Tax time.....

KFC911 · 02-22-2019, 12:50 AM

My elderly mom ain't happy....at all

.

Hate to get PARFy but all she watches is FOX news....wasn't expecting to write a check for several grand with no significant changes for a few years now....except the new tax laws.

She still has sticker shock....I haven't done mine yet...

.

Think I'll be just fine....it's just all $ and B$ though....

lendaddy · 02-22-2019, 02:52 AM

Is your mother in California or NY by chance? I expected those changes to have made much larger stink than they have.

KFC911 · 02-22-2019, 02:58 AM

NC....she's not alone evidently....local news topic de jour...

KFC911 · 02-22-2019, 03:00 AM

Yep....I did just fine....a bit more back, no significant changes...YMMV

jwasbury · 02-22-2019, 03:29 AM

my back of the envelope calcs indicated my bill was going up. i have been paying with my return for years, so i adjusted my withholdings upwards to compensate for both the larger tax burden, and also the fact that the withholding formulas that were issued with the tax reform bill resulted in LESS withholding than under the old laws.

the change in withholding tables and decreased taxes taken out of peoples wages is probably going to catch a lot of folks out. those of us in high tax states like NY and NJ who make enough scratch to live decently in this area are not beneficiaries of the tax reform bill, but the dumb withholding tables assume that everyone benefits.

cabmandone · cabmandone's Garage

I'm starting to get the feeling your mom is a fairly wealthy woman.
What changes caused her to owe?

KFC911 · 02-22-2019, 04:03 AM

Quote:

Originally Posted by cabmando

I'm starting to get the feeling your mom is a fairly wealthy woman.
What changes caused her to owe?

Oh hell no....my elderly parents worked their butts off as blue collar furniture workers their whole lives...

Tax law changes...nothing more

Standard deduction vs itemizing...that's it.

fintstone · fintstone's Garage

Since rates did not go up...must have made more money or did not pay in as much during the year.

vash · vash's Garage

Owe? You mean “owe more” no?

I upped my contributions last year. I also penciled in extra withholdings to be taken from my paycheck to prevent the shock of having to pay more later.

Wife and I overpaid a schooch We are getting a little bit back. It doesn’t feel like a refund really if I look at the big picture. Either way. Eff it. I’m thankful to be gainfully employed.

cabmandone · cabmandone's Garage

Quote:

Originally Posted by KC911

Oh hell no....my elderly parents worked their butts off as blue collar furniture workers their whole lives...

Tax law changes...nothing more

Standard deduction vs itemizing...that's it.

My bad! I was thinking it was you that started the life estate thread but that was Norm. For some reason I thought you started a trust thread too.. Argh! You're living rent free in my head... GET OUT MAN. BTW this is why I shouldn't trust my memory.

Not trying to pry, just trying to understand. This is a tough subject to discuss without details.

KFC911 · 02-22-2019, 04:13 AM

Quote:

Originally Posted by fintstone

Since rates did not go up...must have made more money or did not pay in as much during the year.

Nope....same fixed income for years now...both parents. They will pay more in total taxes....nothing changed for them except the new tax code.

The numbers don't lie.....liars do

KFC911 · 02-22-2019, 04:18 AM

Quote:

Originally Posted by cabmando

My bad! I was thinking it was you that started the life estate thread but that was Norm. For some reason I thought you started a trust thread too.. Argh! You're living rent free in my head... GET OUT MAN. BTW this is why I shouldn't trust my memory.

Not trying to pry, just trying to understand. This is a tough subject to discuss without details.

I do have an old Porch....gotta be loaded

. I have my parents' backs....we're all fiscally conservative....livin' within our means...not wealthy at all....

.....like Hugh

cabmandone · cabmandone's Garage

Hey! My memory was only 1/2 wrong!! you did do the trust thread. That's a relief.

fintstone · fintstone's Garage

Quote:

Originally Posted by KC911

Nope....same fixed income for years now...both parents. They will pay more in total taxes....nothing changed for them except the new tax code.

The numbers don't lie.....liars do

Please explain how that works...as many have not done their taxes yet.

Most elderly made more last year due to the large SS cost adjustment. Did they have other income?

KFC911 · 02-22-2019, 04:49 AM

Quote:

Originally Posted by fintstone

Please explain how that works...as many have not done their taxes yet.

Most elderly made more last year due to the large SS cost adjustment. Did they have other income?

I plugged the exact same numbers into TurboTax that I've been doing for years, SS/modest pensions/IRA RMDs/negligable rental income...no changes essentially.

Except the results....mebbe TurboTax gave me fake totals

?

fintstone · fintstone's Garage

...and none of those had increased? I don't understand how that is the case. Especially SS. You need to talk to SS as they should have received an increase. I thought COLA was 2.8% in 2018.

KFC911 · 02-22-2019, 05:01 AM

^^^^ I didn't look at specifics on their SS...might have bumped a bit. Their total net income hasn't deviated much...(modest). It is what it is...my mom had the sticker shock

. She ain't gonna be alone according to local news stories...

fintstone · fintstone's Garage

Quote:

Originally Posted by KC911

^^^^ I didn't look at specifics on their SS...might have bumped a bit. Their total net income hasn't deviated much...(modest). It is what it is...my mom had the sticker shock

. She ain't gonna be alone according to local news stories...

Beats me...if you are talking about Fed taxes (not state). Looks to me like it would be hard to actually pay more on the same income:

KFC911 · 02-22-2019, 05:13 AM

Quote:

Originally Posted by fintstone

Beats me...if you are talking about Fed taxes (not state). Looks to me like it would be hard to actually pay more on the same income:

Both NC & Fed. Biggest change for them...the new standard deduction saves more than all the itemizing as before...that's about it....their income doesn't change much year-to-year now.
What changed behind the scene....I depend upon TurboTax...GIGO.

GI did not change much...

GO did

flatbutt · 02-22-2019, 05:16 AM

I may actually make out. I lost all deductions last year like most along with a paid up mortgage, but the $12K standard may bail me out of trouble. Still waiting on tax statements.