Jump to content

2019 (for 2018) Income Tax Thread


Recommended Posts

Big changes this year... tons and tons of people who have itemized might not now, standard deductions going WAY WAY up, more caps/penalties on itemized deductions.  For example the averages of our itemized deductions the last 4-5 years were about $20K, 2017 standard deduction was $12,700 (married/joint) - now the standard is $24K!  Obviously it paid to itemize; now, nope (Feds are trying to of course cut down on it and reduce tax fraud, good luck widdat).  Anyway, you can see where most of the country will probably just take the standard deduction. I know we will unless I find some flies in the shit when running an itemization.

Not sure what Turbo Tax to buy, since I'd almost certainly do the standard deduction now.  Seems like Basic will work.  However, I guess I have to do an itemized run just to compare.  Waste of $10 (diff. between Basic and Deluxe) to find out? Maybe.

Anyway, with the new year, let's get this shit going, questions, comments, whateverthefucks here. Oughta be a flying hoot. Yay Taxes!!

Edited by phdhorn
Link to comment
Share on other sites

one thing to check is whether you had enough money withheld to cover your taxes.

I'm going to have to do a quarterly estimated tax payment on Jan 15 'cause I screwed up

and didn't change the amount withheld from my pay check when the new tax brackets/withholding

amounts went in to effect. :(

Uncle Sam doesn't like me writing a $3K check on April 15th...

Link to comment
Share on other sites

Correct me if I'm wrong, but as long as you met the "good-faith" threshold rules for withholding based on your prior year's tax bill, there should not be a penalty if you now owe on 4/15 for 2018.

Uncle Sam doesn't care unless you ratcheted your withholding down and rode the cash flow.

 Maybe I'm misunderstanding your situation, but owing on 4/15 isn't something that gets you penalized unless you withheld even less than your prior year's total.  If you withheld the same amount and made more or experienced a bracket shift - that's what you do on 4/15....write a check.

Link to comment
Share on other sites

5 hours ago, phdhorn said:

Big changes this year... tons and tons of people who have itemized might not now, standard deductions going WAY WAY up, more caps/penalties on itemized deductions.  For example the averages of our itemized deductions the last 4-5 years were about $20K, 2017 standard deduction was $12,700 (married/joint) - now the standard is $24K!  Obviously it paid to itemize; now, nope (Feds are trying to of course cut down on it and reduce tax fraud, good luck widdat).  Anyway, you can see where most of the country will probably just take the standard deduction. I know we will unless I find some flies in the shit when running an itemization.

Not sure what Turbo Tax to buy, since I'd almost certainly do the standard deduction now.  Seems like Basic will work.  However, I guess I have to do an itemized run just to compare.  Waste of $10 (diff. between Basic and Deluxe) to find out? Maybe.

Anyway, with the new year, let's get this shit going, questions, comments, whateverthefucks here. Oughta be a flying hoot. Yay Taxes!!

So you used to get a deduction of $20K itemized plus the $12,700 standard deduction for a total deduction of S32,700, and this year you get $24K!

Am I missing something? Or is the $20K heavy with mortgage interest you will still get to deduct?

Link to comment
Share on other sites

58 minutes ago, Reagan1k said:

Correct me if I'm wrong, but as long as you met the "good-faith" threshold rules for withholding based on your prior year's tax bill, there should not be a penalty if you now owe on 4/15 for 2018.

Uncle Sam doesn't care unless you ratcheted your withholding down and rode the cash flow.

 Maybe I'm misunderstanding your situation, but owing on 4/15 isn't something that gets you penalized unless you withheld even less than your prior year's total.  If you withheld the same amount and made more or experienced a bracket shift - that's what you do on 4/15....write a check.

they withheld less money (~3000) from my pay check this year compared to last year so i'm unlikely to meet the "good faith"  threshold.

the IRS finally have the 2018 forms up on the website so i'll be doing the first pass tax calculations this weekend. maybe it won't be as bad

as i expect but it will be close.

Link to comment
Share on other sites

25 minutes ago, WithoutAClue said:

they withheld less money (~3000) from my pay check this year compared to last year so i'm unlikely to meet the "good faith"  threshold.

the IRS finally have the 2018 forms up on the website so i'll be doing the first pass tax calculations this weekend. maybe it won't be as bad

as i expect but it will be close.

Understood.  If you still withheld  90% or more of the tax due you should be OK, even if you withheld less than the prior year.

They're gonna get it one way or the other....that's for sure.

 

Link to comment
Share on other sites

The bigger standard deduction is a good thing for a lot of people, especially those without any employee business expenses.  I'm sure we well get fucked at least a little on unreimbursed expenses from the wife's side as a W2 Employee. But maybe not as SALT taxes are capped at $10,000 for sales and property taxes. Which I is just over my deduction last year. And with a lot of loan interest I think I am probably still gonna file in the itemized category. 

note-  If you took out a equity loan for home improvments after December 14, 2017. You can not deduct the mortgage on that loan any longer if Forbes is correct. I am guessing that is for a second?

