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Joined: 09/09/2007 Posts: 16646
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I checked last year's filing - I had 9k more deductions last year.

Some of it is because of the tax law changes nullifying certain deductions. For me, the job-related expense deductions disappearing is a big hit. My company gives me a monthly vehicle allowance in return for me using my personal vehicle for work. However, that money is untaxed and shows up as income on my W-2. So, I used to deduct all my work-related vehicle expenses, which almost always was a very significant amount of money.

The other piece of it is due to us not qualifying for the full traditional IRA contribution deduction this year because our income crossed the threshold that severely limits that ability. I don't know if the new tax laws changed that threshold; this is the first year our income has been at this level, so I've never really paid any attention to it before.

I still haven't had time to calculate my effective tax rate for this year and compare it to last year to see definitively how the new laws affected our specific situation. I understand that for nearly everyone else, things are better this year vs. last, which is a good thing in my opinion.

(In response to this post by JoesterVT)

Posted: 02/12/2019 at 1:18PM

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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

I checked last year's filing - I had 9k more deductions last year.

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