General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsDoes anyone know if the new tax rates will apply for what we've earned this year, in 2017?
Or will it be April 2019 that the effect of the changes really hits us?
herding cats
(19,566 posts)Next year is up in the wind right now as to what it will be. Their new rules will apply.
PoliticAverse
(26,366 posts)A law that passes in 2018 could in fact change the tax rate on income earned in 2017 or even the validity of
certain deductions on income earned in 2017.
herding cats
(19,566 posts)Which is how they got their simple majority vote on this. I could be wrong, but I was told such earlier this year.
PoliticAverse
(26,366 posts)but regardless I'm unaware of any proposed changed that would actually change 2017 taxation.
SFnomad
(3,473 posts)And it's possible they can't change it with the rules as they're written. But when it comes to reconciliation, they can change the rules. Generally, they don't because they know eventually the other part will be in power again and they won't want them doing the same thing to them for something else.
drray23
(7,637 posts)it will be when you file taxes in fy18.
Hoyt
(54,770 posts)Probably ought to check and see if withholding exemptions are correct to avoid a year end surprise, up or down.
But it doesnt impact income prior tp 2018, unless implementation date is later in 2018 and assuming it passes.
applegrove
(118,745 posts)Last edited Mon Dec 18, 2017, 03:31 PM - Edit history (1)
getting a tax cut. I heard that somewhere.
DeminPennswoods
(15,289 posts)It won't affect 2017.
If the personal exemptions have been eliminated, everyone who wants extra taxes withheld (for ex if you have interest/divident income where no income tax is withheld) is going to have to redo their withholding as most people just use 0, 1, 2, etc number of exemptions instead of a set dollar amount of extra withholding.
nitpicker
(7,153 posts)For singles and married with no dependents, the increase in the standard deduction overcompensates for the elimination of the personal exemption(s).
Overall, the up-front taxable income increases for married people with kids, so there is less in the paycheck unless they don't adjust their withholding. People will have to wait to get their extra CTC credit (if their kids are under 17 years old) in the following year.
((What a heckuva economic stimulus job, GOP!))
PS. There are penalties for significant under-witholding: see IRS Tax Topic 306:
https://www.irs.gov/taxtopics/tc306
Cicada
(4,533 posts)The tax return is due April 15 2018. So we can change rules for it up to April 14 2018 and it is not retroactive. The MEASURE for the tax is income in 2017. But it is not technically a tax retroactive to 2017. It is a tax imposed April 15 2018 measured by something in the past. It could be calculated on income in 1945 but if the return is due, payment is due, April 15 2018 it is technically a 2018 tax. Not a 1945 tax.