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

[Anonymous]

I thought our taxes would stay the same or go down slightly. Looks like they're going up a bit. Our HHI is about $175,000, 2 kids, modest house. What the hell?

[Anonymous]

You may have been itemizing a significant amount before that you now can't?

We are almost identical to you in HHI and # of kids and I can't figure out what's going to happen. Last year we itemized and it was almost equal to what the new standard deduction is so, in theory, those two things should be a wash. But with the changes they made to the exemptions, we are being taxed on roughly 16k more income. The $4000 in child credits should help with that but at this point, I just don't know. As near as I can figure it will be almost identical in terms of what we owe. I tried filling out the new W4 online but keep doing something wrong and it makes it look like we owe another 10k in taxes which I'm sure isn't right.

Mine and DH's paychecks adjusted this mont to give us almost an additional $400 back a month. I am saving all of that and expecting I'll have to pay it back in taxes next year. If I'm wrong, I figure I'll just be pleasantly surprised.

[Anonymous]

Our taxes went up 2k due to the loss of the SALT tax deduction (income 250k). Taxes are going down a lot for those who earn 400k+ and people who have consulting type income. For everyone else taxes will decline ever so slightly or increase.

[Anonymous]

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.

[Anonymous]

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.

This is OP and we are in the situation of the first responder and this pp. My itemized deductions are almost, not quite at $24,000. So, why would we owe more?

[Anonymous]

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.

This is OP and we are in the situation of the first responder and this pp. My itemized deductions are almost, not quite at $24,000. So, why would we owe more?

Are you only looking at federal? I know people's state taxes may go up if they don't itemize this year.

Could it be the missing child exemptions?

[Anonymous]

I'm an OP of another thread about how tax software is not able to produce accurate estimated taxes for 2018.

From what I'm reading, the IRS is still confused caused by the rush to pass the laws.

http://money.cnn.com/2018/01/15/pf/taxes/paycheck-tax-reform-withholdings/index.html

" Figuring out how much to withhold from your pay is always a bit of a guessing game. It's an estimate based on how you filled out your Form W-4 and calculation tables created by the IRS.

But in a rush to implement the new law this year, the estimate could be off more than usual.

That's because the IRS has updated the calculation tables, but not the Form W-4.

"We've done the best we can in the short term to come up with tables that accurately reflect the tax liability of individual taxpayers. Going forward, in order to be more precise, we're going to need a new system," said a senior IRS official on a call with reporters last week. "

[Anonymous]

NP I also can't figure out the new withholding calculator. I have decided to wait till 4/15 and then see if an accountant can help me out. Couldn't get one to call me back yet. It doesn't seem right what the results are saying.

[Anonymous]

Anonymous wrote:NP I also can't figure out the new withholding calculator. I have decided to wait till 4/15 and then see if an accountant can help me out. Couldn't get one to call me back yet. It doesn't seem right what the results are saying.

I don't think the IRS will have this sorted out by 4/15.

https://www.yahoo.com/finance/news/5-questions-answers-tax-law-223613199.html

The broad-ranging Tax Cuts and Jobs Act was passed so late last year that the Internal Revenue Service is still issuing interpretations of the law—and probably will be through the rest of this year.

I pay estimated taxes throughout the year, and per my CPA, we are just going by 2017 numbers, which sucks because that means I will end up paying more than I need to.

[Anonymous]

I mean, I think most smart people realized we were going to be screwed.

[Anonymous]

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.

This is OP and we are in the situation of the first responder and this pp. My itemized deductions are almost, not quite at $24,000. So, why would we owe more?

Are you taking into account the cap on SALT deductions? And is this calculation on just the federal, or is it state and federal combined?

[Anonymous]

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?

[Anonymous]

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

[Anonymous]

The issue is that the IRS doesn't even know how this works yet. The bill was so rushed through, and tax changes to payroll checks made so quickly that people really aren't sure what is happening. In most cases, the SALT deduction will hurt people in this area. A limit of $10,000 in taxes for two-income families who own a house makes a big difference.

[Anonymous]

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.