Tax return

Discussion in 'Community Forum' started by Iceman35, Mar 4, 2019.

  1. Iceman35

    Iceman35 12 pointer

    7,987
    2,798
    Oct 27, 2008
    Boone County
    Just another twist to the disussion.

    Did my taxes today. For the first time in several years, I owed a small amount. <$300. Generally get a refund, but it’s all over the place year to year because my total income fluctuates so much year to year, based on company bonus payout, and how much, if any, stock options I cash out.

    Went over the return several times, always coming up with the same amount. Then I compared to a previous years return with a similar AGI. Turns out, the difference is the elimination of the Personal Exemption. $4050 per person, do a total of $16,200 in our families case, that’s not subtracted from your gross income. Since we have always had itemized deductions around or over 24,000, this was a net increase in tax liability percentage from previous years. Around $1200 more from the comparable year.

    Just an FYI for anyone who may be in the same situation.
     
  2. JDMiller

    JDMiller 12 pointer

    10,605
    3,247
    Jun 12, 2005
    " Between the Rivers "
    I've been writing the IRS (federal) a check for the last 10 years and slowly had made enough adjustments that in 2017...I finally broke even.

    I picked up my 2018 tax returns from my cpa last week .....looks like I owe federal $1048.... and basically break even with state returns. Which I was more concerned with the state side of things this year than federal.... but definitely got bit on that one.

    So.... I'm back to the drawing board.... and about the only thing left for me to do is increase my federal with-holdings to offset.
     
  3. cedar creek

    cedar creek 10 pointer

    1,216
    447
    Sep 7, 2014
    I don’t know the trick busy ass all year long pay quarterly and weekly withholding and still pay 5 k this year, I give up,
     
  4. xbokilla

    xbokilla 12 pointer

    9,788
    3,325
    Jun 28, 2012
    Haven’t done mine yet. Our goal is to break even. We don’t really get much in the way of deductions for our jobs. Usually if I get any from federal I’ll owe state a little bit and vice versa. It’s never made sense to me. We grew up poor. 4 kids on dads weekly construction worker salary and my parents had to pay about every year. It also baffles me that people can pay for years, retire, and still have to pay. Oh, well, guess I’ll get brave and do mine soon.
     
  5. Duster

    Duster 12 pointer

    Thanks to Trump and his buddy's. Everything is not what it was made out to be seems like for a lot of people.
     
  6. Iceman35

    Iceman35 12 pointer

    7,987
    2,798
    Oct 27, 2008
    Boone County
    That’s just not true. It’s exactly as it was advertised. I just happen to forget the personal exemption. I’m still getting more money every paycheck. It’s certainly helped businesses reinvest in their businesses and employees. My employer bumped their 401K match by a percent for 400,000 employees.

    The vast majority of people will benefit from it because they were not previously coming close to matching the standard dedection with itemized deductions. My wife and I were always around the current 24K standard deduction anyway, so losing the personal exemptions hurt us from a tax return standpoint, but from an overall money standpoint, we’re ahead for the year.

    My tax return/owe, varied as much as $1500 year to year BEFORE the tax cut.
     
    Hillfarm and 00noturkey like this.
  7. Lady Hunter

    Lady Hunter 12 pointer

    3,160
    1,529
    Jan 12, 2009
    Strangely, we got the same small amount back on our taxes this year as we did last year. Both federal & state. Ain't much but I'd rather get a nickel back than have to pay them more!!!
     
  8. JDMiller

    JDMiller 12 pointer

    10,605
    3,247
    Jun 12, 2005
    " Between the Rivers "
    Understandably when it comes to taxes there's not a one size fits all type of thing.... all our situations vary greatly concerning incomes, deductions & taxes owed.

    But I'm not so sure its actually a case the "vast majority" is receiving benefit from the tax changes... as it appears (to me anyway) its more of a case of smoke & mirrors. Being....most do see the actual increase concerning bring home money to give you a warm fuzzy....but at the end of the year your giving it all back plus some more.

    Which I'm not bashing Trump or anyone for that matter..... but the fact for me ...I was better off concerning taxes owed in 2017....than 2018.
     
  9. WildmanWilson

    WildmanWilson 12 pointer

    9,891
    2,306
    Dec 26, 2004
    Western Ky.
    I get mine done tomorrow. I’m afraid I’m going to get hit since the exemption was changed. My house was paid off last year and I hear I won’t be able to take the deduction on my daughters college. We will see.
     
  10. Iceman35

    Iceman35 12 pointer

    7,987
    2,798
    Oct 27, 2008
    Boone County
    You’re right in that it may not be the vast majority, but it’s clear from my personal paycheck that it’s a net gain. Probably only around $1000 a year, but that’s $1000 the government doesn’t need to have.

    I will say this. They announced our company bonus today, and it’s pretty good. Nearly double last years. I’m already wondering what my tax liability will be because of it. Probably need to set aside some of it and wait and see what happens.
     

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.
    Dismiss Notice