Anyone else here feel hopelessly lost with all this tax talk?

[stooges44]

Prepaying? SALT?

HUH?? 

[username]

I was. Go slow. start from the beginning, and read, google, and read some more.
You can do it.

[mercaz1]

I am with you about being totally lost

is it worth to prepay if I have less than 10k in property taxes?

[stbaum]

i just called my accountant and asked her to do the work for me 

[aygart]

I am with you about being totally lost

is it worth to prepay if I have less than 10k in property taxes?

Do you have state or local income taxes?

[stooges44]

Do you have state or local income taxes?

Hahaha

Turn this into yet another thread about tax talk.

[mercaz1]

Do you have state or local income taxes?

where is that in the tax return

[henche]

Prepaying? SALT?

HUH?? 

It's easy.

SALT stands for State Allocable Lucrative Taxes, and refers to the amount of state taxes that you pay.  State taxes are very lucrative, because there are few deductions so the state gets a lot of money, and you used to get a deduction so you get money back from the feds.

Next year, they will be less lucrative. So you want to allocate them now.

[stooges44]

i just called my accountant and asked her to do the work for me 

As will I but it still hurts to be in the beis shiur 

[shapsam]

where is that in the tax return

If you get a tax refund than maybe it doesn't pay to prepay because that would deduct from your income so it can effect your EIC etc. look at the EIC chart and minus the amount of your property taxes and you'll see if its worth it.

[aygart]

where is that in the tax return

It would be a separate state tax return. The other thing to check is if you itemized your deductions. You can see that by checking if your tax returns included a Schedule A. If you did not itemize and your income stayed more or less the same then these deductions probably do not make a difference for you.

[mercaz1]

If you get a tax refund than maybe it doesn't pay to prepay because that would deduct from your income so it can effect your EIC etc. look at the EIC chart and minus the amount of your property taxes.

and now I'm still lost

[mercaz1]

It would be a separate state tax return. The other thing to check is if you itemized your deductions. You can see that by checking if your tax returns included a Schedule A. If you did not itemize and your income stayed more or less the same then these deductions probably do not make a difference for you.

I did itemize last year but it was under the 24k so does that make a difference

[aygart]

I did itemize last year but it was under the 24k so does that make a difference

That would mean that if you prepay now it will be part of your 2017 itemized deductions since this year the standard did not go up yet and for 2018 you seem likely to take the standard anyhow. So it seems that you would gain by prepaying.

[ChaimMoskowitz]

How can anyone be lost. Trump and R's promised we can do it on a post card. How much simpler do you want? Look they cut 7 rates down to 3 as they promised. Oops I guess they didn't do that either. 

[aygart]

How can anyone be lost. Trump and R's promised we can do it on a post card. How much simpler do you want? Look they cut 7 rates down to 3 as they promised. Oops I guess they didn't do that either. 

People like you are upset about the promises they did keep. Now you are upset at the ones they didn't?

[ChaimMoskowitz]

People like you are upset about the promises they did keep. Now you are upset at the ones they didn't?

You mean like flipping a coin? Heads they keep a promise and tails they don't. 

[shapsam]

How can anyone be lost. Trump and R's promised we can do it on a post card. How much simpler do you want? Look they cut 7 rates down to 3 as they promised. Oops I guess they didn't do that either. 

First of all Trump never said you'll be able to file on a post card (that was Cruz) and mercaz1 is just tired of winning so much that he's a little confused

[ChaimMoskowitz]

First of all Trump never said you'll be able to file on a post card...

You sure about that?

[aygart]

You mean like flipping a coin? Heads they keep a promise and tails they don't. 

You expected differently from them than any other politician?