Tax FYI

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Originally Posted by fitz19d

I remember the salt thing was something to piss dems off more? But I don't know the details. Also new higher standard deduction applies to filing for 2017??

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Salt is "State and local taxes"... Tax payers in the dem controlled cities/states with stupidly high state and local taxes didn't really feel the pain because they could deduct all the state/local taxes they paid from their federal taxes. So basically the dem cities/states were stealing tax money from the federal government. Now residents of those cities/states will feel the pain of those higher taxes.

And no, the higher standard deductions won't come into play until you file taxes next year.

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Originally Posted by fitz19d

I remember the salt thing was something to piss dems off more? But I don't know the details. Also new higher standard deduction applies to filing for 2017??

I need to run it every which way to be sure I guess. But trying to work out whats better filing singly or jointly with wife. Basically 60k gross roughly each, mortgage payment. I have like 3k in medical bills last year. If standard deduction change I suppose that would be hard to exceed with various taxes/pmi/interest/medical. Unless maybe I'm doing something like claiming the house and everything else that is mine to exceed my deduction singly, then give her her portion of the refund from house stuff?

PS I hate taxes.

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I hate paying SO MUCH tax.

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Originally Posted by brutal

I hate paying SO MUCH tax.

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I only saved about half of what I owe for last year. Ooops.

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Originally Posted by fitz19d

I remember the salt thing was something to piss dems off more? But I don't know the details. Also new higher standard deduction applies to filing for 2017??

I need to run it every which way to be sure I guess. But trying to work out whats better filing singly or jointly with wife. Basically 60k gross roughly each, mortgage payment. I have like 3k in medical bills last year. If standard deduction change I suppose that would be hard to exceed with various taxes/pmi/interest/medical. Unless maybe I'm doing something like claiming the house and everything else that is mine to exceed my deduction singly, then give her her portion of the refund from house stuff?

PS I hate taxes.

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Yes, running scenarios is very smart! I do this myself just using MS Excel. Most years the IRS publishes a "draft" 1040 in Oct--but that is late to make a lot of changes. Who knows what they'll do for 2018 though.

SALT cap is designed to limit the amount of tax shifted from the Fed to high tax states like CA and NY. In a sense, the Fed is subsidizing these states (and since there's no such thing as states' rights in 2018, why is that okay?).

I don't think many in CO would be impacted. If you had property and ownership taxes of $2,500 (which is high), you would be limited to $7,500 of income tax deduction which is ~$162,000 AGI. Most of us won't be hurt!

In my opinion, the tax code need even further simplification.

Gross Income minus a standard deduction to get taxable income. The standard deduction is the same for everyone. In a family, you get a deduction for each individual. Taxable income could never be less than $0.00.

Take taxable income and multiply it by X%. Same for everyone. Eliminate separate SS, medicare, ect. taxes. Just 1 fixed income tax bracket. Or go to national sales tax.

Thats it.

Taxes should never be used to persuade economic choices. No deductions for solar panels or gun parts...

If you want to give to charity, fine. Don't ask everyone else to subsidize your giving by paying more in taxes. Want a house, fin, do it without the rest of us subsidizing it.

And there you have it folks, the slippery slope being normalized such that halfway to hell is default; where that which until ~ 105 years ago was seen as unconstitutional is now seen as a paleo-conservative wet dream fantasy.

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Originally Posted by Eric P

In my opinion, the tax code need even further simplification.

Gross Income minus a standard deduction to get taxable income. The standard deduction is the same for everyone. In a family, you get a deduction for each individual. Taxable income could never be less than $0.00.

Take taxable income and multiply it by X%. Same for everyone. Eliminate separate SS, medicare, ect. taxes. Just 1 fixed income tax bracket. Or go to national sales tax.

Thats it.

Taxes should never be used to persuade economic choices. No deductions for solar panels or gun parts...

If you want to give to charity, fine. Don't ask everyone else to subsidize your giving by paying more in taxes. Want a house, fin, do it without the rest of us subsidizing it.

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If we’re really trying for tax equality, why should a person with children pay LESS than a person with no children?

Want children, fin, do it without the rest of us subsidizing it.

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Originally Posted by NFATrustGuy

If we’re really trying for tax equality, why should a person with children pay LESS than a person with no children?

Want children, fin, do it without the rest of us subsidizing it.

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I agree with that also.

Or... just ixnay the whole income tax and force the fed to focus on their piece of the pie by either special votes as actually needed and/or tariffs, etc. The argument put forth by Eric P and NFAtrustGuy is analogous to a group of doctors discussing whether the morbidly obese patient in front of them should eat only 4 large pizzas a day instead of 8. He shouldn't be eating any large pizzas.

But it's not about the nail, right ladies?
:)

https://www.youtube.com/watch?v=5O11_Ma20Rk

Zombie thread bump!!!

[panic]


I would recommend everyone take a look at the new 1040 (draft) while you can do some year end planning...

https://www.irs.gov/pub/irs-dft/f1040--dft.pdf

All 1040 drafts here...

https://apps.irs.gov/app/picklist/li...mitSearch=Find


This stuff isn't exciting but it is going to hit a lot of taxpayers. Exemptions are gone. Standard Deduction is $12,000/24,000 which will help a bit. Don't forget the $10K SALT limit.

Rates are down which is nice but depending on your dependents this could result in more taxes due.

Spent some time today working up my "mock" 1040 to see where I am. It's saving me a bit because some of the changes net out to my benefit but I can see how this could be bad for some scenarios.

Overall the 1040 is getting closer to what tax reformers have said it should be; much more simple and intuitive.