I'm reading more and more accounts of people getting screwed on their taxes...

[Rusty Shackelford]

A situation of the new tax code leading to higher tax (excluding the cap on state+local taxes) under the new system hit me:

Married couple, AGI = 32,100, itemized deductions = 24,000

Under the old system, taxable income = 32,100 - 24,000 (itemized deductions) - 8100 (2x personal exemptions) = 0, tax = 0
Under the new system, taxable income - 32,100 - 24,000 (deductions, itemized or standard) = 8,100, tax = $810

An unlikely situation with itemized deductions being so high with an AGI of $32k.

This "might" be the worst case situation. Too many interactions in the tax code for me to know for sure. I'd just say to anybody claiming their tax bill went up by thousands of dollars due to the new tax law to prove it by posting the information used to calculate the tax.

I would tell someone that has $32K in AGI and $24K in itemized deductions that they have bigger problems in their life then their federal taxes....that or they are lying about their income and deductions

 

[Irons]

Blue state peeps can't transfer all of their ridiculously high state and property tax onto the rest of us anymore. They have gotten away with this for a long, long time.
They will of course scream and howl at Trump and the rest of us instead of demanding their state and local get their shit together.

Your state .gov is causing your pain, so STFU.


.

Ha! Too bad fecker, how 'bout trying some fiscal responsibility instead of begging for taxpayer $$$?

Dakawn Vick • 8 minutes ago
He maligns Trump all the time and has the BALLS to show up asking for favours? Hey, A-hole! How about cutting back on s&^t you can't pay for like handouts to illegal scumbags?



Hah! Gov. Cuomo Whines to Trump About NY State’s Budget Deficit – Trump Tells Him to Start Fracking
by Jim Hoft February 13, 2019 80 Comments

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Governor Andrew Cuomo flew to Washington DC to speak with President Trump about the state’s bloated budget deficit. Cuomo was hoping the president would offer a handout to New York state to offset the $2.3 billion budget deficit this year.


Instead, President Trump lectured him on opening up the state to fracking and allowing fossil fuel pipelines to run through the state.

That makes too much sense.
Cuomo would rather take a handout.

“President Donald Trump floated the idea of opening up New York to fracking and expressed dismay at New York’s enactment of a less-restrictive abortion law during a meeting with Gov. Andrew Cuomo on Tuesday, according to a White House spokesman. Cuomo traveled to Washington to talk to his fellow New Yorker about the impact of the federal government’s $10,000 cap on the deductibility of state and local taxes. The governor is blaming the cap, which was included in federal tax reform passed in late 2017, for a drop in revenue that has created a $2.3 billion gap in his proposed budget… Trump suggested that the state could offset the effects of the SALT cap by allowing fracking, which Cuomo banned in 2014, and by approving fossil fuel pipelines to run through the state,’The President discussed economic growth opportunities for the State of New York, including helping lower energy prices throughout the entire Northeast by allowing low-cost, American energy to thrive with fracking and pipeline systems,’ Deer said.”

https://www.thegatewaypundit.com/20...et-deficit-trump-tells-him-to-start-fracking/

 

[Irons]

tiredofit • 37 minutes ago

Hey, New Yorkers' are always voting for Democrats and saying they would be willing to pay more in taxes, they got their wish. Now the State taxes they are paying are coming out of their own pockets instead of being subsidized by all tax payers. How's that working out for you. Fine for us.


.

 

[edsl48]

I live in Illinois and have listened to the liberals for years saying things such as "well our local taxes are tax deductible." To begin with it doesn't make any sense because we do not have a 100% tax rate or in other words you do not get a dollar for dollar offset despite what the low information types think. None the less if someone pays less taxes another person has to pick up the slack. In other words people in Illinois, New York, California and a few others cause people in low tax states to more or less subsidize their fiscal irresponsibility at the local level.

 

[edsl48]

To expand on my prior post here it irritates me to no end when a realtor tells a young couple they are throwing away their money on rent because if they bought the interest and tax deductions are deductible. These young couples don't realize that their deduction is only allowed to the extent that the amounts exceed the zero bracket (standard deduction) and, per above, it is not a dollar for dollar write off. I have tried to explain this to people to no avail because "their realtor" told them blah blah blah etc. The politicians have made the tax code so complex the public does not understand it and that is just the way they like it so they can spout a bunch of political rhetoric for election bonus points.
(Full disclosure: A retired CPA with specialization in taxation.)

