We're heading into a non-virus related season that may spell more trouble for GOP.

[Pacifist Patriot]

If communicated effectively to voters, this could get some independents and even potentially moderate Republicans to commit to voting for a Democrat. Democrats running for federal office need to be attune to this and take advantage of it - especially those running for Congress.

Tax season

I've been trying to warn my employees for the last several years that the Trump Wealthcare Act (Tax Cuts and Jobs Act of 2017) was going to bite them in the ass a few years down the road.

As more and more people prep their tax returns this year, watch the screaming to start and then gain in volume. A lot of folks are in for unpleasant surprises, especially if they did not opt to withhold an additional flat dollar amount above and beyond the rate at which their payroll service withheld taxes based on the allowances on their W4.

These services were left pretty much guessing and have consequently withheld too little from many people's paychecks. Especially if you are in a two income family or work multiple jobs. Even claiming 0 allowances on your W4 may not have been enough. Pass a certain threshold of under-withholding, and you're also going to get hit with a penalty for not paying enough throughout the year. Voters in that category are going to be extra pissed off.

Nothing anyone can do about 2019 taxes at this point, but if you are relying on a W4 you haven't changed recently to withhold the correct amount in 2020, you might want to consider updating it.

https://www.irs.gov/newsroom/faqs-on-the-2020-form-w-4

There is an online worksheet you can fill out that will generate a sample W4 to let you know how much additional taxes you should be withholding each pay check. Some of you may need to prepare yourselves for sticker shock.

[brewens]

1. Last year my Trumper brother-in-law claimed people were whining because they didn't

adjust their withholding. They got the tax cut, spent it, then flipped out because they weren't happy with their return. I said it was because they really didn't get a tax cut, or only a very tiny one that didn't make any difference. They understood the withholding, they just expected the tax cut to cover the extra in their paycheck and then some.

[Pacifist Patriot]

15. I went around and around with a relative who just couldn't grasp that...

$10 more take home pay 26 times a year, but owing $400 come April 01 was NOT a tax cut. (Numbers made up to simplify my point) He honestly thought as long as he was depositing more in his bank account each pay day, he'd gotten a tax cut.

[FoxNewsSucks]

17. Is he also scared of Corona Beer?

[Pacifist Patriot]

27. Wouldn't surprise me.

[safeinOhio]

2. Last year I got very little back, so

I change my withholding and got my usual $5K back this year. Fed and State together.

[marybourg]

3. By having twice as much withheld,

you could get $10,000 back! Without interest or dividends, of course.

[safeinOhio]

8. One of the reasons I withhold more.

About a quarter of my income is dividends and capital gains. I can never figure out what it'll be so I have no problem letting them hold on to it rather than write a check. Most of my income is from SS. I have half of my pension check with held. For got about the changes last year.

[marybourg]

10. Well, now that you saw your total tax bill for 2019,

all you have to do is have that amount withheld for 2020, and you’ll be protected from any penalties, and you’ll get to earn a little bit of interest, and you won’t be giving tRump an interest- free loan. You can do the same every year with the last year’s tax amount (not refund, total tax for the year )

[safeinOhio]

12. Dividend and Capital Gains change every year.

I sometimes sell and buy stocks and dividends can change every quarter.
My brother is a money type person and he is able to do that. Every time I try, I screw up. It ends up being a forced savings for me. At my age, I'm trying to spend down my investment by about 4 or 5 percent a year. I usually end up gaining more than I plan for, but this years market may more than make up for that and I'll end up over that 4 or 5 percent. If I were younger I'd being reinvesting those dividends and building wealth. Now my goal is to have the last check I write bounce.

Thanks for the advice.

[marybourg]

29. Yes, but if you pay what you owed last year,

you’re “covered” as far as the IRS is concerned. And after awhile you’ll get into a rhythm with it.

[safeinOhio]

30. Thanks, I'll try again

but just to see what happens. Then late I might try it for real.

[central scrutinizer]

4. I under withheld

for 2018 and I had to write checks totaling over 4K to the feds and the state. In 2019 I took a distribution from my traditional IRA which would make my social security 85% taxable. So I adjusted my withholding but way overcompensated. So I’m getting 8K in refunds. I fucking hate giving them an interest free loan. I’d like to be within 1K plus or minus.

[Pacifist Patriot]

6. Yep, the uncertainty of adjusting withholding is also ticking people off.

Relative predictably went totally wonky. Even if people don't understand the tax code and how it affects them at the bottom line, they do understand the process being screwy. That was enough for me to convince a habitual Republican at work to switch to the Democrats. You never know what angle is going to get through to someone.

[marybourg]

11. See my post #10 above.

[central scrutinizer]

19. Good advice

But, I’m not taking a big distribution this year so my income is going to be very different for 2020. A lower percentage of social security will be taxable. I gave the money in 2019 to my daughter so she had enough down payment to buy a house. She’s on her own now making mortgage payments.

[machoneman]

21. I hear you but getting that close (+/-) to $1k is mighty hard to do!

[mcar]

5. We're sure seeing a difference this year

We run 2 businesses out of our home, one a non-profit. We have lots of deductions as a result. Last year, we got $2000 back. This year we're going to owe.

[Hortensis]

7. ! nt

[Laura PourMeADrink]

16. Can you please explain what the difference is, bottom

Line between 2018 and 2019? Why are people going to be worse off this year than last?

[gab13by13]

20. I agree

Now when 2024 rolls around I believe tax breaks for the unwashed go away.

[central scrutinizer]

9. Another financial factor

If the stock market doesn’t rebound, people will not be very happy when they get their first quarter 401K or IRA statement in early April. The third quarter statements in 2008, arriving in October, showing how badly Bushco fucked things up, helped fuel the blue tsunami in November.

[Mr.Bill]

13. Were the republicans really stupid enough

to set this to blow up during an election year?

[Pacifist Patriot]

14. That's a rhetorical question, right?

[JDC]

18. This year I received the lowest refund in 20 years

Also, there is also a nuance that applies this year. If you have a child that turns 17 in 2019, no child tax credit for that child. My son turned 17 in Nov. full time, live at home high school student. Ridiculous.

Also, not being able to itemize again this year is a killer.

F the GOP and Donald the Orange

[machoneman]

22. Funny, but the GOP was never good at math, let alone the tax impacts of their 1% giveaway!

[dalton99a]

23. Kick

[Recursion]

24. Yep. This one smacked me this year

I usually work it out so that I'm withholding about what I owe, maybe $100 over or under, but no big refunds or nasty surprises. This year? I owe 3 grand. Thanks, Trump.

[iluvtennis]

25. Very surpised people didn't notice it for the 2018 returns. Hopefully they wake up this year. nt

[Pacifist Patriot]

28. Some did.

And some have short memories. A colleague bitched about it last year and started over again this year. I reminded him we had the same conversation last March and got an "oh yeah, I forgot that."

[House of Roberts]

26. I've made no withholding changes so far.

My Trump tax cut caused me to owe the IRS $200 last year, with a $75 penalty for one month with no insurance. This year, I owe $200 without any penalty. Before Trump I usually got back a $700 to $1000 refund.

We basically got a withholding cut, combined with a tax increase. The rubes are stupid enough to think they got a tax cut.