Tax Bill is a loser

[93henfan]

What? Nobody else has checked to see how much better off they are thanks to the tax reform bill passing?

Hey buddy,

You do realize the taxes you file in 2018 are for 2017, right?

As far as 2018 (ie. the taxes we'll file next year that will be affected by tax reform), my standard deduction will double and my bracket is dropping from 28% to 24%, so I should be getting an effective reduction in taxes of ~$5,000, maybe significantly more.

We already did a thread on it here: http://www.championshipsubdivision.com/ ... =9&t=48655

[BDKJMU]

What? Nobody else has checked to see how much better off they are thanks to the tax reform bill passing?

How are we suppose to know for 2018 taxes that we can't file until Jan 2019?

Edit, I see 93' beat me to it.

[JohnStOnge]

I am talking about 2018 taxes. Back when Trump was touting the tax bill prior to passage I recall him as saying that in January people would see more take home pay. However, I Googled it and saw that the withholding changes will be effective in February. So we'll see what happens in February.

[JohnStOnge]

What? Nobody else has checked to see how much better off they are thanks to the tax reform bill passing?

How are we suppose to know for 2018 taxes that we can't file until Jan 2019?

Edit, I see 93' beat me to it.

Most people can tell if their effective tax rate goes up or down by looking at how much Federal income tax is withheld from their paychecks. I thought the withholding changes were effective by now. Turns out they'll be effective in February. So most people will be able to get a good feel as to whether their effective tax rate went up or down and whether it went up or down by a lot or a little pretty soon by looking at their pay statements.

[Col Hogan]

Congress...you know, the folks who wrote the legislation...have it set up to kick in in February...

This Friday is the first possible payday with the lower taxes...the IRS had to take the legislation and write the resulting code...

Calm down...it’s gonna hit soon...

[AZGrizFan]

How are we suppose to know for 2018 taxes that we can't file until Jan 2019?

Edit, I see 93' beat me to it.

Most people can tell if their effective tax rate goes up or down by looking at how much Federal income tax is withheld from their paychecks. I thought the withholding changes were effective by now. Turns out they'll be effective in February. So most people will be able to get a good feel as to whether their effective tax rate went up or down and whether it went up or down by a lot or a little pretty soon by looking at their pay statements.

That tax rate change has nothing to do with a person’s “effective” tax rate. That’s the statutory tax rate they’re withheld at. Their effective tax rate is what they end up paying after all deductions, etc. at the end of the year. Using your logic, I had a GREAT effective tax rate until i stroke the $42,000 check I gotta write in April.

[CAA Flagship]

phpBB [video]

[JohnStOnge]

Most people can tell if their effective tax rate goes up or down by looking at how much Federal income tax is withheld from their paychecks. I thought the withholding changes were effective by now. Turns out they'll be effective in February. So most people will be able to get a good feel as to whether their effective tax rate went up or down and whether it went up or down by a lot or a little pretty soon by looking at their pay statements.

That tax rate change has nothing to do with a person’s “effective” tax rate. That’s the statutory tax rate they’re withheld at. Their effective tax rate is what they end up paying after all deductions, etc. at the end of the year. Using your logic, I had a GREAT effective tax rate until i stroke the $42,000 check I gotta write in April.

I think that historically most people just take the standard deduction and the expectation is that even more people will do that now. I think that for most people what happens with their withholding will indicate whether their effective tax rate went up or down.

But we could also just talk about take home pay because that's part of the idea. The Republicans believe that the bill will become popular once people see their paycheck by paycheck take home pay increase as a result of tax rate decreases. And it's not an unreasonable belief. I'm just interested in seeing what the effect is going to be for me.

[93henfan]

You do realize that employees elect how much they have withheld by designation on their W4’s, no?

[AZGrizFan]

That tax rate change has nothing to do with a person’s “effective” tax rate. That’s the statutory tax rate they’re withheld at. Their effective tax rate is what they end up paying after all deductions, etc. at the end of the year. Using your logic, I had a GREAT effective tax rate until i stroke the $42,000 check I gotta write in April.

I think that historically most people just take the standard deduction and the expectation is that even more people will do that now. I think that for most people what happens with their withholding will indicate whether their effective tax rate went up or down.

But we could also just talk about take home pay because that's part of the idea. The Republicans believe that the bill will become popular once people see their paycheck by paycheck take home pay increase as a result of tax rate decreases. And it's not an unreasonable belief. I'm just interested in seeing what the effect is going to be for me.

You should stop thinking about it then.

My “tax rate” went down, but at the end of they year, I’m pretty sure (with the reduction in property taxes) that I’m going to pay MORE than I would have under the old plan.

[AZGrizFan]

You do realize that employees elect how much they have withheld by designation on their W4’s, no?

Just stop, 93. You’re just going to confuse him.

[93henfan]

You do realize that employees elect how much they have withheld by designation on their W4’s, no?

Just stop, 93. You’re just going to confuse him.

My bad.



Oh, hi! I'm back.

Hey, here are some real numbers that might be useful to JSO. I was just paid yesterday. I did not change my W4 at all for 2018; still claiming zero exemptions. My pay was exactly 6.76% higher after withholding than my pay was in 2017. 2.29% of that is due to the 2018 federal employee raise for the Washington DC locale, so my pay went up 4.47% (deducting the raise for apples to apples comparison). This lines up almost exactly with what I was expecting with reduction of my bracket from 28 to 24% and a doubling of my standard deduction.

[Ivytalk]

Just stop, 93. You’re just going to confuse him.

My bad.



Oh, hi! I'm back.

