Did my 2018 taxes last night...

Discussion in 'The Dungeon' started by wood600rr, Jan 29, 2019.

  1. Jedb

    Jedb Professional Novice :-)

    Did my taxes yesterday.
    I work in tech, and claim zero for federal and state.
    No change to base salary

    Federal
    Last year: $3,800 refund (yes, I know it's my own money)
    This year: I need to pay $400.
    Net swing, not in my favor: $4,200.

    State:
    Last year: ~$300 refund
    This year: I need to pay $400
    Net swing, not in my favor: $700

    Net tax swing for FY2018: $4,900 not in my favor.

    Thanks, Trump.. :Puke:
     
  2. In Your Corner

    In Your Corner It's a little-known fact...

    Trump gets the blame for state taxes also?
    Did your take-home pay remain the same?
     
  3. Jedb

    Jedb Professional Novice :-)

    Take home pay was static.
    Trump can take $4,200 of the $4,900 worth of :Puke:
     
  4. kangasj

    kangasj Well-Known Member

    What state do you live in?
     
  5. Jedb

    Jedb Professional Novice :-)

    Oregon
     
  6. kangasj

    kangasj Well-Known Member

    Interesting. So what deductions did you lose that made your taxes go up?
     
  7. Aberk

    Aberk Well-Known Member

    You also said base pay. Did you have any bonuses or commissions that may have been taxed differently?
     
  8. Jedb

    Jedb Professional Novice :-)

    I'm salaried, no commissions, nor bonuses
    Federal: tax tables narrowed, change in the standard deduction vs. itemization.
    State: No significant changes that I was able to see in the tables, nor enacted laws.

    Based on discussions with my accountant, the capital gains distributions which happened in November (near market peak) were ~2x last years, and that was the difference in the swing, when coupled with the tax table narrowing.

    That seems to be the difference. Although he said my 2018 number, under the 2017 rules would have resulted in an @ $1800 refund.
    Which makes sense based on the capital gains part.
     
  9. Mongo

    Mongo Administrator

    So it's not really Trump and it really is the amount you were actually paid....
     
  10. GRH

    GRH Well-Known Member

    Tax lady I use said the payroll deduction decreased with the Trump tax cut so it caught several people off guard. She said if she knew they were going to do that she would have warned her clients to increase their payroll deductions to compensate. Her comment was that it was to try to get people to spend more and juice the economy.
     
  11. Mongo

    Mongo Administrator

    We knew our deduction decreased, worked great as it's less in the interest free loan we give them.
     
  12. GRH

    GRH Well-Known Member

    Indeed, I'd rather have the money during the year than loan it to them
     
  13. Aberk

    Aberk Well-Known Member

    Me too, but I'd also like to not get hit with an underpayment penalty while claiming all zeros...
     
    Jedb likes this.
  14. GRH

    GRH Well-Known Member

    Yeah, I've never understood why I have to claim zero + extra $ with a family. The charts don't jive to me.
     
  15. Jedb

    Jedb Professional Novice :-)

    Sorry Sean, but I disagree with you.

    Salary was static, no changes to take home pay (net). Capital Gains went up. I claimed zero exemptions in both years (state and federal)
    The changing of the deduction and the changes to the rate tables are the only differences (from a tax law standpoint) from 2017.
    This year: I owe $400
    This year, with 2017 rules instead: Refund* of ~$1,800

    Using the same rules (2017) my refund* would have gone from $3,800 to $1,800, which would be consistent with the Capital Gains increases I had.
    Using the 2018 rules, my refund* went from $3,800 to owing $400. Even allowing for the $2000 swing associated with my capital gains, to go from an $1,800 refund* to owing $400 is a delta of $2,200, which goes directly to the changes made in 2018.

    For 2019, I'm just going to make a couple of pre-payments to the tax man so I net out at a refund* of $200ish.

    *Yes I know it's my own money that's getting refunded to me.
     
  16. dsapsis

    dsapsis El Jefe de los Monos

  17. Mongo

    Mongo Administrator

    You're comparing all kinds of weird shit - how about this....

    Find out what percentage of your actual job income you paid in federal tax. Compare the two years. If you had capital gains last year that put you in a different bracket than this year they aren't comparable so all the numbers you're talking don't make sense to me sorry. Probably just me tho :D
     
    kangasj likes this.
  18. Jedb

    Jedb Professional Novice :-)

    Fully agree. Probably just you. :D

    The capital gains amount would not send me to a new bracket.
    Payment into the federal taxes was ~ $300 more than last year.
     
  19. Mongo

    Mongo Administrator

    So you paid $300 more in fed taxes on the exact same income?
     
  20. thrak410

    thrak410 My member is well known

    Sounds like that tax lady is an idiot because everyone knew the payroll deduction decreased. Thats why you got more money in your paycheck! I'd find a new tax lady if I were you.
     

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