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madbolter1
Big Wall climber
Denver, CO
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Apr 26, 2018 - 04:31pm PT
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Roger, do you do your own taxes or have them professionally done (and I don't mean low-end "preparation" like H&R Block)?
My guess is that you're losing the State "double tax" deduction, but perhaps nobody has informed you about the $20k increased "standard deduction" that will mean that the vast majority of middle-class folks no longer need to itemize to enjoy a (even if only slightly) bigger overall deduction, which translates into an income tax reduction overall. If you are middle class and seeing an increase overall, I'd suggest hiring a genuine CPA, or a different one.
In our experience, CPAs range widely from "hyper-conservative" to "pushing the edges of the legal envelope." I don't suggest the latter end of the spectrum, but neither do I accept the former end of the spectrum in a CPA. There is LOTS of entirely legally-sustainable wiggle room in the middle that can save you thousands of dollars in federal taxation.
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zBrown
Ice climber
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Apr 26, 2018 - 05:01pm PT
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recreated the software's calculation in Excel
ditto
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Fritz
Social climber
Choss Creek, ID
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Apr 26, 2018 - 05:22pm PT
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I do most of our own fairly complicated taxes, then I spend an hour with our accountant & he does the rest.
Part of the service this year was a prediction on 2018 federal taxes.
I should mention that Heidi & I are retired & most of our income is interest, dividends, distributions, & Social Security. We have only been taking the standard deduction for several years.
No deductions for dependents.
Our federal taxes are reduced about 37%, for 2018, if our income stays the same.
I'm sorry for the tax bill, which I still consider a Republican scam to make their rich political donors richer & keep them donating to Republicans.
I'm also sorry for America & our budget deficit, which should not be growing hugely in these prosperous times.
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Lorenzo
Trad climber
Portland Oregon
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Apr 26, 2018 - 05:27pm PT
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After the great republican tax break my taxes (retired) are projected to go up 8%.
The big item is no deduction for SALT.
David Dennison’s tax package wasn’t very kind to blue states.
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donini
Trad climber
Ouray, Colorado
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Apr 26, 2018 - 05:36pm PT
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Whatever your taxes are, you're still not paying enough. We're on a really slippery slope...politicians get their jobs by promising their uninformed electorate that they will lower taxes. Meanwhile...the budget deficit soars while education, research and infrastructure flounder. Not a good way to stay ahead of the pack.
Our failure to educate is brought home every day by the proliferation of climate deniers, racists, holocaust deniers and Trump voters.
Immigrant groups throughout our history have sought to better themselves thru hard work and education while our wonderful nativists who wave flags and wear their racisim on their sleeves sink lower and lower into the abyss.
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Lorenzo
Trad climber
Portland Oregon
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Apr 26, 2018 - 05:41pm PT
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Whatever your taxes are, you're still not paying enough. We're on a really slippery slope...politicians get their jobs by promising their uninformed electorate that they will lower taxes.
Well, duh.
When you build in a trillion dollar deficit for the rich, of course nobody is paying enough.
Hint.... they aren’t going to balance the budget on what I pay, even if it 100%.
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donini
Trad climber
Ouray, Colorado
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Apr 26, 2018 - 05:49pm PT
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Right Lorenzo...it’s the lack of taxes paid by corporations and the rich that is our problem. I didn't stress that obvious fact in trying to get across the point that taxes aren't necessarily bad.
Edit: you can't expect the profit driven private sector to think past their next quarter reports.
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labrat
Trad climber
Erik O. Auburn, CA
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Apr 26, 2018 - 05:51pm PT
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According to my tax person I will be paying a little less in 2018.
"I'm also sorry for America & our budget deficit, which should not be growing hugely in these prosperous times."
x2!!! Totally agree! Fricken insanity....
Richest are continuing to get richer. Our military spending is too high. The Trump tax cut and budget that was just passed is a travesty.
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zBrown
Ice climber
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Apr 26, 2018 - 07:14pm PT
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Good point Jim.
In general, probably not a good idea to discuss your own personal tax information here!
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Ed Hartouni
Trad climber
Livermore, CA
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Apr 26, 2018 - 09:51pm PT
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my tax preparer (Debbie) says our taxes will probably go down next year...
I don't consider that a good thing.
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Reilly
Mountain climber
The Other Monrovia- CA
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Apr 26, 2018 - 09:55pm PT
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Well, you could give some back, if it floats yer boat.
