General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsI'm not an accountant but here's what I am doing regarding the new tax structure
Frankly I don't trust the administration and Congress with this new tax bill. They have told the IRS to create the new withholding structure which is to show people "Look you will have more money in your pockets monthly."
However, they have eliminated many deductions. So you go to file in 2019 (for the 2018 tax year) and all of the sudden you owe $1,000, $2,000, etc. where before you were breaking even or getting a few bucks back.
I decided, with the help and advice of my accountant, that I am adjusting my withholdings to be the same exact percentage as my 2017 tax year. That way I don't get caught with my pants down potentially in 2019 when filing. If I end up with a big tax return I can dial back the monthly tax withholdings.
LuckyCharms
(17,457 posts)I'm still trying to figure out why I am seeing a yearly increase in my paycheck of about $500, and also showing a decrease in my projected refund (my own spreadsheet) of $500. It's a cash wash out.
hedda_foil
(16,375 posts)Sherman A1
(38,958 posts)with the "windfall" of new tables. Alternately put more into an IRA. It might not be a perfect solution, but I would keep as much money in my hands as possible.
Freddie
(9,273 posts)I'm the payroll person here so I can adjust my own withholding easily, and I'm going to have DH do the same. It's quite possible they made the tax tables "generous" so people will thank Repugs in the midterms, only to have this come back and bite them in the ass when they file next spring.
Scoopster
(423 posts)One of the tips Mom taught me. Your weekly paychecks are smaller, but you usually get a big refund. The only deduction I've been able to take was for student loan interest, but that wasn't much.
winstars
(4,220 posts)Turbineguy
(37,365 posts)With the change in deductions, I'll pay more.
Neema
(1,151 posts)next week to figure out what I can even deduct anymore.
RandomAccess
(5,210 posts)ThoughtCriminal
(14,049 posts)I suspect a lot of people who think they are getting big tax cuts are going to be shocked in 2019 when they owe a lot.
But as long as enough voters are fooled for one more election cycle, they can rob us for two more years and stack the courts for a lifetime.