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2019-02-12 3:49 PM

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Champion
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Alabama
Subject: Taxes
Just filed our income tax return. Had been reading people were shocked that they had smaller returns. We are getting back $4k or 4x what we normally get. I always over withhold. According to Turbo Tax the main differense is the Standard Deduction doubled. I still paid a boat load of taxes but am happy. To be fair my wife retired last year and reduced our income. But we both started drawing pensions equal to about 50% of her income.


2019-02-13 8:52 PM
in reply to: 0

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Expert
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50010010010025
Evergreen, Colorado
Subject: RE: Taxes

Haven't done ours yet. We're both business owners so we don't do the whole withholding/refund thing, just write a huge check at the end of the year. I suspect the changes in the state tax credit and mortgage interest deductions will affect us a bit because of some investments we made in 2018. Seems this is varying a lot from state to state because of the state income tax issue.



Edited by Stacers 2019-02-13 8:54 PM
2019-02-14 7:00 AM
in reply to: Stacers

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Extreme Veteran
3023
20001000
Maryland
Subject: RE: Taxes

i got 1700 back, usually get 4000

2019-02-14 8:00 AM
in reply to: dmiller5

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Pro
15487
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Subject: RE: Taxes

Originally posted by dmiller5

i got 1700 back, usually get 4000

Did you get more back on your paychecks? 

I haven't been to my tax lady yet, but it usually ends up that we owe another 5000.00-7000.00 because we don't let the govt. keep more than we owe during the year.

It's kind of funny the way people look at taxes as only what their refund is or how much they "owe".  Like I said, my wife and I write a check for 5-7 thousand .....but we pay about $45,000 per year in taxes.  THAT'S the number that counts....not the refund or the end of year check we write. (of course,  Stacers,  that's not the same for business owners such as yourself....what you pay at the end of the year IS your tax bill)

2019-02-14 8:00 AM
in reply to: dmiller5

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Champion
9850
5000200020005001001001002525
Alabama
Subject: RE: Taxes
Originally posted by dmiller5

i got 1700 back, usually get 4000




Did you total tax go up or down? I read that after the new tax law passed many companies changed their withholding meaning you got more take home pay in your check. The 'problem' is many people did not even notice an extra $40 a week in their checks but that that is an extra $2000 over the year.
2019-02-14 10:15 AM
in reply to: Rogillio

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Extreme Veteran
3023
20001000
Maryland
Subject: RE: Taxes

Originally posted by Rogillio
Originally posted by dmiller5

i got 1700 back, usually get 4000

Did you total tax go up or down? I read that after the new tax law passed many companies changed their withholding meaning you got more take home pay in your check. The 'problem' is many people did not even notice an extra $40 a week in their checks but that that is an extra $2000 over the year. [/QUOTE

check your math there



2019-02-14 10:16 AM
in reply to: Left Brain

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Extreme Veteran
3023
20001000
Maryland
Subject: RE: Taxes

Originally posted by Left Brain

Originally posted by dmiller5

i got 1700 back, usually get 4000

Did you get more back on your paychecks? 

I haven't been to my tax lady yet, but it usually ends up that we owe another 5000.00-7000.00 because we don't let the govt. keep more than we owe during the year.

It's kind of funny the way people look at taxes as only what their refund is or how much they "owe".  Like I said, my wife and I write a check for 5-7 thousand .....but we pay about $45,000 per year in taxes.  THAT'S the number that counts....not the refund or the end of year check we write. (of course,  Stacers,  that's not the same for business owners such as yourself....what you pay at the end of the year IS your tax bill)

 

it is a bit difficult for me to tell.  my income changed, my retirement contribution went way up, and i payed off one of my student loans.  all that noise makes it hard for me to decide what the change was.  i do know that i lost some deductions that i used to have

2019-02-14 10:17 AM
in reply to: 0

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Pro
15487
500050005000100100100100252525
Subject: RE: Taxes

40 x 52?

2080

As for your other reply......it's taxes dude.....the more you make the more you pay.  It's a good problem. 



Edited by Left Brain 2019-02-14 10:20 AM
2019-02-14 10:27 AM
in reply to: Left Brain

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Pro
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Subject: RE: Taxes

And........here's a presidential candidate that doesn't get it either. LMAO

https://www.foxnews.com/politics/harris-fact-checked-over-nonsensical-claim-trump-hiked-taxes-on-middle-class

2019-02-14 10:33 AM
in reply to: dmiller5

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Champion
9850
5000200020005001001001002525
Alabama
Subject: RE: Taxes
Originally posted by dmiller5

Originally posted by Left Brain

Originally posted by dmiller5

i got 1700 back, usually get 4000

Did you get more back on your paychecks? 

I haven't been to my tax lady yet, but it usually ends up that we owe another 5000.00-7000.00 because we don't let the govt. keep more than we owe during the year.

It's kind of funny the way people look at taxes as only what their refund is or how much they "owe".  Like I said, my wife and I write a check for 5-7 thousand .....but we pay about $45,000 per year in taxes.  THAT'S the number that counts....not the refund or the end of year check we write. (of course,  Stacers,  that's not the same for business owners such as yourself....what you pay at the end of the year IS your tax bill)

 

it is a bit difficult for me to tell.  my income changed, my retirement contribution went way up, and i payed off one of my student loans.  all that noise makes it hard for me to decide what the change was.  i do know that i lost some deductions that i used to have





The sooner you can take the new standard deduction the better. For most, that means paying off your house. We haven't been able to itemize for years since we don't have a mortgage so when they doubled the standard deduction we were ecstatic.


