Is the new IRS calculator for tax year 2018 (filing in 2019) correct? Why did my taxes go up?

[Anonymous]

Anonymous wrote:Did you really think Trump was going to lower your taxes?

+100 stiffed contractors

[Anonymous]

People in higher local tax states will see their taxes increase because of the vindictive SALT elimination. (Designed to punish Democrat-leaning areas). All the more reason for people to turn red areas in blue states to blue.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I really can’t figure it out. My itemized deductions are almost identical to the standard deduction too but the calculator says I am going to owe whereas this year I got a 4K refund. I’m just hoping for the best, I guess.

Has the amount being withheld from your paychecks changed?

Yes, I am receiving about $100/paycheck more due to the new withholding tables. How am I supposed to adjust it without a new W4? I guess just make an assumption and ask my company to informally withhold more.

I wouldn't worry about that, I'd just put the extra you're getting in your paychecks right into savings for the expected tax bill.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I really can’t figure it out. My itemized deductions are almost identical to the standard deduction too but the calculator says I am going to owe whereas this year I got a 4K refund. I’m just hoping for the best, I guess.

Has the amount being withheld from your paychecks changed?

Yes, I am receiving about $100/paycheck more due to the new withholding tables. How am I supposed to adjust it without a new W4? I guess just make an assumption and ask my company to informally withhold more.

I wouldn't worry about that, I'd just put the extra you're getting in your paychecks right into savings for the expected tax bill.

Makes sense. I’d rather have just had my paychecks kept the same and not had to worry about owing more. I bet a lot of people are in for a big shock come next April. Surprise! We gave more money just to take it away again.

[Anonymous]

Anonymous wrote:People in higher local tax states will see their taxes increase because of the vindictive SALT elimination. (Designed to punish Democrat-leaning areas). All the more reason for people to turn red areas in blue states to blue.

Why should I pay more federal income taxes in Virginia because my in-laws on Long Island and PA have such high local taxes? Sorry, I don’t need to subsidize their garbage picked up 3 times a week just because that’s best for the local union or the public school bus to pick up my niece and nephew (and every other kid in the district) at the foot of their drive way rather than walk 2-3 blocks to a shared bus stop.

[Anonymous]

Perhaps now people will undetstand that what they say is happening and what they do don't match.

[Anonymous]

You people are such fools. Do you really think they reduced withholding on average even though overall taxes will not be reduced? Enjoy your fantasy world.

[Anonymous]

Anonymous wrote:You people are such fools. Do you really think they reduced withholding on average even though overall taxes will not be reduced? Enjoy your fantasy world.

Explain what fantasy world we are living in, please. I have direct evidence that withholding has been reduced from my paycheck, but no evidence that I won’t owe that same money (and maybe more) right back.

[Anonymous]

The issue is a failure to update W4s. Because they are using old W-4s that don’t reflect how taxes work they are kind of guessing.

It is not that hard to estimate and do by hand, especially with the larger exemption from AMT. anyone who might owe AMT under the new system can probably afford a tax accountant to help them.

All you neee is (1) everything that is pre tax (401Ks, FSAs, healthcare contribution, (2) knowing what your deductions will be using the new rules (do they add up to more than 24K for a family), and (3) how many children will qualify for the tax credit. You apply the applicable tax rates to income minus pre-tax minus deductions. Once you have this number you the subtract your child tax credits.

This is how much you will owe.

You then check your withholding and multiply that by the number of paychecks you have left this year. You add this number to the amount already withheld. This is how much you will have had withheld at the end of the year.

I get that this is Moore complicated for some that are self emotional loved or variable incomes but it always is for them. For us wage slaves all you need is a paystub and a calculator.

Compare the numbers to see how you are doing.