 

[Rusty Shackelford]

I would not say that you are throwing money away, but apples to apples, you cannot rent my house for what my mortgage...the interest and tax deductions just sweeten the deal even if it is only a portion of the dollar "written off". Sure I am paying interest on the home...but there are ways to minimize that. With rent you are paying interest that the land lord passes on as well as the taxes he passes on. When you leave you have a bunch of canceled checks that are worth nothing. At least with the house purchase you can sell the house and recoup some of your losses you incurred buying it.

 

[Scorpio]

more or less subsidize their fiscal irresponsibility at the local level.

we can also be mindful of the fact that we pay for zero zone health care through our continued presence in those countries and writing the checks for .gov military spending.

in effect, we can't purchase health care for our own, but we damn sure are paying for a big share of zerupes.

 

[southfork]

Me and the wife are retired, havent had to pay any taxes so far . Working on my 08 returns now to see if we can still itemize, That being said though I suspect many of the twitter feeds the op listed are democrat bots truth be told

edit 2018

Finished the 2018 returns , no difference in it save the piss ant raise in SS/RR my agi however droppd to 16k from 24k last year. Owe no taxes

 

[southfork]

I would not say that you are throwing money away, but apples to apples, you cannot rent my house for what my mortgage...the interest and tax deductions just sweeten the deal even if it is only a portion of the dollar "written off". Sure I am paying interest on the home...but there are ways to minimize that. With rent you are paying interest that the land lord passes on as well as the taxes he passes on. When you leave you have a bunch of canceled checks that are worth nothing. At least with the house purchase you can sell the house and recoup some of your losses you incurred buying it.

Housing is your biggest living expense, If I had a mortage I doubt I would have been able to retire at 62

 

[mnmom]

Maybe it's just my 'they're out to get me' mindset, but you all fail to see the bigger issue that is being addressed. Before 2018 we always itemized because we give quite a lot away to charity, but this year our typical itemized deductions are just under the new standard deduction. Top this off with the loss of 3 exemptions and we now owe taxes.

It wasn't a plan to 'help' anyone lower tax bills. I firmly believe it's an attempt by the godless in government to push our 501c3 tax organizations like churches into insolvency or prevent them from offering services. Now everyone gets to line up to government organizations and say 'Please sir, may I have some more?' Take away nonprofit services and you have nowhere else to turn but big brother. Trust me when I say welfare just got a boost.

 

[Irons]

Housing is your biggest living expense, If I had a mortage I doubt I would have been able to retire at 62

Peoples #1 goal should be paying off their house and getting that bankers boot off their necks.
Sadly, many long for the boot and make excuses to keep it. Makes zero sense to me.


.

 

[Rusty Shackelford]

Housing is your biggest living expense, If I had a mortage I doubt I would have been able to retire at 62

I agree...but consider rent as a mortgage for life.

 

[southfork]

I agree...but consider rent as a mortgage for life.

For sure Rusty, I told my 4 kids if they want to retire they need to have houses bought and paid for, all 4 on their way to doing it.

 

[edsl48]

People here are in my mind much different than today's general population. Reading I can see that many of us value paid off home ownership. I do not think the younger generations actually have those thoughts. To complicate it all in my neck of the woods are the first ones to fall for the old line"it's for the children" at each and every tax increase referendum; adding to the old adage if you think you own your house try not paying te property taxes and see who really owns the house.
I might add that many landlords can and do rent houses out cheaper than the "how much down and how much a month" club owns. It is really quite simple. I can deduct all of my expenses right off of the top including repairs and maintenance as well as depreciating the property. A homeowner can not deduct repairs and upkeep and as previously stated they can only deduct taxes and interest to the extent they exceed the standard deduction. For me it is all deductible in my computation on adjusted gross income...just sayin...

 

[hammerhead]

Peoples #1 goal should be paying off their house and getting that bankers boot off their necks.
Sadly, many long for the boot and make excuses to keep it. Makes zero sense to me.


.

My BIL has a McMansion in Jewrsey. I once asked if he has his house paid off. He replied that it changes in value too often to make it worth it. This was back in 08 and he also told me his RE taxes were 20k.

 

[Ironpig]

"I'm so poor I can't even pay attention."
Someone Else

SC

I started with nothing and I have most of it left!