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  • Happy Tax Day!

    Here we are once again, on the day when we have to settle up with the faceless bureaucracy in DC. What are your personal observations under the the new tax code?

    I ended up paying significantly more this year, both in withholding and total tax (comparing actual effective rate).

    That said, it is quite clear that this is a result of my income range and the fact that I pay a lot in state income taxes (well more than the $10K limit), and I lost some deductions. FWIW, I'm in the 95%+ range but not quite 99%, so I'm not in the ultra-high income range, nor are we a median household.

    What bothers me, though, is that the withholding tables are obviously badly messed up. I ended up owing a Federal tax payment high enough to generate a significant penalty, while I also ended up with a very large refund (thousands) from the state. This was with no change in my W-4 from the prior year, where I owed a small federal amount and got less than $100 back from state. This is problematic, because it means that to get close to even from an all-in perspective, I have to end up writing a BIG check and get penalized by the Fed while giving the state a significant interest-free loan. How does this make sense?

    Anyway, how did you all come out? It's an anonymous poll, so no worries about exposing your situation.

    13
    I don't owe any tax this year, and none last year
    7.69%
    1
    Paid a lower total rate
    46.15%
    6
    Paid a higher total rate
    30.77%
    4
    No change - paid about the same rate
    7.69%
    1
    Beats me - I didn't look closely enough to say for sure
    7.69%
    1
    Last edited by SteinbergerHack; 04-15-2019, 06:28 AM.
    Lease this space!

  • #2
    I don't know about rates but my fed tax bill was in the thousands this year. I have never had to pay additional fed tax before so this really stung.

    Zip
    665 - Neighbor of the Beast

    Originally Posted by RobRoy: I believe that the only way Obama will remain in power is if he suspends elections. And at that point he is no longer president. He is dictator. But I don't believe he will even survive that long. It could be suicide, impeachment by BOTH parties, you name it.

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    • #3
      I usually break even with the fed, but this year I'm getting a whopping $50 back. The state was about the same as last year.

      Comment


      • #4
        I'm paying more this year, but it probably has to do with a conservation grant we got on our LLC farm ground. I haven't been able to itemize for many years, since my house is paid off and my income in retirement isn't enough to get tax credits for, among other things, the ground source HVAC system we put in the house while it was being built.
        (When in court, after swearing to tell the truth) "Facts are facts and alternative facts are perjury."

        ...Julia Olson, executive director, Our Children's Trust

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        • #5
          Since I was aways ending up owing at the end of the year, I jacked up my backup withholding and added an additional withholding amount.

          So I ended up getting a nice return, but that's no ideal. I'd rather break even.

          I did end up with a little more ($200) in my paycheck due to the tax cuts.

          No state tax in TX thank goodness.

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          • #6
            I got hosed, but it was more a function of my new salary and some short term gains than to tax changes per se.

            I’m looking forward to June when I can stop paying SS tax for the year, and to the 0 state income tax in TN.

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            • #7
              I’m single with no property tax or other such business. So I’ve got a simple tax form and I didn’t get stung by NY’s loss of some deductions. My refund was smaller than it has been in times past, but my monthly tax rate is lower and explains why; overall, I paid a little less.
              For those who prefer to listen rather than read and who ask these questions: What underlying crimes were being investigated when Trump obstructed justice? Why wasn't he indicted? Why did Mueller discuss indicting a sitting president in Volume II but not Volume I?
              https://www.audible.com/pd/The-Muell...ook/B07PXN468K


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              • #8
                My federal taxes went down overall a bit - maybe about $1,200 total. And I'm in the majority...

                One problem for Republicans is that the Democrats did a much better job on messaging and describing it as a "tax cut for the rich", when in fact many / most middle income people benefitted from it.

                https://www.msn.com/en-us/money/mark...V9R?li=BBnbfcL

                **********

                "Look at it this way: think of how stupid the average person is, and then realize half of 'em are stupider than that."
                - George Carlin

                "It shouldn't be expected that people are necessarily doing what they appear to be doing on records."
                - Sir George Martin, All You Need Is Ears

                "The music business will be revitalized by musicians, not the labels or Live Nation. When the musicians decide to put music first, instead of money, the public will flock to the fruits and the scene will be healthy again."
                - Bob Lefsetz, The Lefsetz Letter

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                • #9
                  Paid $149,499.00 last year paid little less than $800.00 this year. One time capital gain deal and likely won't happen again.
                  (The US will not survive the obama presidency. The world may not either.) Cuban Leaf

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                  • #10
                    I paid considerably more this year than last but there were a few reasons for this. We lost claiming our daughter for one. We made slightly more than last year and my wife didn't have any fed tax taken out on her new job. I get my pension and SS of which we have no tax taken out but we save enough to pay our taxes. Anyway, it was quite a shock to have to pay about twice as much as last year.

