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At this point I am used to the Republicans trying to fuck me and my family over.
On November 03 2017 03:17 Blitzkrieg0 wrote:Show nested quote +On November 03 2017 02:44 KwarK wrote:On November 03 2017 02:37 Blitzkrieg0 wrote:On November 03 2017 02:25 KwarK wrote:On November 03 2017 02:22 Blitzkrieg0 wrote:On November 03 2017 01:55 IyMoon wrote:On November 03 2017 01:51 KwarK wrote:
I've explained this infinity times but it's worth repeating that increasing the standard deduction while removing exemptions is effectively class warfare against blended and single parent households. The previous system was a tax deduction based on household size. The proposed system is to give individuals a $12,200 deduction and married couples $24,400, regardless of the number of dependents. Combined with an increase in the lowest bracket from 10% to 12% this is a "fuck you" to single parents, larger families, and anyone supporting elderly parents and the like. There are no longer any tax benefits to dependents. It is going to be nice as a single man though. All of trumps tax plans dont hurt me in the slightest and will actually give me more money. That being said holy shit is it a bad idea It isn't actually that great. As a single man you get a better standard deduction, but then you're paying all that money back in the higher tax bracket anyway. It's $2,689 for him filing as an individual. The expanded 12% bracket helps him a lot. Edited my initial post as it wasn't my intention to dispute that he would be paying more. Just that long term it isn't much difference, especially if you're planning on having children eventually. You're going to have to be single for a long time to make up for that bit. The increased child tax credit limits will actually offset the loss of the exemptions for dependents for him. This tax plan represents a significant improvement for him. You've got to remember that their $120,000 is actually already double the median household income for America. He's not 1%, but he is top 20%. The tax changes will definitely make a favourable difference to him, especially if his income progression continues. I didn't realize there were child tax credit changes as well. So the key is to not have a non-nuclear family then I guess.
Republicans love to promote traditional marriages through taxes, while ignoring that parents can die from literally anything.
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United States44439 Posts
On November 03 2017 03:16 xDaunt wrote:Show nested quote +On November 03 2017 03:13 xDaunt wrote:On November 03 2017 02:52 KwarK wrote:On November 03 2017 02:48 xDaunt wrote:On November 03 2017 02:32 KwarK wrote:On November 03 2017 02:28 xDaunt wrote:
Biggest thing for the tax plan -- go buy your homes now before this thing passes, particularly if you're in a region with high property values. The value of itemizing has been halved by the doubling of the standard deduction. Let's say you're getting a 3% mortgage on a million dollar home. That's $30,000 of deductible interest. The standard deduction is $24,400, giving you a tax deduction of $5,600, worth $1,400 at the 25% bracket. Probably hold off on buying that million dollar home for the tax benefit. If you're buying a home where the mortgage is $500k or greater, you're probably going to have plenty of other deductions to throw in as well and a high enough income such that you'll want to lock in your home now to benefit from the full mortgage deduction for the long term. Care to name a few of the plenty of other deductions thrown in? State and local tax deduction is getting capped while medical is getting eliminated entirely. Here's a schedule A for you. https://www.irs.gov/pub/irs-pdf/f1040sa.pdfI think you'll have trouble finding $25k on there without medical, and with state and local taxes capped. The business deductions can be huge. The Lines 21-27 stuff.
Those aren't the business deductions. You're thinking of the Schedule C. Completely different form. Here you go.
https://www.irs.gov/pub/irs-pdf/f1040sc.pdf
Also read lines 25-27 of that and see if you can work out what they do.
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Ran the numbers over lunch. My savings under the new plan aren't quite as dramatic as I thought at first glance (mostly due to the deductions I'm taking for 401k/ traditional IRA), but it would still be a couple thousand bucks of savings.
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On November 03 2017 03:20 KwarK wrote:Show nested quote +On November 03 2017 03:16 xDaunt wrote:On November 03 2017 03:13 xDaunt wrote:On November 03 2017 02:52 KwarK wrote:On November 03 2017 02:48 xDaunt wrote:On November 03 2017 02:32 KwarK wrote:On November 03 2017 02:28 xDaunt wrote:
Biggest thing for the tax plan -- go buy your homes now before this thing passes, particularly if you're in a region with high property values. The value of itemizing has been halved by the doubling of the standard deduction. Let's say you're getting a 3% mortgage on a million dollar home. That's $30,000 of deductible interest. The standard deduction is $24,400, giving you a tax deduction of $5,600, worth $1,400 at the 25% bracket. Probably hold off on buying that million dollar home for the tax benefit. If you're buying a home where the mortgage is $500k or greater, you're probably going to have plenty of other deductions to throw in as well and a high enough income such that you'll want to lock in your home now to benefit from the full mortgage deduction for the long term. Care to name a few of the plenty of other deductions thrown in? State and local tax deduction is getting capped while medical is getting eliminated entirely. Here's a schedule A for you. https://www.irs.gov/pub/irs-pdf/f1040sa.pdfI think you'll have trouble finding $25k on there without medical, and with state and local taxes capped. The business deductions can be huge. The Lines 21-27 stuff. Those aren't the business deductions. You're thinking of the Schedule C. Completely different form. Here you go. https://www.irs.gov/pub/irs-pdf/f1040sc.pdfAlso read lines 25-27 of that and see if you can work out what they do.