Hey, here are some real numbers that might be useful to JSO. I was just paid yesterday. I did not change my W4 at all for 2018; still claiming zero exemptions. My pay was exactly 6.76% higher after withholding than my pay was in 2017. 2.29% of that is due to the 2018 federal employee raise for the Washington DC locale, so my pay went up 4.47% (deducting the raise for apples to apples comparison). This lines up almost exactly with what I was expecting with reduction of my bracket from 28 to 24% and a doubling of my standard deduction.

That’s almost 6.93% higher.

[AZGrizFan]

My bad.



Oh, hi! I'm back.

Hey, here are some real numbers that might be useful to JSO. I was just paid yesterday. I did not change my W4 at all for 2018; still claiming zero exemptions. My pay was exactly 6.76% higher after withholding than my pay was in 2017. 2.29% of that is due to the 2018 federal employee raise for the Washington DC locale, so my pay went up 4.47% (deducting the raise for apples to apples comparison). This lines up almost exactly with what I was expecting with reduction of my bracket from 28 to 24% and a doubling of my standard deduction.

That’s almost 6.93% higher.

Oooofff...that was a close one, 93.

[JohnStOnge]

You do realize that employees elect how much they have withheld by designation on their W4’s, no?

Yes. And most employees are not going to change their W4s between 2017 and 2018. I won't because my wife won't let me. So everything will be the same between my last paycheck and the next one in February (presumably) except that the withholding guidance will change based on the new rates. Or maybe it'll be the second one in February. But I'll be able to tell when it changes.

[JohnStOnge]

Just stop, 93. You’re just going to confuse him.

My bad.



Oh, hi! I'm back.

Hey, here are some real numbers that might be useful to JSO. I was just paid yesterday. I did not change my W4 at all for 2018; still claiming zero exemptions. My pay was exactly 6.76% higher after withholding than my pay was in 2017. 2.29% of that is due to the 2018 federal employee raise for the Washington DC locale, so my pay went up 4.47% (deducting the raise for apples to apples comparison). This lines up almost exactly with what I was expecting with reduction of my bracket from 28 to 24% and a doubling of my standard deduction.

Well, after a small salary increase for the new year my take home pay increased by a whopping 1%. But if I do the math I'd be taking a whopping $3.65 more per paycheck home if the percentage of my salary deducted for Federal taxes was the same as it was at the end of 2017. I must assume, based on the minimal difference as well as the articles I've read, that there hadn't been any change in application of the previous withholding guidance. We'll see what happens with my next paycheck.

[CAA Flagship]

You do realize that employees elect how much they have withheld by designation on their W4’s, no?

Yes. And most employees are not going to change their W4s between 2017 and 2018. I won't because my wife won't let me. So everything will be the same between my last paycheck and the next one in February (presumably) except that the withholding guidance will change based on the new rates. Or maybe it'll be the second one in February. But I'll be able to tell when it changes.

I might have red meat for dinner. But then again, it could be white meat. Maybe even the other white meat. But it could be seafood. No, not in St. Louis. But a pasta dish could be in order. I'll know when it's served.

[Ivytalk]

Yes. And most employees are not going to change their W4s between 2017 and 2018. I won't because my wife won't let me. So everything will be the same between my last paycheck and the next one in February (presumably) except that the withholding guidance will change based on the new rates. Or maybe it'll be the second one in February. But I'll be able to tell when it changes.

I might have red meat for dinner. But then again, it could be white meat. Maybe even the other white meat. But it could be seafood. No, not in St. Louis. But a pasta dish could be in order. I'll know when it's served.

But will your wife let you have pasta?

[93henfan]

I might have red meat for dinner. But then again, it could be white meat. Maybe even the other white meat. But it could be seafood. No, not in St. Louis. But a pasta dish could be in order. I'll know when it's served.

But will your wife let you have pasta?

No pasta; rice!

[CAA Flagship]

[JohnStOnge]

Good grief fellas. Look. For most people, the change in withholding will tell them whether their effective tax rate goes up or down.

Me, I'm just looking at take home pay for my own paycheck. Since my wife is self employed my household effective tax rate is more complicated and we'll have to wait and see what happens in 2018.

But since the Republicans are banking on people seeing more in their take home pay as a political advantage I am interested in seeing the change in the take home pay.

[AZGrizFan]

Good grief fellas. Look. For most people, the change in withholding will tell them whether their effective tax rate goes up or down.

Me, I'm just looking at take home pay for my own paycheck. Since my wife is self employed my household effective tax rate is more complicated and we'll have to wait and see what happens in 2018.

But since the Republicans are banking on people seeing more in their take home pay as a political advantage I am interested in seeing the change in the take home pay.

Doesn’t change the fact that no matter what happens to their paycheck it’s NOT the same thing as their “effective tax rate”.

My paycheck is going up. So is my effective tax rate. See?

[93henfan]

Some more hard numbers for JSO, as I now can view my official earnings statement. Below are my withholdings for 2017 and 2018 as a percentage of my gross pay. Zero exemptions:

2017 / 2018

Federal Tax: 20.32% / 17.69%
OASDI (SocSec): 6.11% both years
Delaware Tax: 5.23% / 5.29%
Medicare: 1.43% both years

[Col Hogan]

Some more hard numbers for JSO, as I now can view my official earnings statement. Below are my withholdings for 2017 and 2018 as a percentage of my gross pay. Zero exemptions:

2017 / 2018

Federal Tax: 20.32% / 17.69%
OASDI (SocSec): 6.11% both years
Delaware Tax: 5.23% / 5.29%
Medicare: 1.43% both years

So what you’re saying is you are getting some of those “crumbs”...

[HI54UNI]

New tax forms are out