Taxpayers angry amount of refund is down.

Wealthy folks are complaining about the SALT deduction limitation raising taxes.

Link:
Wealthy Taxpayers Screaming About Lost Deductions Under Trump Tax "Cuts"

 

I don't think there's any question that the limits on the SALT and mortgage interest deductions clobber wealthier taxpayers in places that have high taxes and high real estate costs. It was pretty easy to see that coming.

I'm old enough to remember when conservatives were generally supportive of the SALT deduction, because it encouraged the funding of government at the state and local lever rather then looking to Washington. However, that was before political polarization was as prevalent.

 

Here are some quick numbers for a family of four, earning $100K, filing married jointly and using the standard deduction. I don't have anything in here for the tax credits.

2018 standard deduction for married jointly - $24,000
2017 standard deduction for married jointly - $12,700

2018 personal exemptions - $0
2017 personal exemptions - $4,050 per person

2018 tax brackets:

10% up to $19,050
12% between $19,051 and $77,400

2017 tax brackets:

10% up to $18,650
15% between $18,650 and 75,900

If I did my math correctly, a family of four, earning $100,000 would have paid $9,733 in 2017 and $8,739 in 2018.

The incremental tax per exemption lost is $608 ($4,050 x .15). So a family of five would have still saved taxes under the 2018 structure. (2017 liability of 9,733 minus $608 = $9,125). A family of six would have paid an additional $222 in 2018 under the new rate structure.

Under this scenario, in order for the taxes to double in 2018, I believe this family would have to have 11 children plus the two parents (their tax liability in 2017 would have been approximately $4,300).

 

Funny, they complain about losing a deduction but not about the taxes they are paying that gave rise to the deduction.

 

Well, I also got pushed into a higher bracket because of removing exemptions. Still happened due to code change.

 

I find it interesting that some of the people complaining about a lower refund are no doubt the same ones that support leftist socialist policies that will eventually raise their tax rates to 60%.

 

Have you accounted for the doubling of the child tax credit from $1k to $2k per child. 11 kids would be a $22k tax credit. I suspect a $100k married couple with 11 kids would pay no taxes and likely get money back.

 

No sir. As I mentioned, I didn't consider any credits. I was trying to figure out how someone's tax liability could double under the new tax laws. I myself received a $500 credit (for other dependents).

 

My tax cut this year was $5k (on an equal income basis) due to getting full credit for the $1000 per kid tax credit (I have 4 kids) plus having a 22% top tax rate instead of 25%.

 

As far as I'm concerned, it was a combination of a hostile media campaign combined with morons who don't know the difference between their tax liability and a refund.

 

Looking at my filing history, I am basically making 20k in higher income that is tax free.

 

Compared to last year I made more, paid less and had a larger refund (I kept my additional withholding amount the same being a tad conservative about the outcome). No AMT. $500 tax credit for my son in college (filing Head of household). Lower rates. It all worked.

 

Also, I like the new layout. It’s a simpler presentation, even if some stuff were shifted to the schedules. For most people, the schedules are not needed anyway.

 

Well I’ll be darned, I was wrong, I ended up with slightly higher refund even after being forced to take the new standard deduction because of the new reductions in allowable deductibles. Bless my heart.

 

That is precisely what it was.

 

Based on the media headlines, I am positive that most folks had lower taxes this year. Otherwise, the headlines would have been "Americans paid more taxes this year" instead of "Americans have lower refunds this year.

 

I read somewhere that the IRS/Trump was to blame for not being more aggressive in educating people about what to expect. So the children then became angry almost a year or more after the tax law changes were published. That is the classic enabling that is going on.

The constituents of the Liberal Patronage Industrial Complex are coddled beyond belief. What is it that the Left is saying when they act like their constituents can't figure things out?

 

Only the TDS people could find a way to blame Trump for not telling people they were going to get more money each paycheck.

 

I just read that the IRS adjusted the withholding amounts. I still paid more in taxes for various reasons but I also received withheld less than I would have according to the previous rules. I admit I was a bit confused. The changes aren't as bad as I thought but the deductions and credits still didn't work out for me.