Author Topic: Trump-Republican tax plan, Bad for large families  (Read 138486 times)

Online skyguy918

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Re: Trump-Republican tax plan bad for large families
« Reply #480 on: December 13, 2017, 10:21:14 PM »
According to the Wall Street Journal it's still in play and it might be that you can choose one or the other but can't combine both.
Didn't see that, but it personally makes no difference to me. Either way it's a significant step up for me compared to the previous versions.

Offline Deal Guy

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Re: Trump-Republican tax plan bad for large families
« Reply #481 on: December 13, 2017, 10:44:53 PM »
How is it a step up? Both versions in the house and senate passed with 10k deduction.

Offline EJB

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Re: Trump-Republican tax plan bad for large families
« Reply #482 on: December 13, 2017, 10:51:09 PM »
Separation of church and state is not in the constitution

That's how the establishment clause has been interpreted for quite some time. And recognized by the supreme court.

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Offline aygart

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Re: Trump-Republican tax plan bad for large families
« Reply #484 on: December 13, 2017, 11:26:19 PM »
That's how the establishment clause has been interpreted for quite some time. And recognized by the supreme court.
Absolutely not. See Grumet v board of ed of KJ
Feelings don't care about your facts

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Re: Trump-Republican tax plan bad for large families
« Reply #485 on: December 13, 2017, 11:26:40 PM »
Not sure if this was brought up, as  I have been casually following this thread... I met with my accountant today and if you normally pay estimated state taxes for 2017 after the year is over, you should pay it before 12/31 this year. Even though it is for tax year 2017, the deduction goes on when it is received. Paying now can save you some money

Online skyguy918

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Re: Trump-Republican tax plan bad for large families
« Reply #486 on: December 14, 2017, 12:11:50 AM »
How is it a step up? Both versions in the house and senate passed with 10k deduction.
Because I don't pay 10k in property tax, but I do pay more than that in state and local income tax. The House and Senate versions didn't allow for any state and local income tax deduction. It's being reported that the final bill does.

Offline Deal Guy

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Re: Trump-Republican tax plan bad for large families
« Reply #487 on: December 14, 2017, 12:23:21 AM »
Because I don't pay 10k in property tax, but I do pay more than that in state and local income tax. The House and Senate versions didn't allow for any state and local income tax deduction. It's being reported that the final bill does.
true

Offline Deal Guy

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Re: Trump-Republican tax plan bad for large families
« Reply #488 on: December 14, 2017, 12:27:14 AM »
Not sure if this was brought up, as  I have been casually following this thread... I met with my accountant today and if you normally pay estimated state taxes for 2017 after the year is over, you should pay it before 12/31 this year. Even though it is for tax year 2017, the deduction goes on when it is received. Paying now can save you some money
I think it was brought up.
But didn't someone say that whatever you deduct and helps you on your 2017 tax return, will need to end on on your 2018 tax return as income on line 10?
10 ----Taxable refunds, credits, or offsets of state and local income taxes .

So do you gain?

Offline yelped

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Re: Trump-Republican tax plan bad for large families
« Reply #489 on: December 14, 2017, 12:33:33 AM »
Abi they can't raise the corporate tax to 22% to remove the limit on SALT and property taxes. As if the cut from 35% is not enough for the corporations. Only the little guys who have to carefully count every dollar in the grocery store have to deal with such caps on their deductions.

Offline yitzf

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Re: Trump-Republican tax plan bad for large families
« Reply #490 on: December 14, 2017, 12:36:52 AM »
Abi they can't raise the corporate tax to 22% to remove the limit on SALT and property taxes. As if the cut from 35% is not enough for the corporations. Only the little guys who have to carefully count every dollar in the grocery store have to deal with such caps on their deductions.

The debate around the SALT deduction is not a budget limitation, it's about the low tax states not having to subsidize the high tax ones.

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Re: Trump-Republican tax plan bad for large families
« Reply #491 on: December 14, 2017, 12:36:57 AM »
Technically my question applies to anything. Can Congress decide to pass any tax law next year after this overhall?