Note: I am an engineer not a financial advisor. Most financial advisors would probably say just the opposite. They would likely advise you to leverage the equity in your house. IOW, keep a 90% low interest mortgage on your house and use the equity for other investments that pay bigger dividends....like rental houses, condos, the stock market.
2019-02-14 11:21 AM
in reply to: Left Brain

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Extreme Veteran
3023
20001000
Maryland
Subject: RE: Taxes

Originally posted by Left Brain

40 x 52?

2080

As for your other reply......it's taxes dude.....the more you make the more you pay.  It's a good problem. 

DOH, read it as 40 a paycheck



2019-02-14 11:22 AM
in reply to: Rogillio

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Extreme Veteran
3023
20001000
Maryland
Subject: RE: Taxes

Originally posted by Rogillio
Originally posted by dmiller5

Originally posted by Left Brain

Originally posted by dmiller5

i got 1700 back, usually get 4000

Did you get more back on your paychecks? 

I haven't been to my tax lady yet, but it usually ends up that we owe another 5000.00-7000.00 because we don't let the govt. keep more than we owe during the year.

It's kind of funny the way people look at taxes as only what their refund is or how much they "owe".  Like I said, my wife and I write a check for 5-7 thousand .....but we pay about $45,000 per year in taxes.  THAT'S the number that counts....not the refund or the end of year check we write. (of course,  Stacers,  that's not the same for business owners such as yourself....what you pay at the end of the year IS your tax bill)

 

it is a bit difficult for me to tell.  my income changed, my retirement contribution went way up, and i payed off one of my student loans.  all that noise makes it hard for me to decide what the change was.  i do know that i lost some deductions that i used to have

The sooner you can take the new standard deduction the better. For most, that means paying off your house. We haven't been able to itemize for years since we don't have a mortgage so when they doubled the standard deduction we were ecstatic. Note: I am an engineer not a financial advisor. Most financial advisors would probably say just the opposite. They would likely advise you to leverage the equity in your house. IOW, keep a 90% low interest mortgage on your house and use the equity for other investments that pay bigger dividends....like rental houses, condos, the stock market.

well i have like 27 years left on my mortgage so.... if you have a few extra hundred thousand lying around, please ill give you the bank account number to transfer to :P

2019-02-14 12:42 PM
in reply to: 0

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Pro
15487
500050005000100100100100252525
Subject: RE: Taxes

Originally posted by dmiller5

Originally posted by Rogillio
Originally posted by dmiller5

Originally posted by Left Brain

Originally posted by dmiller5

i got 1700 back, usually get 4000

Did you get more back on your paychecks? 

I haven't been to my tax lady yet, but it usually ends up that we owe another 5000.00-7000.00 because we don't let the govt. keep more than we owe during the year.

It's kind of funny the way people look at taxes as only what their refund is or how much they "owe".  Like I said, my wife and I write a check for 5-7 thousand .....but we pay about $45,000 per year in taxes.  THAT'S the number that counts....not the refund or the end of year check we write. (of course,  Stacers,  that's not the same for business owners such as yourself....what you pay at the end of the year IS your tax bill)

 

it is a bit difficult for me to tell.  my income changed, my retirement contribution went way up, and i payed off one of my student loans.  all that noise makes it hard for me to decide what the change was.  i do know that i lost some deductions that i used to have

The sooner you can take the new standard deduction the better. For most, that means paying off your house. We haven't been able to itemize for years since we don't have a mortgage so when they doubled the standard deduction we were ecstatic. Note: I am an engineer not a financial advisor. Most financial advisors would probably say just the opposite. They would likely advise you to leverage the equity in your house. IOW, keep a 90% low interest mortgage on your house and use the equity for other investments that pay bigger dividends....like rental houses, condos, the stock market.

well i have like 27 years left on my mortgage so.... if you have a few extra hundred thousand lying around, please ill give you the bank account number to transfer to :P

We've taken the equity out of our house twice in the 25 years we have lived in it.  Both times we invested the money......and those investments are now worth more than the house.  Of course we still have a house payment, but a house is a unique item on your credit.  You can walk away at any time and the mortgage co can't come after any money or other assets you have....only the house.  We don't worry about it much because we can either sell it for what we owe on it, or walk away from it after we pay cash for the house we will retire in.  Either way, our retirement won't have any loans involved so credit score is no matter.....we'll pay cash.



Edited by Left Brain 2019-02-14 12:42 PM
2019-02-14 1:14 PM
in reply to: Left Brain

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Champion
9850
5000200020005001001001002525
Alabama
Subject: RE: Taxes
We had our house built in 1990....got 30 year mortgage. Interest rates were 11%. A couple years later interest rates had dropped to 7% and we refinanced to a 15 year and paid it off in 2007. We have no debt. I am retiring in 30 days. Life is good!
2019-02-14 1:21 PM
in reply to: 0

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Pro
15487
500050005000100100100100252525
Subject: RE: Taxes

Originally posted by Rogillio We had our house built in 1990....got 30 year mortgage. Interest rates were 11%. A couple years later interest rates had dropped to 7% and we refinanced to a 15 year and paid it off in 2007. We have no debt. I am retiring in 30 days. Life is good!

I have no debt either, besides a house that I will not retire in.  At this point, I don't care at all what ends up happening.....I'll either sell it or walk away from it if the value falls.....my family is raised.  For sure, I would not have been able to afford the retirement I have set up without the use of the equity as we went along.  If the bank ends up with the house, so be it.



Edited by Left Brain 2019-02-14 1:21 PM
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