The tax windfall that wasn't:

[elleng]

A troubling new IRS report suggests many Americans may be giving money right back to the government. NOV 01, 2018

'Americans like their tax refunds. Refunds are good for tax administration, too. Plenty of evidence shows that tax compliance is higher when taxpayers see refunds on their tax returns.

But millions of Americans looking forward to their tax refunds are about to be disappointed, even upset. They will not see their expected refunds when they file their returns in 2019. Even worse, many will be required to pay extra taxes. Why the change? The Republicans’ push to sell their tax law to the American public is the culprit.

The tax law signed by President Trump in December of 2017 made many changes to the tax code. The standard deduction increased, but the personal exemptions disappeared. Business owners got a rate cut but the deduction for state and local taxes shrunk. Mortgage interest deduction became less generous, but child credit expanded. Because of all these changes and many others, the withholding form that every American employee filed with his or her employer became outdated when 2018 arrived.

Employers needed new information from employees to keep the refunds roughly the same. But getting this information would take time. And Republicans wanted American workers to see tax savings from the 2017 tax law in their paychecks right away, before the 2018 midterm elections — whether these savings were real or not.

So the IRS took a leap of faith, came up with an updated withholding schedule as best it could, and told employers to follow it going forward. The IRS then tried to convince Americans to do a “paycheck checkup” using its new “withholding calculator” to make sure that the employers’ withholding is not grossly off the mark.

Well-intentioned, but how realistic?

Democrats had doubts about the Republican tax strategy all along. Ron Wyden, D-Ore., the highest ranking Democrat on the Senate tax-writing committee, warned all the way back in January that “the Trump administration is tampering with Americans’ paychecks, resulting in a whopping tax bill next year.” The Trump administration dismissed these concerns as “ridiculous.”'>>>

https://www.nydailynews.com/opinion/ny-oped-the-tax-windfall-that-wasnt-20181101-story.html?

[still_one]

1. The elimination of the personal exemption, especially for The Who used to itemize deductions

[Squinch]

2. I'll be paying 3K more this year, but at least I know it. There are many others out there like

me who have no idea that bill is coming.

They believed the bullshit.

[Wellstone ruled]

3. And for couples who

are retired and watching their spending,get ready to get smacked big time.

[Hoyt]

4. Truthfully, most of the people who will owe any significant amount, make enough to absorb

Last edited Sun Dec 23, 2018, 12:49 AM - Edit history (1)

any damage. The IRS almost always give you a year to pay, and probably longer. If folks are low income, it's unlikely they'll find themselves owing anything.

Yeah, there are exceptions, but not many.

There's plenty of stuff to attack trump on that is indisputable.

[SayItLoud]

5. Did you know; You can buy a jet and fully deduct it within the rules of tRUMP's tax law?

[mitch96]

6. "buy a jet and fully deduct it"

Wait, what???? let me get out my check book... Do you take mastercard?
m

[econ 101]

7. I drive a lot for my job as a non union carpenter

I also do not get re-reimbursed for tools and bits. I have no idea to be honest how big a hit I will take, but I am almost certain to come away with a bill.

[mitch96]

8. " I have no idea to be honest how big a hit I will take"

Being on a retired fixed income I'll see this April... Just for that "uncertainty" I have not changed any income,expenses or deductions from 2017 to 2018 so I can see where the cards fall.. My tax bracket went up but there are more deductions... If I break even I'll be happy..
m