If yes, then why was this pressure to fit it into 1.5 billion? They could've just left some good parts out, and then passed it next year as separate legislation. No?
They may yet do more
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Re: Trump-Republican tax plan bad for large families
« Reply #492 on: December 14, 2017, 12:39:07 AM »
I think it was brought up.
But didn't someone say that whatever you deduct and helps you on your 2017 tax return, will need to end on on your 2018 tax return as income on line 10?
10 ----Taxable refunds, credits, or offsets of state and local income taxes .

So do you gain?
That is only if you will get it refunded.
Feelings don't care about your facts

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Re: Trump-Republican tax plan bad for large families
« Reply #493 on: December 14, 2017, 12:39:35 AM »
The debate around the SALT deduction is not a budget limitation, it's about the low tax states not having to subsidize the high tax ones.
Do you think that these high tax states will lower their rates? No. So who gets stuck? The poor little guy.

Offline yitzf

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Re: Trump-Republican tax plan bad for large families
« Reply #494 on: December 14, 2017, 12:44:39 AM »
Do you think that these high tax states will lower their rates? No. So who gets stuck? The poor little guy.

Not sure I understand what your saying. If the federal govt needs $100 and each state should give $2, but the federal govt says that since NY spends $ (for NY residents benefit) like drunken sailors they only need to pay 1.25, then when Texas has to pay 2.25 they are subsidizing NY's roads etc.

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Re: Trump-Republican tax plan bad for large families
« Reply #495 on: December 14, 2017, 12:47:38 AM »
Not sure I understand what your saying. If the federal govt needs $100 and each state should give $2, but the federal govt says that since NY spends $ (for NY residents benefit) like drunken sailors they only need to pay 1.25, then when Texas has to pay 2.25 they are subsidizing NY's roads etc.
What percent of tax received is paid by high tax states?
Feelings don't care about your facts

Offline yitzf

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Re: Trump-Republican tax plan bad for large families
« Reply #496 on: December 14, 2017, 12:53:55 AM »
What percent of tax received is paid by high tax states?

How is that relevant. Sure NY and CA have richer people than Alabama.

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Re: Trump-Republican tax plan bad for large families
« Reply #497 on: December 14, 2017, 12:59:31 AM »
That is only if you will get it refunded.
Can you elaborate what that means?
You only need to report the next year if you got a refund from the state?
Meaning if you paid the state 50k because you owed them 50k, and therefore got no refund, there is no need to put anything the next your on line 10 of the 1040?
You only put something on line 10, if you owed the state 49k, but paid them 50k, so you get $1000 refund. That $1000 ends up on line 10 but nothing more?

This idea of prepaying property tax or state tax in 2017 still makes sense? Because if you overpay alot, wont that cause you to get a state refund, which in turn will need to end up on line 10 of your 2018 tax return? Or what am i missing?

Offline mr12

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Re: Trump-Republican tax plan bad for large families
« Reply #498 on: December 14, 2017, 08:23:35 AM »
Can you elaborate what that means?
You only need to report the next year if you got a refund from the state?
Meaning if you paid the state 50k because you owed them 50k, and therefore got no refund, there is no need to put anything the next your on line 10 of the 1040?
You only put something on line 10, if you owed the state 49k, but paid them 50k, so you get $1000 refund. That $1000 ends up on line 10 but nothing more?
Correct, under the tax benefit rule, an expense which was deducted in one year, and was reimbursed in a subsequent years is taxed in year it was reversed.
https://financial-dictionary.thefreedictionary.com/tax+benefit+rule

Offline mr12

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Re: Trump-Republican tax plan bad for large families
« Reply #499 on: December 14, 2017, 08:45:09 AM »
It might be worthwhile to pay even if you'll get the money refunded. Say for example, you're in 15% bracket for 2017, but under new law you'll be in 12% bracket. State taxes which you pay now save you 15%, but when you pick up the refund as income next year, it'll be taxed at 12%. This depends on your exact tax situation, but for many people there could be a scenario where it would save them money.