I did not realize that you pay 0% on the first $78,750 married filing jointly for capital gains, before the 15% up to $488,850 for those married filing jointly. 

 

 

 

Edited by horn4life
remove political commentary on fica taxes
Link to comment
Share on other sites

21 hours ago, horn4life said:

So you used to get a deduction of $20K itemized plus the $12,700 standard deduction for a total deduction of S32,700, and this year you get $24K!

Am I missing something? Or is the $20K heavy with mortgage interest you will still get to deduct?

I think you're missing something.  You don't get both. 

Link to comment
Share on other sites

  • 4 weeks later...

I'm doing TurboTax piecemeal as I receive forms but I think I've got all the big stuff entered at this point. Just received a 1099-INT for a grand total of $10. When I entered it in, TurboTax raised my amount owed by over $50. WTF? Even if that $10 bumped us up to a higher bracket (don't think it does as far as I can tell), that doesn't seem possible. Any idea what could be going on here?

Link to comment
Share on other sites

1 hour ago, tokamak said:

I'm doing TurboTax piecemeal as I receive forms but I think I've got all the big stuff entered at this point. Just received a 1099-INT for a grand total of $10. When I entered it in, TurboTax raised my amount owed by over $50. WTF? Even if that $10 bumped us up to a higher bracket (don't think it does as far as I can tell), that doesn't seem possible. Any idea what could be going on here?

Nevermind, figured it out.

Link to comment
Share on other sites

20 minutes ago, Nolacycling said:

Single teacher own nothing but a dog. I got a lower refund. I hate him. Trump that is.

 

Most people at your apparent income level experienced a tax decrease.  The refund doesn't tell the whole story because your withholding might have been adjusted.  Need to look at the total tax paid.

  • Like 1
Link to comment
Share on other sites

I'm waiting on one last form for some RSU's that I sold last year and I should be good. We came out ahead due to the increase in AGI phase out for the child credits.

Our home is relatively cheap so I'd time property tax payments to itemize every other year. The new standard deduction wipes out the need to do that anymore. In other words...not Surly 1%.

Link to comment
Share on other sites

25 minutes ago, happyfunball said:

Am I wrong to still be using tubrotax?

Sold and bought a house. Two W-2s, multiple 1099-int/div, but no obscure deductions/income. Single but turbotax shows me having almost $30k in deductions...

I don't think you are wrong.  Unless you made more than $500k (unless that too has changed) on the house, there are no tax consequences.  You might even be able to use the free online version.  I've been using the CD version for home & business for over 10 years.  Still does a good job.

Edit:  you are single, so the max gain is $250k

Edited by HouTex
  • Like 1
Link to comment
Share on other sites

15 hours ago, happyfunball said:

Am I wrong to still be using tubrotax?

Sold and bought a house. Two W-2s, multiple 1099-int/div, but no obscure deductions/income. Single but turbotax shows me having almost $30k in deductions...

I don’t think so even though I prefer taxact mainly because I’ve used them for several years in a row.

Link to comment
Share on other sites

On 1/29/2019 at 12:58 PM, HRSchenker said:

With the standard deduction for married couples going to $24k, I guess I'm SOL on writing off my home loan interest. Now I have more incentive to pay that damn thing down

Same boat.  I'm having almost weekly conversations with my wife about once she gets perm employed, we will start plowing a shitload into paying the mortgage down.  

Something I learned the hard way about the standard deduction increase was that it really screwed with the withholding tables.  Under-withholding caused us to go from normally getting back a couple thousand back each year, to owing a few thousand this year.  

The people most impacted are those middle class, dual wage earners, with no kids, who normally itemize.  4 for 4 for us.  Apparently, the IRS is looking to modify the tables early this year, but shame on me for not doing a quick back of the envelope estimation in early 2018 to figure out we should have been taking more out.  

Link to comment
Share on other sites

1 minute ago, DaysOff said:
On 1/29/2019 at 3:03 PM, Sbbruin said:
This is when being surly .000000001% really hurts.

Has anyone normally hit by AMT done the maths yet? Since I live in a low SALT area I'm expecting no pain using just the standard deduction, but I'm getting mixed answers from peers across the country.

The SALT limitation along with the increased phaseout of the AMT exemption means a large majority of the people previously subject to AMT no longer will be. 

Link to comment
Share on other sites

Same boat.  I'm having almost weekly conversations with my wife about once she gets perm employed, we will start plowing a shitload into paying the mortgage down.  
Something I learned the hard way about the standard deduction increase was that it really screwed with the withholding tables.  Under-withholding caused us to go from normally getting back a couple thousand back each year, to owing a few thousand this year.  
The people most impacted are those middle class, dual wage earners, with no kids, who normally itemize.  4 for 4 for us.  Apparently, the IRS is looking to modify the tables early this year, but shame on me for not doing a quick back of the envelope estimation in early 2018 to figure out we should have been taking more out.  

