Me too. Tax was like $7600. $6K in child tax credits, like $500 in dependent care, and about $1700 in Education credits more than wiped it out.
I lost a bunch of deductions. Travel related for work among others. Maybe they’ve just been redirected elsewhere and I just could find it but yeah... getting much less back even with the lower standard deduction.
No. That is my federal income tax before tax credits. After credits it was negative. And FWIW, my wife doesn't pay SS because she is in the teacher pension. I did pay about $5,500 in self employment taxes.
Business related travel did go away for employees, but was one of the most frequently abused deductions out there which is part of why they cut it. Business should always reimburse their employees for expenses because it's better for them and you, but yeah, I know there are jobs, particularly in sales where they won't reimburse a lot of expenses.
You do realize they are taking less taxes out of your paycheck since early last year? That extra money is also part of your tax cut. You just received it throughout the year instead of a larger lump sum and ended up not giving the government a zero interest $972 loan.
I will say though with the loss of deductions I was thinking I would be paying over 1000 easily. Last year before my deductions I owed over 1500. So yeah with the standard deduction and the child credit im in better shape. Just sucks to lose those deductions that literally saved me over 2,000 dollars last year.
Yes I work in sales essentially. Yes you are correct it could be abused but it is a large investment every year to be on the road and front that kind of money and abuse your 2nd biggest investment other than your home.
Umm my check went up 8 dollars in pay and went down 120 more a month in health care. So yeah... making less but that’s not all on Trump. Partially on the craptastic health care my company provides.
I pay less than 10% in federal taxes despite an income that puts me in the upper tier (the benefit of no longer being on W2's). Republican tax policy has been beneficial to my pocket book, if not my country.
I don't understand how If you are really talking about income (or adjusted gross income) and the highest marginal bracket, then you should be paying well over 10 percent absent enormous deductions. If you own a business entity and actually work in/for the business, the IRS mandates that you pay yourself a wage reflecting the work portion (as opposed to the passive portion) you generate. So, in the case of a LLP or LLC, those are pass through entities. One has to pay him/herself a wage in proportion to the value of the work and still pay income tax on both the wages and the distributions. But, if you make more money in a year than your wages, you save money on the other federal taxes (non-income). If you formed a corp and work there, you still have to pay yourself a wage and pay your income taxes on that and then 23.5 percent on any "dividends" you distribute to yourself. What am I missing? And, all of these high earners on here who are apparently paying no income taxes or a low percentage of taxes, do you think structuring your affairs to avoid taxes is appropriate?
Perhaps his income is purely retirement and capital gains/dividends. I work to avoid taxes, and I don't feel real shame in it, but that is because I want to reduce my self employment tax as much as anything, which will negatively impact me when I'm getting SS benefits in retirement. I do however think I should be paying more in income taxes. I think they should do away with the child tax credit completely, but they won't do that.
Maybe but highest bracket usually is used with respect to ordinary income not capital gains (admittedly, he used tiers). If one has sufficient income to be in the highest bracket but it is based on LTCG, you should be paying 23.5 percent. I get deductions can soften that, but they would have to be significant. My two takeaways: 1) members of both parties naturally work hard to minimize taxes (and it is not evil to do so); and 2) I need better help with my taxes.
https://www.google.com/amp/s/www.fatherly.com/news/middle-class-angry-trump-tax-hike/amp/ Surprise! Trump voters taxes went UP!