Yep, you're right.
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United States44439 Posts
On November 03 2017 03:23 xDaunt wrote:Show nested quote +On November 03 2017 03:20 KwarK wrote:On November 03 2017 03:16 xDaunt wrote:On November 03 2017 03:13 xDaunt wrote:On November 03 2017 02:52 KwarK wrote:On November 03 2017 02:48 xDaunt wrote:On November 03 2017 02:32 KwarK wrote:On November 03 2017 02:28 xDaunt wrote:
Biggest thing for the tax plan -- go buy your homes now before this thing passes, particularly if you're in a region with high property values. The value of itemizing has been halved by the doubling of the standard deduction. Let's say you're getting a 3% mortgage on a million dollar home. That's $30,000 of deductible interest. The standard deduction is $24,400, giving you a tax deduction of $5,600, worth $1,400 at the 25% bracket. Probably hold off on buying that million dollar home for the tax benefit. If you're buying a home where the mortgage is $500k or greater, you're probably going to have plenty of other deductions to throw in as well and a high enough income such that you'll want to lock in your home now to benefit from the full mortgage deduction for the long term. Care to name a few of the plenty of other deductions thrown in? State and local tax deduction is getting capped while medical is getting eliminated entirely. Here's a schedule A for you. https://www.irs.gov/pub/irs-pdf/f1040sa.pdfI think you'll have trouble finding $25k on there without medical, and with state and local taxes capped. The business deductions can be huge. The Lines 21-27 stuff. Those aren't the business deductions. You're thinking of the Schedule C. Completely different form. Here you go. https://www.irs.gov/pub/irs-pdf/f1040sc.pdfAlso read lines 25-27 of that and see if you can work out what they do. Yep, you're right.
Schedule A is getting neutered really hard by Trump. It's not universally a bad thing but he is considerably increasing double taxation between state, local, and Federal and eliminating charitable deductions for the average taxpayer ought not to sit too well with anyone. While the standard deduction and exemptions worked similarly they were separate things for a reason. Combining them has consequences. It's not just "simplifying".
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Out of interest, how hard is it to do your taxes in the US?
In switzerland, even if you own property, stocks and all that shit, it normally doesn't take over an hour. There are also no form xyz... (If you got your documents together)
And we think its to complicated...
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So in a surprise to no one a plan trump wanted to call the " cut cut cut " plan has no cuts
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United States44439 Posts
On November 03 2017 03:43 Velr wrote:
Out of interest, how hard is it to do your taxes in the US?
In switzerland, even if you own property, stocks and all that shit, it normally doesn't take over an hour. There are also no form xyz...
And we think its to complicated...
With a college education, hard. Without, good luck.
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On November 03 2017 03:43 Velr wrote:
Out of interest, how hard is it to do your taxes in the US?
In switzerland, even if you own property, stocks and all that shit, it normally doesn't take over an hour. There are also no form xyz... (If you got your documents together)
And we think its to complicated...
It's not something that you can really do by yourself. You either need software (like TurboTax) or you need a professional to do it for you (particularly if you have a very complicated financial situation).
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Turbotax has free software that you can use if you make <35,000$ a year, and the IRS links to it (there are some other options too)
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the irs runs a program where trained volunteers will help you do your taxes, too. it's for middle and lower class and old people. they'll make sure you get all the basic stuff right.
as a single guy who basically only generates income from work my taxes take me an hour or so.
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Man, I do my taxes in about 15 minutes.... but I am a single guy filing alone with only one income source
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We get sent our software to do it with the forms to do your taxes, you follow it and your done. Even "tax experts" just use it, print it out and send it in. I'm talking about private households here obviously.
The process actually reminds me of installing a game back in the day (chose your soundsystem....)
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yea depending on your life situation it can be easy. i used to do my own taxes by hand as a teen and mail that shit in the old fashioned way, having no dependents and no deductions means it’s a breeze.
i mean click on the links Kwark’s provided. those are tax documents(though only excerpts from specific sections.) i used to go to the library to pick up the forms too. god that was awful.
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On November 03 2017 03:51 Nevuk wrote:
Turbotax has free software that you can use if you make <35,000$ a year, and the IRS links to it (there are some other options too)
It's always prompted a charge for me because of HSA deductions and filing my state with it. I make less than that amount a year.
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The real data point from that poll: 40% of Republicans approve of the investigation. That is a troubling number for any Republican congress member.
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I'm hoping for the next generation to call BS on current dialogue and build a new one up.
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Norway28923 Posts
haha my taxes are done for me and there's never an issue. government gives me an email telling me they are ready, I go to the appropriate website, log on (every adult in Norway has a personal code device), take a quick 1 minute look at how much I'm getting refunded (or, a couple years, how much I had to pay extra. I normally try to pay too much deliberately because they give a handsome interest so it's actually a fairly decent way at saving money for the summer), and then I get money, or have to pay, a couple months later.
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EPT
