Author Topic: Trump-Republican tax plan, Bad for large families  (Read 50959 times)

Offline Deal Guy

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Re: Trump-Republican tax plan bad for large families
« Reply #315 on: December 02, 2017, 11:28:38 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?

At least you get $500, even though it doesn't make up for the $4000 exemption loss.

"Meanwhile, filers with dependents who are not qualified children may be able to claim a new $500 nonrefundable credit per dependent. Under the House bill, there would be a new $300 per person credit for parents and dependents over 17."

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Re: Trump-Republican tax plan bad for large families
« Reply #316 on: December 02, 2017, 11:45:29 PM »
Don't get this at all. My taxes will skyrocket.
Due to which provision? The higher CTC and possible elimination of AMT are windfalls for many in the frum community.
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

Offline good sam

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Re: Trump-Republican tax plan bad for large families
« Reply #317 on: December 03, 2017, 12:05:01 AM »
But CTC doesn't offset the loss of personal exemption, does it?

I'm concerned about SALT deduction (including property tax) and student loan interest.
If you don't care why would you comment?
HT: DMYD

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Re: Trump-Republican tax plan bad for large families
« Reply #318 on: December 03, 2017, 12:08:20 AM »
But CTC doesn't offset the loss of personal exemption, does it?

I'm concerned about SALT deduction (including property tax) and student loan interest.
That would depend on how many children and tax bracket.
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

Offline yelped

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Re: Trump-Republican tax plan bad for large families
« Reply #319 on: December 03, 2017, 12:27:44 AM »
That would depend on how many children and tax bracket.
A family making $80k with 2 kids. 12k in property taxes, and another 12k in mortgage interest. Where do they end up? It seems to me more or less the same?

ETA: Is the property tax deduction also removed under the new tax bill? Or only the local/state income tax deduction?

Offline Deal Guy

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Re: Trump-Republican tax plan bad for large families
« Reply #320 on: December 03, 2017, 12:42:38 AM »
A family making $80k with 2 kids. 12k in property taxes, and another 12k in mortgage interest. Where do they end up? It seems to me more or less the same?

ETA: Is the property tax deduction also removed under the new tax bill? Or only the local/state income tax deduction?
Property tax is allowed up to 10k.

But, I dont understand why they made the number 10k for both single and married filers?

For a single filer, who can deduct 10k, it will be very easy to itemize by including some mortgage interest and charity, since his standard deduction is only $12,000.  But for a married couple, 10k of property tax is not enough of an allowance to make it worth to itemize , since the standard deduction is 24k, and without state and local taxes it may be hard to reach over 24k.

Offline ChaimMoskowitz

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Re: Trump-Republican tax plan bad for large families
« Reply #321 on: December 03, 2017, 09:47:38 AM »
Don't get this at all. My taxes will skyrocket.
What's your point? Say thanks to Trump.
I just found a new supply of forks!

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Re: Trump-Republican tax plan bad for large families
« Reply #322 on: December 03, 2017, 09:51:53 AM »
While I am against repealing QTR, it seems like an incredibly unfair rule.

Any changes to QTR? Will the 529 change be a big benefit to our community?

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Re: Trump-Republican tax plan bad for large families
« Reply #323 on: December 03, 2017, 09:52:33 AM »
Any changes to QTR? Will the 529 change be a big benefit to our community?
I think it will though many here disagree. At the very least it makes it easier to save for yeshiva in s tax advantaged way

Offline bubkiz

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Re: Trump-Republican tax plan bad for large families
« Reply #324 on: December 03, 2017, 10:03:36 AM »
I think it will though many here disagree. At the very least it makes it easier to save for yeshiva in s tax advantaged way
I do not know the restrictions and exclusions, but it seems NYS has a $10,000 state tax deduction for 529 plans. Assuming the waiting period for withdrawals is minimal, this is effect would enable a significant amount of tuition to be state-tax deductible.

Offline skyguy918

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Re: Trump-Republican tax plan bad for large families
« Reply #325 on: December 03, 2017, 10:19:37 AM »


I do not know the restrictions and exclusions, but it seems NYS has a $10,000 state tax deduction for 529 plans. Assuming the waiting period for withdrawals is minimal, this is effect would enable a significant amount of tuition to be state-tax deductible.
There's no guarantee that it will remain as is. The state deduction was intended for higher education - if they wanted to they could find a way to keep it limited to yet education.

Offline CPA

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Re: Trump-Republican tax plan bad for large families
« Reply #326 on: December 03, 2017, 10:21:25 AM »
I do not know the restrictions and exclusions, but it seems NYS has a $10,000 state tax deduction for 529 plans. Assuming the waiting period for withdrawals is minimal, this is effect would enable a significant amount of tuition to be state-tax deductible.
From the NYS 529 Plan website

How soon can I begin making withdrawals?

You may make withdrawals at any time, taking into consideration the following guidelines:
•Contributions you make by check, recurring contributions, or electronic bank transfer will be available for withdrawal after seven business days.
•If you request a withdrawal by check at the same time you change your mailing address, the withdrawal will be held for nine business days.
•If you add or change bank information, you need to allow 15 days for withdrawals by electronic transfer

https://www.nysaves.org/home/faqs-managing-your-account.html#how-soon

As the rules are today you can contribute today, withdraw tomorrow to pay qualified tuition (as of now only for collage) and receive a NYS tax deduction.

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Re: Trump-Republican tax plan bad for large families
« Reply #327 on: December 03, 2017, 11:16:19 AM »
I do not know the restrictions and exclusions, but it seems NYS has a $10,000 state tax deduction for 529 plans. Assuming the waiting period for withdrawals is minimal, this is effect would enable a significant amount of tuition to be state-tax deductible.
Unfortunately nj has no such deduction :(. But it’s very possible ny changes it’s deduction if more ppl use it

Offline skyguy918

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Re: Trump-Republican tax plan bad for large families
« Reply #328 on: December 03, 2017, 11:23:30 AM »
I'm also curious what happens to the money already in a 529 - does it all automatically become eligible for K-12 tuition. I'd consider attempting to come up with the full $10k (apparently its per couple, not per kid), which I wasn't otherwise going to do for this year, if there's a reasonable expectation that it would later become usable for K-12.

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Re: Trump-Republican tax plan bad for large families
« Reply #329 on: December 03, 2017, 12:32:33 PM »
I'm also curious what happens to the money already in a 529 - does it all automatically become eligible for K-12 tuition. I'd consider attempting to come up with the full $10k (apparently its per couple, not per kid), which I wasn't otherwise going to do for this year, if there's a reasonable expectation that it would later become usable for K-12.
Don’t do it speculatively. Wait until the bill is signed to law.