Reply to Just did taxes...annoyed. Other people in the same boat?

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[quote=Anonymous][quote=Anonymous]All this was expected. GAO did a report and ran a simulation that predicted this: https://www.forbes.com/sites/ashleaebeling/2018/07/31/gao-dont-count-on-a-tax-refund-next-april/#58a5205438af

But just to put this "problem" in perspective before the change in law, about 18% of the filers had taxes due. As a result of the new tables this number rises to 21%. Almost 70%+ will continue to get a refund, as in most of the country will  not notice.

That additional 3% who are now being hit with a tax bill are probably heavily skewed towards[b] the DCUM crowd[/b] (high income dual earners who used to itemize).[/quote]

This, and also the fact that it is skewed towards people who live in states with income taxes (Maryland is projected to be one of the hardest hit states) and people with children (who, at higher tax brackets, lose money relative by getting the child credit instead of an exemption--at the lower tax brackets, the credit is worth more than the exemptions were). So it's a perfect storm for DCUM, but will have less of an impact on households with HHI below $75K, especially in states with low/no property and income taxes where few people were itemizing anyway. For some households there, the higher standard deduction coupled with new rates and credits will mean much lower taxes.[/quote]

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