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madbolter1
Big Wall climber
Denver, CO
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Apr 26, 2018 - 10:57pm PT
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This thread has drifted somewhat and is in danger of quickly becoming just another politard thread.
My own interest (given that, like 80+% of the middle class, my taxes will go down) was in trying to understand how somebody clearly solidly in the middle class will see a significant increase. That generally strikes me as either bad or over-conservative tax advice.
Far be it from me to question Roger's tax-prep acumen. But this is a case in which if I were him I'd be getting a second or third opinion. I strongly suspect that something is being overlooked in the whole picture.
Of course, as Reilly says, Roger and others could just be happy that they are doing "their share" to attack the debt. Others of us could volunteer to pay more.
I've lost confidence in government's (left or right) ability to spend my money wisely. So, I'll opt to pay as little as I'm legally allowed to, and I'll pay really good CPAs and consult with tax attorneys to ensure that I'm both legally compliant and paying as little as possible.
Roger, seriously, for the couple of hundred or so that it would cost, it would probably be worth having a professional take a look-see, unless you don't mind paying more in taxes.
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Lituya
Mountain climber
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Apr 26, 2018 - 11:07pm PT
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Amusing libs.
On Taxes: "Please, somebody make me pay more!" and "If only those 'other people' would pay their fair share, dammit, I would too!"
On Climate Change: "Please, somebody stop me from drivin' my SUV to the crag and hopping on that big old jet airliner to Chile!"
On Wealth Disparity: "I simply don't understand why everyone doesn't have a summer home in Chile!"
On Education: "If only we'd pay more $$$$ to teachers and administrators it follows we would get really smart kids!" and "I don't understand why everyone doesn't go to college!"
On Illegal Immigration: "Well, so far we've been unable to sell our stupid lefty ideas to the locals. Let's import an underclass, blame the shitty wages we pay them on Republicans, farmers, and contractors, and then try to get 'em on the voter rolls at some future date."
On The Holocaust: "I support Palestine!"
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Lituya
Mountain climber
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Apr 26, 2018 - 11:22pm PT
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zBrown
Ice climber
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Apr 27, 2018 - 07:48am PT
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In 2017, the standard deduction for a single taxpayer was $6,350, plus one personal exemption of $4,050.
The new law combines those into one larger standard deduction for 2018: $12,000 for single filers and $24,000 for joint filers.
6350 + 4050 = 10,400
vs
12,000
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madbolter1
Big Wall climber
Denver, CO
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Apr 27, 2018 - 10:38am PT
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^^^ And so: Net gain for most people, and that with simplified filing.
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Ed Hartouni
Trad climber
Livermore, CA
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Apr 27, 2018 - 10:46am PT
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in the same post we have:
This thread has drifted somewhat and is in danger of quickly becoming just another politard thread...
I've lost confidence in government's (left or right) ability to spend my money wisely..."
if you don't want it to drift, don't push it off topic.
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madbolter1
Big Wall climber
Denver, CO
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Apr 27, 2018 - 10:48am PT
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While I have a degree in finance you don't need one for this.
I'm not a tax attorney or CPA, but I'm guessing that with two businesses and multiple income-producing properties (meaning that I must also itemize and rely on tax professionals to keep it all straight) my situation is at least as complicated as yours and probably with comparable or higher "income." (I put that in quotes, because, as you know, the devil's in the details of how that term is defined at tax time!) Colorado also has an income tax, and I used to also get a great sales tax deduction that is now going away. And still, this tax code is a net-gain for me, and that is primarily due to professional help to plan my entire year around the tax implications of everything I and my businesses do.
I hope that you can find a way to enjoy a net gain, and my suspicion is that under the new code it's possible. But, again, I don't know the details of your situation nor what a tax professional could do for you. I am suspicious, however, of the statement that I'm "overthinking it." Given tens of thousands of pages of tax code, it's not possible to "overthink" it! That's precisely what professionals DO: Overthink each client's situation!
I sincerely hope that you get somebody to "overthink it" on your behalf. Of course, it's your call, and I wish you all the best in it.
Cheers!
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madbolter1
Big Wall climber
Denver, CO
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Apr 27, 2018 - 10:50am PT
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if you don't want it to drift, don't push it off topic.
The OP was that Roger is experiencing a net loss under the new tax code. That is precisely and entirely what I have addressed in each of my posts, including the latest one.
I encourage him to seek professional guidance and review of his situation.
End of story.
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