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+--- Thread: Tax Season!! (/showthread.php?tid=1827)
Tax Season!! - chascornell - 02-08-2019
The IRS made everyone’s employer change withholdings when the new tax law came out, and some of the withholdings were incorrectly calculated
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RE: Tax Season!! - Otter - 02-08-2019
(02-08-2019, 11:07 AM)fenders53 Wrote: Can someone explain how "they" can change the tax code, then hit you with a penalty for not adjusting your withholding that year? Am I missing something here?
The new withholding calculator issued by the IRS in 2018 did a poor job of calculating withholding. It resulted in a lot of people not withholding enough from their pay, and owing the IRS once the tax bill came due this year.
I got lucky, as my bonus last year was paid under the old withholding tables and resulted in a refund payable this year. Have already submitted a W-4 to adjust my withholding during this year, as it looked like I would have to write a hefty check in 2020 if I didn't.
RE: Tax Season!! - fenders53 - 02-08-2019
That makes sense but Chas mentioned a "penalty". After reading it again, I assume he is actually just referring to additional tax tax owed. And I understand how that will make the financially challenged somehow think their tax rates went up when they file.
RE: Tax Season!! - Otter - 02-08-2019
(02-08-2019, 02:09 PM)fenders53 Wrote: That makes sense but Chas mentioned a "penalty". After reading it again, I assume he is actually just referring to additional tax tax owed. And I understand how that will make financially challenged somehow think their tax rates went up when they file.
Some folks did see their total tax liability go up. Thankfully, I did not. However, people who used to benefit from a lot of personal exemptions and deduct a hefty amount of state and local taxes are those most likely to have seen their federal income tax burden increase.
RE: Tax Season!! - fenders53 - 02-08-2019
(02-08-2019, 02:20 PM)Otter Wrote:(02-08-2019, 02:09 PM)fenders53 Wrote: That makes sense but Chas mentioned a "penalty". After reading it again, I assume he is actually just referring to additional tax tax owed. And I understand how that will make financially challenged somehow think their tax rates went up when they file.
Some folks did see their total tax liability go up. Thankfully, I did not. However, people who used to benefit from a lot of personal exemptions and deduct a hefty amount of state and local taxes are those most likely to have seen their federal income tax burden increase.
That was my understanding after reading this thread. I just read "penalty" and thought "fine" which didn't make sense to me if your employer caused it. I suppose I should do my taxes soon. I can't remember the last time I took anything other than the standard deduction, but I do have rental property profit to compute. Hopefully that hasn't changed significantly.
RE: Tax Season!! - ChadR - 02-08-2019
Fenders,
With your rental property being profitable, you can get up to a 20% deduction on the profit.
RE: Tax Season!! - fenders53 - 02-08-2019
(02-08-2019, 06:50 PM)ChadR Wrote: Fenders,
With your rental property being profitable, you can get up to a 20% deduction on the profit.
Thanks Chad. That is great news. I did a little digging and saw the big increase in the standard deduction. That pleases me as it helps some of the people I see in real life at my retirement job. The folks I mentioned earlier in the thread. Folks willing to work pretty hard for a lowish wage rather than stay home and look for a handout. Sure they would be in a better position now if they had a better education, or funded their own retirement like I did, so they aren't in a jam at age at age 70. But it is what it is and it pleases me when we provide an incentive to make your own way in this world. I didn't like the trend under the last presidency. Saw too many able bodied people mooching. I don't want to see an over-reaction from the current guy. I think we are on a bad course when we encourage people to stay home because they can't afford child care costs without a big assist at tax time. I hope things like that stay in the tax law even though I don't benefit a dime from it.
I need to get educated on taxes before I start drawing from my 401K and multiple pensions in three years. I have no idea if my rental property and such with still make sense.
RE: Tax Season!! - fenders53 - 02-08-2019
(02-08-2019, 06:50 PM)ChadR Wrote: Fenders,
With your rental property being profitable, you can get up to a 20% deduction on the profit.
Thanks Chad. That is great news. I did a little digging and saw the big increase in the standard deduction. That pleases me as it helps some of the people I see in real life at my retirement job. The folks I mentioned earlier in the thread. Folks willing to work pretty hard for a lowish wage rather than stay home and look for a handout. Sure they would be in a better position now if they had a better education, or funded their own retirement like I did, so they aren't in a jam at age at age 70. But it is what it is and it pleases me when we provide an incentive to make your own way in this world. I didn't like the trend under the last presidency. Saw too many able bodied people mooching. I don't want to see an over-reaction from the current guy. I think we are on a bad course when we encourage people to stay home because they can't afford child care costs without a big assist at tax time. I hope things like that stay in the tax law even though I don't benefit a dime from it. It encourages responsible behavior and helps our productivity. I really need to get educated on taxes before I start drawing from my 401K and multiple pensions in three years. I have no idea if my rental property and such with still make sense.
RE: Tax Season!! - Otter - 02-15-2019
Every year around this time I start to question my BEP, BIP, and BPY holdings, as K-1 season comes around . . .
RE: Tax Season!! - DividendGarden - 02-15-2019
(02-15-2019, 10:38 AM)Otter Wrote: Every year around this time I start to question my BEP, BIP, and BPY holdings, as K-1 season comes around . . .
I used to hate K1's and would avoid buying anything that used them. Since then, I've stopped doing my own taxes and now I don't care if it's a K1. It's freeing!
RE: Tax Season!! - rayray - 02-18-2019
(02-15-2019, 12:06 PM)DividendGarden Wrote:(02-15-2019, 10:38 AM)Otter Wrote: Every year around this time I start to question my BEP, BIP, and BPY holdings, as K-1 season comes around . . .
I used to hate K1's and would avoid buying anything that used them. Since then, I've stopped doing my own taxes and now I don't care if it's a K1. It's freeing!
Me too....not a big deal the K-1 just makes me WAIT.
RE: Tax Season!! - DividendGarden - 02-18-2019
(02-18-2019, 11:12 AM)rayray Wrote:(02-15-2019, 12:06 PM)DividendGarden Wrote: I used to hate K1's and would avoid buying anything that used them. Since then, I've stopped doing my own taxes and now I don't care if it's a K1. It's freeing!
Me too....not a big deal the K-1 just makes me WAIT.
Exactly, I used to file asap at the beginning of February. Now, because of K1's, I file in early April or late March. No biggie, just a timing shift.