I pay my taxes every December for the year, always thought others did the same.
New Tax Plan Calculator - will you pay more or less?
I pay my taxes every December for the year, always thought others did the same.
dhartmann34
Well-known member
Our real estate taxes are split into half's and paid in June and September usually.
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Gotcha. I don’t escrow, but put aside money each month and come December I’ll pay the full amount (property, school and mud) to get the tax break that year.
dhartmann34
Well-known member
Yeah we do the same. But we pay half on each installments due date. Just how illinois works I suppose
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moosejaa
Mr. Inconsistent
I usually itemize too. So does that mean it will be better to use the standard deduction?
-CRW-
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I think so. At least, according to the calculator at the OP's link. I went up to $20,000 in itemized deductions just to see and it still showed it would be better to take the standard deductions.
If this is true, there are going to be a lot of upset CPA's. Filing it myself would save me almost another $500.
moosejaa
Mr. Inconsistent
the standard will likely be $24k for mfj.
dhartmann34
Well-known member
Itemizing we're usually at about $13k in deductions.... but if it goes up to the $24k, then we'll be going with the standard deduction for sure.
Mulligan9111
Go Skers!!
While this is great, they are taking away the personal exemptions of $4,050 for 2017. So with the standard deduction and personal exemption singles were getting $6,350 + 4,050 = $10,400. Which comes to a difference of $1,600.
For couples with a child, they are actually losing out. Current MFJ std deduction is $12,700 + 4,050 + 4,050 = $20,800. Add the exemption for the child and that becomes $24,850. Add more children and you lose out on that $4,050 per child.
This also could hurt charities as with there will be less people itemizing their deductions, and therefore less incentive to donate to charities. Now I'd like to think people don't donate to charities just for the tax deduction, but I do personally know some previous clients who did.
From what I've read so far and from presentations from Deloitte (one of the big 4 accounting firms) on what's currently being voted on, there are senators that the republicans need for the vote that will not pass the bill unless there are changes made to allow higher state income tax deduction, so I wouldn't be surprised if there is a big change from what is currently in the 2 bills and what the final bill will be. Also there is talk that the highest income tax rate will now be 37%, lowered from 39.6%. So the new calculations for high income tax payers will change.
dhartmann34
Well-known member
Yeah, I was thinking about that 'donation' thing as well. I think there are two types of donations.....spur of the moment...and calculated. The calculated ones tend to be bigger and well planned. Those ones will suffer for sure. But it'll be interesting to see what the actual finished plan is.
I asked my wife about what she knows (She's a Deloitte employee) but she kindly reminded me....as she does everyone else that asks her.... she does not do taxes. hahaha. She's an auditor. She hates taxes. Doesn't even do ours.
I asked my wife about what she knows (She's a Deloitte employee) but she kindly reminded me....as she does everyone else that asks her.... she does not do taxes. hahaha. She's an auditor. She hates taxes. Doesn't even do ours.
dhartmann34
Well-known member
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FIFY!!
Mulligan9111
Go Skers!!
Yeah, I was thinking about that 'donation' thing as well. I think there are two types of donations.....spur of the moment...and calculated. The calculated ones tend to be bigger and well planned. Those ones will suffer for sure. But it'll be interesting to see what the actual finished plan is.
I asked my wife about what she knows (She's a Deloitte employee) but she kindly reminded me....as she does everyone else that asks her.... she does not do taxes. hahaha. She's an auditor. She hates taxes. Doesn't even do ours.
Haha, I just got out of taxes this past year. Looking forward to my first year of not having to do taxes and actually being able to get out and golf during the nice weather in the spring.
It will for sure make filing a lot easier for a lot of filers and the new rates are looking to save most people in the $2-4k range each year, but I think hurting charities could be an unintended consequence. Who knows, maybe there won't be any effect on charities (which is what I'm really hoping).
Overall though, I think the tax plan is great, especially for businesses as there is more incentives now for businesses to stay in the United States. Hopefully this will lead to higher wages and higher employment levels, which is what I believe the main goal of this tax plan is.
dhartmann34
Well-known member
Yeah they really need a better system for the whole diaper thing. Expensive and they don't get used for too long. But now hopefully you'll have a few extra $$ for it.
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dhartmann34
Well-known member
but don't gloss over the increased child tax credit. it's increasing from $1k per child to $2k per child, and adding a non-child dependent credit of $500. and that credit isn't being phased out until $400k of agi, which is significantly higher than current phaseouts.
Mulligan9111
Go Skers!!
I didn't gloss over that. I was speaking directly about the change to the standard deduction.
you're saying people with a child are losing out. sure they're losing dependency exemptions, but doubling the credit is a big win, as is the massive increase to the allowable base before phaseouts. and if they're getting phased out of the child tax credit with the new law, it's a wash because they're likely losing their dependency exemptions under the current law. net net i don't think they're losing anything, and most mfj filers with kids will see good sized savings.
there are some interesting things in the law. the from agi pass-through deduction looks like a real headache. most of the other stuff seems to be pretty straightforward. i hate that the amt and niit didn't go away.
Living in the mess that is the state of California I do not expect that my taxes will go down, if anything I would not be surprised if they go up. Oh well, at least I get to play golf in December and January.
-CRW-
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You can do that in Texas, and the cost of living is cheaper!
Illinois is not exactly a tax utopia either. Our state personal income tax was increased this year by 32%. We haven't crunched the numbers yet, but for us, any savings at the federal level will likely be a wash at the state level.