high property tax bill. If your state taxes plus property taxes are more than 10,000 you loose all of that money. By loosing all of that money, unless you are paying 14,000 + in mortgage interest you loose your mortgage interest deduction too. Oh and charities will suffer because people are taking the standard over the itemized so kiss the $3000 in deductions for that goodbye too.
Your income most likely is not pass through income either.
The thing is, I would be fine if the tax increase went to infrustructure, education, or healthcare, but this bill is giving money to the ultra wealthy at the expense of you and me. The sad thing is that you are so busy defending your team to understand the actual effects of this bill because you think you won, but you lost and so did almost everyone else.
The standard deduction
The only thing I'm defending is that people seem to be focusing on one aspect without looking at the big picture. Everyone is in such a rush to hand over thousands of dollars to the town & county and I was just curious if they really knew if it was in their best interest to do so given the standard deduction is increasing so much.
the standard deduction is increasing but they are taking away personal exemptions. Even without losing the salt deduction my taxable income will be going up $16000. I think a lot of people are focusing so much on the increased standard deduction they aren’t realizing it’s not much more than what they had with the standard deduction plus exemptions. I know I’m going to be paying more but the reductions some people are going to get are a lot less than they expected.
All of the higher tax brackets are being reduced 3-4% and child credits are increasing If you have kids. AMT is also being reduced. There are other ways to make up the money, it’s not just standard deduction.
The problem with this line of thinking is that those deductions are being phased out because this bill will add over a trillion to the deficit over the next few years. The thing is for most people, by eliminating the standard deduction, by combining state and local taxes with a $10,000 cap will make taking an itemized deduction moot for most. This bill will help those who pay the AMT, but there are penalties there too because of the way they will tax bonuses using vested vs received.
I am not sure what you mean regarding tax bonuses being different. If a company pays me a $20,000 end of year bonus on top of my salary, that money is not taxed any different than regular income.
Now the employer may decide with withhold additional tax in that bonus paycheck, but the reporting of the income on the W2 is no different for bonus money vs. salaried money. You will just pay whatever tax bracket that money falls under.
Am I missing something?
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| Posted 12/28/17 3:57 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: Is anyone paying their property tax early because of new tax bill?
Posted by ave1024
Posted by LSP2005
Posted by ave1024
Posted by haveaquestion
Posted by FTM427
Posted by LSP2005
Ftm427 for most people who live in blue states that make between 90-200k this bill will hurt them. Yes, this year you will get a lower tax bill but in a few years individual income taxes will increase. Business taxes are perminantely lowered. The GOP did not conference with any democrats. They rammed this bill down in less than a month. A typical tax bill taxes years to negotiate. years with both parties giving input. The republicans did not ask for and actively kept democrats out of the negotiating process.
For an average LI family of 4 you loose the personal exemption of 16,400, plus the 12,000 standard deduction. You loose the state taxes you pay in your paycheck. You loose if you have a high property tax bill. If your state taxes plus property taxes are more than 10,000 you loose all of that money. By loosing all of that money, unless you are paying 14,000 + in mortgage interest you loose your mortgage interest deduction too. Oh and charities will suffer because people are taking the standard over the itemized so kiss the $3000 in deductions for that goodbye too.
Your income most likely is not pass through income either.
The thing is, I would be fine if the tax increase went to infrustructure, education, or healthcare, but this bill is giving money to the ultra wealthy at the expense of you and me. The sad thing is that you are so busy defending your team to understand the actual effects of this bill because you think you won, but you lost and so did almost everyone else.
The standard deduction
The only thing I'm defending is that people seem to be focusing on one aspect without looking at the big picture. Everyone is in such a rush to hand over thousands of dollars to the town & county and I was just curious if they really knew if it was in their best interest to do so given the standard deduction is increasing so much.
the standard deduction is increasing but they are taking away personal exemptions. Even without losing the salt deduction my taxable income will be going up $16000. I think a lot of people are focusing so much on the increased standard deduction they aren’t realizing it’s not much more than what they had with the standard deduction plus exemptions. I know I’m going to be paying more but the reductions some people are going to get are a lot less than they expected.
All of the higher tax brackets are being reduced 3-4% and child credits are increasing If you have kids. AMT is also being reduced. There are other ways to make up the money, it’s not just standard deduction.
The problem with this line of thinking is that those deductions are being phased out because this bill will add over a trillion to the deficit over the next few years. The thing is for most people, by eliminating the standard deduction, by combining state and local taxes with a $10,000 cap will make taking an itemized deduction moot for most. This bill will help those who pay the AMT, but there are penalties there too because of the way they will tax bonuses using vested vs received.