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                    • #11
                      My estimated tax payments for 2018 turned out to be estimated a little high, so I got a higher than normal refund this year. Not much higher.

                      I don't like underestimating my payments because then I wind up owing, and no one likes that.

                      I also don't like overestimating because, even though I get a fat check at tax time, its like giving an interest free loan to the government. Plus, I could use that money during the year for the business.

                      So every year I fiddle with my estimates, trying to get my refund as close to 0 as possible.
                      Last edited by BA.Barcolounger; 04-15-2019, 10:34 AM.

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                      • #12
                        Originally posted by SteinbergerHack View Post

                        What bothers me, though, is that the withholding tables are obviously badly messed up. I ended up owing a Federal tax payment high enough to generate a significant penalty, while I also ended up with a very large refund (thousands) from the state. This was with no change in my W-4 from the prior year, where I owed a small federal amount and got less than $100 back from state. This is problematic, because it means that to get close to even from an all-in perspective, I have to end up writing a BIG check and get penalized by the Fed while giving the state a significant interest-free loan. How does this make sense?

                        It doesn't. And this is the other big problem for the Republicans - the IRS didn't update the withholding properly, so a lot of people ended up owing money at the end of the year - even some who had less taken out over the course of the year than they did in previous years and who may have paid slightly less in taxes overall.

                        I read recently (no link, but if you want one I can try to find it again...) that the IRS is planning on updating the withholding and W-4's for 2020, which may help... but the down side is that the new W-4 is supposed to be much more complicated - which kind of defeats the whole idea of making tax prep easier, which was supposed to be one of the benefits of the latest tax law that the Republicans passed... and some of the info they're going to be asking for on the new W-4 may be a little too private and personal for some people to feel comfortable sharing it with their employers, such as income from side work or a second job, personal business and / or interest income, their spouse's income, etc. While there will supposedly be a way to report that directly to the IRS without disclosing personal information to your employer, it sounds like a complicated PITB to me.

                        Here's a link after all - it's not the same article I read, but it's on the same subject...

                        https://www.usatoday.com/story/money...ar/3401811002/

                        I would like mine left alone - I'm not getting a ton back at the end of the year, but I'd rather get a grand or two back and not have to worry about under-paying... YMMV.
                        **********

                        "Look at it this way: think of how stupid the average person is, and then realize half of 'em are stupider than that."
                        - George Carlin

                        "It shouldn't be expected that people are necessarily doing what they appear to be doing on records."
                        - Sir George Martin, All You Need Is Ears

                        "The music business will be revitalized by musicians, not the labels or Live Nation. When the musicians decide to put music first, instead of money, the public will flock to the fruits and the scene will be healthy again."
                        - Bob Lefsetz, The Lefsetz Letter

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                        • #13
                          We got about $6000 federal/State. Our withholdings haven't changed.
                          Guns Over People

                          I pledge my allegiance to David Hogg and Emma Gonzalez!!!

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                          • #14
                            Originally posted by Hoddy View Post
                            We got about $6000 federal/State. Our withholdings haven't changed.
                            SIze of refund really has no relationship to the actual tax rate you paid.....just sayin'
                            Lease this space!

                            Comment


                            • #15
                              Originally posted by SteinbergerHack View Post
                              Here we are once again, on the day when we have to settle up with the faceless bureaucracy in DC...

                              ... What bothers me, though, is that the withholding tables are obviously badly messed up. I ended up owing a Federal tax payment high enough to generate a significant penalty, while I also ended up with a very large refund (thousands) from the state. This was with no change in my W-4 from the prior year, where I owed a small federal amount and got less than $100 back from state. This is problematic, because it means that to get close to even from an all-in perspective, I have to end up writing a BIG check and get penalized by the Fed while giving the state a significant interest-free loan. How does this make sense?
                              I thought the thread title was "Happy" Tax Day.

                              Am I missing something?
                              Every worm, every insect, every animal is working
                              for the ecological wellbeing of the planet.

                              Only we humans, who claim to be the most intelligent
                              species here, are not doing that. ~Sadhguru

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