Author Topic: Trump-Republican tax plan, Bad for large families  (Read 51662 times)

Offline yitzf

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Re: Trump-Republican tax plan bad for large families
« Reply #300 on: December 02, 2017, 09:45:03 PM »
If you take the deduction on Schedule A and there is an overpayment of State income tax it will taxable the following year

But how about if there is no SALT deduction the following year, so there might not even be a place to include it...

Offline CPA

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Re: Trump-Republican tax plan bad for large families
« Reply #301 on: December 02, 2017, 09:48:03 PM »
But how about if there is no SALT deduction the following year, so there might not even be a place to include it...
You would receive a 1099-G from the state and it is included in income on line 10 of the 1040

Offline Deal Guy

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Re: Trump-Republican tax plan bad for large families
« Reply #302 on: December 02, 2017, 10:06:34 PM »
If you take the deduction on Schedule A and there is an overpayment of State income tax it will taxable the following year
How is there a overpayment of state tax, that will be traceable the next year?
Isn't it true that someone might me able to prepay state tax and get a deduction this year, since they pay it this year in 2017?

Offline CPA

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Re: Trump-Republican tax plan bad for large families
« Reply #303 on: December 02, 2017, 10:18:40 PM »
How is there a overpayment of state tax, that will be traceable the next year?
Isn't it true that someone might me able to prepay state tax and get a deduction this year, since they pay it this year in 2017?
The state that received the overpayment will issue you a 1099-G stating the overpayment and the IRS gets a copy as well.

Yes, you can prepay and get a deduction for 2017 however you will be taxed on the overpayment in 2018 (if you itemized in 2017)

Offline Deal Guy

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Re: Trump-Republican tax plan bad for large families
« Reply #304 on: December 02, 2017, 10:25:15 PM »
The state that received the overpayment will issue you a 1099-G stating the overpayment and the IRS gets a copy as well.

Yes, you can prepay and get a deduction for 2017 however you will be taxed on the overpayment in 2018 (if you itemized in 2017)
Why will they tax you for an overpayment?
You are paying them, not them paying you.
(Don't take a refund, just defer it to the next year.  No? )

Offline aygart

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Re: Trump-Republican tax plan bad for large families
« Reply #305 on: December 02, 2017, 10:28:07 PM »
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

Offline CPA

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Re: Trump-Republican tax plan bad for large families
« Reply #306 on: December 02, 2017, 10:31:51 PM »
Why will they tax you for an overpayment?
You are paying them, not them paying you.
(Don't take a refund, just defer it to the next year.  No? )
Because you got a deduction on a tax payment to the state which you received back. Otherwise you can pay 50k to the State receive back 40k as a refund and deduct the full 50k on your Schedule A. Overpayment is whether you receive it or roll it forward - same difference

https://blog.turbotax.intuit.com/tax-tips/is-my-state-tax-refund-taxable-and-why-90/

Offline aygart

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Re: Trump-Republican tax plan bad for large families
« Reply #307 on: December 02, 2017, 10:41:34 PM »

Source WSJ
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

Offline Deal Guy

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Re: Trump-Republican tax plan bad for large families
« Reply #308 on: December 02, 2017, 10:42:41 PM »
Because you got a deduction on a tax payment to the state which you received back. Otherwise you can pay 50k to the State receive back 40k as a refund and deduct the full 50k on your Schedule A. Overpayment is whether you receive it or roll it forward - same difference

https://blog.turbotax.intuit.com/tax-tips/is-my-state-tax-refund-taxable-and-why-90/
You are correct

Offline Deal Guy

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Re: Trump-Republican tax plan bad for large families
« Reply #309 on: December 02, 2017, 10:53:30 PM »
You don't think they will backdate this to 1/1/17?
No way they will do that.
As it is the senate had to push off the corporate reduction till 2019, because it raises the deficit too much. So they wont start this bill before 2018.

Offline Deal Guy

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Re: Trump-Republican tax plan bad for large families
« Reply #310 on: December 02, 2017, 10:57:17 PM »
Is the Senate bill bad for lets say someone with a 18, 20 and 22 year old at home, who they still are feeding and clothing?
They dont get to take a penny of the $2,000 child tax credit, yet they lost the $4,050 exemption for each of them. Is there something in the bill that addresses these older children dependents?

Offline EJB

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Re: Trump-Republican tax plan bad for large families
« Reply #311 on: December 02, 2017, 11:04:09 PM »
Because you got a deduction on a tax payment to the state which you received back. Otherwise you can pay 50k to the State receive back 40k as a refund and deduct the full 50k on your Schedule A. Overpayment is whether you receive it or roll it forward - same difference

https://blog.turbotax.intuit.com/tax-tips/is-my-state-tax-refund-taxable-and-why-90/
No way to make a 2018 estimated payment instead of 2017?

Offline churnbabychurn

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Re: Trump-Republican tax plan bad for large families
« Reply #312 on: December 02, 2017, 11:04:40 PM »
Is the bill good for anyone besides corps?

Offline ExGingi

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Re: Trump-Republican tax plan bad for large families
« Reply #313 on: December 02, 2017, 11:06:39 PM »
Is the bill good for anyone besides corps?
CPAs and lawyers. It keeps them employed.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline good sam

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Re: Trump-Republican tax plan bad for large families
« Reply #314 on: December 02, 2017, 11:13:25 PM »

Source WSJ
Don't get this at all. My taxes will skyrocket.
If you don't care why would you comment?
HT: DMYD