4 for 4 here too.
Link to comment
Share on other sites

PSA:  Deluxe TurboTax(CD version)** is $20 off through tonight if you order online from Target, Best Buy, Amazon, etc. through midnight tonight.  That makes it about $29 (without state, $39 with state).  I try to order now when it first comes out, then wait a month or so to run the updates before doing taxes, once they clean up the shit that would cause you to spend 30 years in Federal-Pound-Me-In-The-Ass prison for tax fraud.

(** I only get the CD version, am leery about doing shit online, and don't want the "download version", just in case I want to check shit out later... perhaps one of these years I'll change as the CD becomes almost obsolete, but for now it's how I roll)

Link to comment
Share on other sites

1 hour ago, Redneck Mutha said:

Same boat.  I'm having almost weekly conversations with my wife about once she gets perm employed, we will start plowing a shitload into paying the mortgage down.  

Something I learned the hard way about the standard deduction increase was that it really screwed with the withholding tables.  Under-withholding caused us to go from normally getting back a couple thousand back each year, to owing a few thousand this year.  

The people most impacted are those middle class, dual wage earners, with no kids, who normally itemize.  4 for 4 for us.  Apparently, the IRS is looking to modify the tables early this year, but shame on me for not doing a quick back of the envelope estimation in early 2018 to figure out we should have been taking more out.  

Got us too. 4/4

Last year our CPA ran our 2017 numbers using the 2018 brackets and said we’d see about a $10k drop. I’ve had that number in the back of my head all year and when I did my 80% rough TurboTax estimate a few weeks ago it looks like we might owe a couple Gs. 

Link to comment
Share on other sites

48 minutes ago, phdhorn said:

PSA:  Deluxe TurboTax(CD version)** is $20 off through tonight if you order online from Target, Best Buy, Amazon, etc. through midnight tonight.  That makes it about $29 (without state, $39 with state).  I try to order now when it first comes out, then wait a month or so to run the updates before doing taxes, once they clean up the shit that would cause you to spend 30 years in Federal-Pound-Me-In-The-Ass prison for tax fraud.

(** I only get the CD version, am leery about doing shit online, and don't want the "download version", just in case I want to check shit out later... perhaps one of these years I'll change as the CD becomes almost obsolete, but for now it's how I roll)

Make the switch to the online version.  Keep everything in the cloud.  I scan copies of my tax statements and keep a copy of my return PDF.  Don't keep any other file or paper doc.    And I don't really need to get the files since I can grab everything from TaxAct whenever I want.

Link to comment
Share on other sites

10 hours ago, Redneck Mutha said:

Same boat.  I'm having almost weekly conversations with my wife about once she gets perm employed, we will start plowing a shitload into paying the mortgage down.  

Something I learned the hard way about the standard deduction increase was that it really screwed with the withholding tables.  Under-withholding caused us to go from normally getting back a couple thousand back each year, to owing a few thousand this year.  

The people most impacted are those middle class, dual wage earners, with no kids, who normally itemize.  4 for 4 for us.  Apparently, the IRS is looking to modify the tables early this year, but shame on me for not doing a quick back of the envelope estimation in early 2018 to figure out we should have been taking more out.  

Immediately in 2018 when everyone started hoo-hawing about less withholding and that alleged paycheck increase( shuffling deck chairs, but whatever...)  I increased my withholding by an extra $50 a paycheck.

I really, really try to get my payment/ refund in April as close to zero as possible.  Only one time have I ever had to pay like $2k over my withholding.  It fucked us up all year, so I said then that it would never happen again.

Looks like this year I overdid it a little and we're getting $2000 in refund, but with the way everyone was talking about it, I saw us getting set up to take it in the shorts, come tax day.

Fuck that.

Link to comment
Share on other sites

Man.  My tax filer (wouldnt dignify calling them advisors) sucks.  Big 4 corporate fuckheads.  They just finished my 2017 filing...after endless delays.  And smacked me across the face with a big ass assessment.  I have no confidence they actually did it properly.  They certainly didn't do it in time.  Dont mind paying a big bill if i have confidence it was assessed properly, but i fucking dont

Link to comment
Share on other sites

  • 2 weeks later...
30k in deductions for? Also, if you sold house for at least $250k, you should probably report and exclude the gain to avoid a potential IRS Notice. 

 

House was way more than $250k but broke even so no gain as a result no tax impact.

 

Finished filing today as I had multiple employers. My effective rate went down from 22% to 17%.

 

This seems low to me, but I’m not complaining. All my deductions saved me.

 

I overpaid due to social security not hitting the cap as a result of employer switch early in the year.

Link to comment
Share on other sites

With the standard deduction for married couples going to $24k, I guess I'm SOL on writing off my home loan interest. Now I have more incentive to pay that damn thing down

... I highly recommend getting that mortgage monkey off your back. It’s a life changer, you’ll sleep better, better health, less stress, mo money, you’ll have the flexibility to take risks that you previously wouldn’t have.... can’t stress this enough...
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.



×
×
  • Create New...