I am not sure what you mean regarding tax bonuses being different. If a company pays me a $20,000 end of year bonus on top of my salary, that money is not taxed any different than regular income.
Now the employer may decide with withhold additional tax in that bonus paycheck, but the reporting of the income on the W2 is no different for bonus money vs. salaried money. You will just pay whatever tax bracket that money falls under.
Am I missing something?
I just saw your reply now, and yes. The new tax laws are changing RSU and PSU taxes. You will now be taxed the day the RSU and PSU are granted (I.e. You get the grant but not the money for X years) so you will be taxed on the money well before you actually receive it, and that might be years away depending upon how your company grants these bonuses. Fun times.
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| Posted 1/1/18 11:49 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Is anyone paying their property tax early because of new tax bill?
Posted by LSP2005
Posted by ave1024
Posted by LSP2005
Posted by ave1024
Posted by haveaquestion
Posted by FTM427
Posted by LSP2005
Ftm427 for most people who live in blue states that make between 90-200k this bill will hurt them. Yes, this year you will get a lower tax bill but in a few years individual income taxes will increase. Business taxes are perminantely lowered. The GOP did not conference with any democrats. They rammed this bill down in less than a month. A typical tax bill taxes years to negotiate. years with both parties giving input. The republicans did not ask for and actively kept democrats out of the negotiating process.
For an average LI family of 4 you loose the personal exemption of 16,400, plus the 12,000 standard deduction. You loose the state taxes you pay in your paycheck. You loose if you have a high property tax bill. If your state taxes plus property taxes are more than 10,000 you loose all of that money. By loosing all of that money, unless you are paying 14,000 + in mortgage interest you loose your mortgage interest deduction too. Oh and charities will suffer because people are taking the standard over the itemized so kiss the $3000 in deductions for that goodbye too.
Your income most likely is not pass through income either.
The thing is, I would be fine if the tax increase went to infrustructure, education, or healthcare, but this bill is giving money to the ultra wealthy at the expense of you and me. The sad thing is that you are so busy defending your team to understand the actual effects of this bill because you think you won, but you lost and so did almost everyone else.
The standard deduction
The only thing I'm defending is that people seem to be focusing on one aspect without looking at the big picture. Everyone is in such a rush to hand over thousands of dollars to the town & county and I was just curious if they really knew if it was in their best interest to do so given the standard deduction is increasing so much.
the standard deduction is increasing but they are taking away personal exemptions. Even without losing the salt deduction my taxable income will be going up $16000. I think a lot of people are focusing so much on the increased standard deduction they aren’t realizing it’s not much more than what they had with the standard deduction plus exemptions. I know I’m going to be paying more but the reductions some people are going to get are a lot less than they expected.
All of the higher tax brackets are being reduced 3-4% and child credits are increasing If you have kids. AMT is also being reduced. There are other ways to make up the money, it’s not just standard deduction.
The problem with this line of thinking is that those deductions are being phased out because this bill will add over a trillion to the deficit over the next few years. The thing is for most people, by eliminating the standard deduction, by combining state and local taxes with a $10,000 cap will make taking an itemized deduction moot for most. This bill will help those who pay the AMT, but there are penalties there too because of the way they will tax bonuses using vested vs received.
I am not sure what you mean regarding tax bonuses being different. If a company pays me a $20,000 end of year bonus on top of my salary, that money is not taxed any different than regular income.
Now the employer may decide with withhold additional tax in that bonus paycheck, but the reporting of the income on the W2 is no different for bonus money vs. salaried money. You will just pay whatever tax bracket that money falls under.
Am I missing something?
I just saw your reply now, and yes. The new tax laws are changing RSU and PSU taxes. You will now be taxed the day the RSU and PSU are granted (I.e. You get the grant but not the money for X years) so you will be taxed on the money well before you actually receive it, and that might be years away depending upon how your company grants these bonuses. Fun times.
If it’s a contracted bonus, maybe. But any sort of discretionary bonus will still be taxed the same. My company gives out end of year discretionary bonus like most other conpanies (assuming they give out bonus). If my company gives me $40,000 for instance, that money just gets lumped into the wages box on the end of year W2. It’s not taxed any differently.
If this is changing I’d like to see how do you have a link?
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| Posted 1/2/18 8:01 AM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: Is anyone paying their property tax early because of new tax bill?
I don't have a link yet, but I know our tax lawyers were telling HR that procedures and systems needed to change regarding the new tax law and rsu stock grants. It would not be for a general bonus i.e. you get paid $150,000 and your bonus is 30% of your base. This is for stock grants where you used to get taxed when you actually received the money, now you will get taxed the year you get the grant but the money might not be given for 3 more years.
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| Posted 1/2/18 12:28 PM |
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| Pages: 1 2 [3] |
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