Author Topic: Trump-Republican tax plan, Bad for large families  (Read 138458 times)

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.
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Offline bubkiz

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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?

Offline EJB

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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.

Online 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.

Offline EJB

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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

Online 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.

Offline EJB

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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.

Online skyguy918

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Re: Trump-Republican tax plan bad for large families
« Reply #330 on: December 03, 2017, 12:39:01 PM »
Don’t do it speculatively. Wait until the bill is signed to law.
I think no matter what it's speculative for 2017. Even if it gets signed into law (which they're hoping to do before EOY), that's not the whole picture - there could be a reactionary change on the state side of things.

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Re: Trump-Republican tax plan bad for large families
« Reply #331 on: December 03, 2017, 12:40:38 PM »
And good calculator online that lets you compare your taxes going forward to the old plan?

Not sure how accurate this one is, but it was the first one to give me some real numbers:

http://taxplancalculator.com/calc
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Online skyguy918

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Re: Trump-Republican tax plan bad for large families
« Reply #332 on: December 03, 2017, 12:55:52 PM »
Not sure how accurate this one is, but it was the first one to give me some real numbers:

http://taxplancalculator.com/calc
I've already done a pretty thorough calc on the house bill that showed I'd be paying more tax, and they say I'd pay less tax. As far as I can tell, there don't appear to be any major items they excluded, so I'm not sure where the difference arises.

Offline ChaimMoskowitz

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Re: Trump-Republican tax plan bad for large families
« Reply #333 on: December 03, 2017, 01:34:16 PM »
Not sure how accurate this one is, but it was the first one to give me some real numbers:

http://taxplancalculator.com/calc
Not accurate at all for me.
I just found a new supply of forks!

Offline Dan

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Re: Trump-Republican tax plan bad for large families
« Reply #334 on: December 03, 2017, 01:38:41 PM »
Not sure how accurate this one is, but it was the first one to give me some real numbers:

http://taxplancalculator.com/calc
Where's the option to check for how much pass-through income you have?
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Offline EJB

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Re: Trump-Republican tax plan bad for large families
« Reply #335 on: December 03, 2017, 01:46:09 PM »
Where's the option to check for how much pass-through income you have?

Most of us don’t have pass through income

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Re: Trump-Republican tax plan bad for large families
« Reply #336 on: December 03, 2017, 02:03:06 PM »
Most of us don’t have pass through income
It is actually very common from corner groceries to Amazon resellers
Feelings don't care about your facts

Offline churnbabychurn

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Re: Trump-Republican tax plan bad for large families
« Reply #337 on: December 03, 2017, 02:16:58 PM »
It is actually very common from corner groceries to Amazon resellers
Yes, virtually every small business is pass through

Offline EJB

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Re: Trump-Republican tax plan bad for large families
« Reply #338 on: December 03, 2017, 04:49:17 PM »
Yes, virtually every small business is pass through
Why can’t you get in on lower corporate rate?

Offline ChaimMoskowitz

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Re: Trump-Republican tax plan bad for large families
« Reply #339 on: December 03, 2017, 04:51:39 PM »
Yes, virtually every small business is pass through
Doesn't everyone on this forum have a small business or two?
I just found a new supply of forks!