Anyone done their taxes, yet?
This year, we received a HUGE refund...
03-05-2019, 01:18 PM
#32
Registered User
No, Bill, I meant what I said. The federal income tax I paid for 2018, (the figure "this is your income tax on the return") was 3.6 times as much as the prior year. Having said that, my tax for either year was not a huge number, as I am retired and have a lot of non-taxable income (municipal bonds), but the point I was making is that my tax went up even though my total income went down. Mainly due to a loss of deductions that were disallowed by the new tax law.
03-05-2019, 01:34 PM
#33
No, Bill, I meant what I said. The federal income tax I paid for 2018, (the figure "this is your income tax on the return") was 3.6 times as much as the prior year. Having said that, my tax for either year was not a huge number, as I am retired and have a lot of non-taxable income (municipal bonds), but the point I was making is that my tax went up even though my total income went down. Mainly due to a loss of deductions that were disallowed by the new tax law.
I figured that you knew what you were talking about, and knew what tax liability meant.
It just shows that everyone's case is different. Some people might have a lower tax liability, but others, depending on their own individual circumstances, might have a higher tax liability.
03-05-2019, 01:40 PM
#34
03-05-2019, 01:58 PM
#35
03-05-2019, 03:21 PM
#39
Registered User
Yeah, I'm a retired CPA. I know the lingo.
K-1s come from estates, trusts, partnerships and S-corporations, although that last one might have a different number. (Memory getting rusty) The underlying returns can be extended, which would mean you wouldn't get your K-1 until after April 15th, but most accountants hate to do that because they will then get nasty phone calls from all the recipients. I hope all of yours come soon.
K-1s come from estates, trusts, partnerships and S-corporations, although that last one might have a different number. (Memory getting rusty) The underlying returns can be extended, which would mean you wouldn't get your K-1 until after April 15th, but most accountants hate to do that because they will then get nasty phone calls from all the recipients. I hope all of yours come soon.
03-05-2019, 03:24 PM
#40
Not exactly. I've done quite a few tax returns so far and I'm finding that while some people are better off, many are owing more than they expected or did in the past. While it's true that some are owing because the withholding tables were tweaked to give the wage earner more takehome pay and an artificial sense of benefit, many are owing more simply because of the changes in the tax code. Many deductions have been eliminated or capped, exemptions while still in place are now 0 and other changes have created greater liability for many taxpayers. The cap on the SALT taxes for one has been a big hurt to many taxpayers in high real estate tax states. The infamous AMT tax, while still in place, has been virtually eliminated giving some relief, but not enough to offset the benefits that were taken away.
Take a look at the Schedule A (Itemized deductions). Where does the taxpayer take the deduction for accounting fees, brokerage fees, estate planning, fees for managed accounts and etc? For many of my clients those were significant deductions.
Whereas the QBI (Sec 199A) was an attempt to equalize the tax rate that small business pays with the benefits given to C Corporations, why were licensed professionals left in the "weeds" at certain income levels? If it's good for a C Corp, it should be good for all business.Those of us who make a living as licensed professionals in small business were left out.
All in all, I think more people are going to be dissatisfied with the results. It's still too early to generalize, but a lot of my clients are unhappy with the results.
Take a look at the Schedule A (Itemized deductions). Where does the taxpayer take the deduction for accounting fees, brokerage fees, estate planning, fees for managed accounts and etc? For many of my clients those were significant deductions.
Whereas the QBI (Sec 199A) was an attempt to equalize the tax rate that small business pays with the benefits given to C Corporations, why were licensed professionals left in the "weeds" at certain income levels? If it's good for a C Corp, it should be good for all business.Those of us who make a living as licensed professionals in small business were left out.
All in all, I think more people are going to be dissatisfied with the results. It's still too early to generalize, but a lot of my clients are unhappy with the results.
It’s just getting old seeing headlines about refunds being down, but people don’t understand the difference between a refund and tax liability.