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Joined: 07/10/2002 Posts: 20832
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What's this?

Finally, a reasonable post on this; all the headlines are annoying

Back in Feb 2018, my tax person warned that, since we were getting a piece of the tax break in every paycheck, if I didn't change my withholding I could end up paying significantly - like $7k (that is significant for me, after getting back less than $1,000 each year for years). So I did a little research, and chose to make some changes.

I adjusted my traditional 401(k) rate and opened a (new for my company) Roth 401(k), to take some of the tax burden. My appt isn't until end of Feb., but my estimate is that I should about break even. And I know nothing about taxes, and can barely do math. I was just doing this seat-of-the-pants.

Now every day there is a headline about people getting smaller refunds, and how it "isn't fair." Jeez. If even I understand it, others should be able to.

[Post edited by WestyHokie at 02/12/2019 12:28PM]

(In response to this post by VaAkita)

Posted: 02/12/2019 at 12:26PM

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Current Thread:

CPA: What % of your clients are actually paying more? -- VaAkita 02/12/2019 12:10PM

The problem is they adjusted the withholding tables back in 2/18 -- fordham 02/12/2019 2:31PM

Yes 80 percent paid less in taxes -- capitals1 02/12/2019 1:12PM

Keep in mind most of the middle class cuts expire over the next 5 years -- VTSnake 02/12/2019 1:20PM

Not true ** -- 133743Hokie 02/12/2019 3:15PM

Where did you hear this? ALL of the individual cuts expire in 2028 ... -- vt90 02/12/2019 1:29PM

Individual cuts expire at the end of 2025 ** -- hucareshokiesrul 02/12/2019 1:41PM

Sorry, I was off by a couple of years. ** -- VTSnake 02/12/2019 2:02PM

Wasn't sure if it was 8 years or 10 ... it was because of another law -- vt90 02/12/2019 1:58PM

Isn't it the corporate tax cuts that were made permanent? ** -- Hokie360 02/12/2019 1:28PM

Sure. The ones that mostly benefit the top 0.1% ** -- VTSnake 02/12/2019 2:06PM

Where do you get that?? Those cuts just made our country more competitive -- DonHo-kieHi 02/12/2019 9:14PM

Most of their huge tax windfall went to stock buybacks -- VTSnake 02/13/2019 07:10AM

Actually they don't as far as their personal taxes go ... -- vt90 02/12/2019 2:15PM

How much of the top 0.1% income is traditional though? -- VTSnake 02/12/2019 2:26PM

They make income from everywhere ... -- vt90 02/12/2019 2:34PM

Yep - the only number that matters is the 'total tax owed' line and that -- vt90 02/12/2019 1:19PM

Its more accurate overall. And they wanted people to see $ before election -- hucareshokiesrul 02/12/2019 1:17PM

Finally, a reasonable post on this; all the headlines are annoying -- WestyHokie 02/12/2019 12:26PM

Those headlines are trying to push a specific narrative (ie tax plan bad). ** -- HokieNoVA 02/12/2019 1:54PM

Aren't Roth contributions post tax? How does that lower your burden? -- VTSnake 02/12/2019 1:13PM

You are correct, Roth is post tax. ** -- EDGEMAN 02/12/2019 2:32PM

I'll let you know Feb. 27 ** -- WestyHokie 02/12/2019 1:31PM

Every article I've seen explains why it's happening but describes how -- hucareshokiesrul 02/12/2019 12:44PM

85% paying less, 10% unchanged, 5% paying more is the rough approx ** -- 133743Hokie 02/12/2019 3:20PM

Please source. I haven't seen anything stating that most are paying less ** -- VTSnake 02/12/2019 1:14PM

Many people never had close to the amount of the new standard deduction -- fordham 02/12/2019 2:35PM

Here is an interesting article ... -- vt90 02/12/2019 2:30PM

Here's one. From the WaPo... -- Hokerer 02/12/2019 1:44PM

The usually include a blurb about how estimates are that 80% or more will -- hucareshokiesrul 02/12/2019 1:38PM

Thanks. -- VTSnake 02/12/2019 2:10PM

Look up the tax tables for 2018 vs. 2017. Rates dropped. -- MP4VT2004 02/12/2019 1:25PM

It is fairly simple math - most (almost all) will have a lower total tax -- vt90 02/12/2019 1:25PM

That's the irony; most did pay less, they just didn't think about it -- WestyHokie 02/12/2019 12:57PM

Not a CPA, but yes...most regular folk will pay less...however... -- JoesterVT 02/12/2019 12:14PM

I checked last year's filing - I had 9k more deductions last year. -- MP4VT2004 02/12/2019 1:18PM

Not a CPA and didn't even sleep at a Holiday Inn last night -- RTFC 02/12/2019 2:19PM

You don't sound snarky. -- MP4VT2004 02/13/2019 12:50AM

I understand your premise -- RTFC 02/13/2019 10:19AM

I think he mean's that he's now taxed on it, not a double dip -- VTSnake 02/12/2019 2:51PM

Basically correct - by "untaxed" I meant there are no witholdings... -- MP4VT2004 02/13/2019 12:55AM

That's not how I understood it -- RTFC 02/12/2019 4:26PM

Sorry, I didn't explain it very well. -- MP4VT2004 02/13/2019 12:57AM

Media spinning it ** -- DaveVT 02/12/2019 12:36PM

Kind of like adjusting the withholding too much so you can point to bigger -- jmanatVT 02/12/2019 1:31PM

I've seen them reporting that people are mad, but they always explain what -- hucareshokiesrul 02/12/2019 1:01PM

Finally, a reasonable post on this; all the headlines are annoying

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