Taxes

[Jon]

If someone can't buy food how would they be able to buy a home?

Reminds me of one of the most quotable men to ever warm a seat in the Senate, Dr. S.I. Hayakawa:

On rising fuel prices: "Poor people don't need gas, because they;/'re not working"

On turning over the Panama Canal: "We stole it fair and square"

On the internment of Japanese Americans: "It accelerated their integration into mainstream American society"

Dr S.I. Hayakawa received his PhD from the University of Wisconsin.

[dgies9156]

Not sure what the hot garbage is I just provided the actual increase in taxes. If people want to be in a state of denial that of course is there prerogative , but the fact remains I paid meaningfully more in taxes .

Mine actually went down. A couple of issues specific to my situation but they went down modestly. Will say that for all the "sky is falling" crying when the legislation was written, my effective tax rate may have fallen a couple of points and that's it.

[Herman Cain]

Mine actually went down. A couple of issues specific to my situation but they went down modestly. Will say that for all the "sky is falling" crying when the legislation was written, my effective tax rate may have fallen a couple of points and that's it.

Your experience is the actual case for 90 plus percent of the people who file .

[ATL MU Warrior]

Not sure what the hot garbage is I just provided the actual increase in taxes. If people want to be in a state of denial that of course is there prerogative , but the fact remains I paid meaningfully more in taxes .

Multiple comments about mortgage interest not being deductible.  Incorrect.

Your comment about not being able to deduct state income tax. Incorrect.

[rocket surgeon]

Multiple comments about mortgage interest not being deductible.  Incorrect.

Your comment about not being able to deduct state income tax. Incorrect.

my understanding is that one can only deduct up to $10k of property taxes now.  if you pay more than that in property taxes-congratulations on either having a very nice house or you live in a high tax area.  i have 2 modest homes(the one in Az. saves me) and still don't pay more than $10k combined-yeehaw!

[ATL MU Warrior]

my understanding is that one can only deduct up to $10k of property taxes now.  if you pay more than that in property taxes-congratulations on either having a very nice house or you live in a high tax area.  i have 2 modest homes(the one in Az. saves me) and still don't pay more than $10k combined-yeehaw!

There is a $10k cap on state and local taxes.

[Cheeks]

Your experience is the actual case for 90 plus percent of the people who file .

Correct, or close to it.  Some think tanks say 82% while others estimate around 90%

[Herman Cain]

Multiple comments about mortgage interest not being deductible.  Incorrect.

Your comment about not being able to deduct state income tax. Incorrect.

Fair enough.

In my case, My overall state taxes were 310k versus 10k SALT deduction allowable  and I had no interest, so bottom line all I had was increased standard deduction of 24k.  So in my case I did not have benefit of SALT.

Correct, or close to it.  Some think takes say 82% while others estimate around 90%

Will be interesting to see what actual total is. 

[warriorchick]

my understanding is that one can only deduct up to $10k of property taxes now.  if you pay more than that in property taxes-congratulations on either having a very nice house or you live in a high tax area.

In the metro Chicago area, the property tax on a $300K home can approach $10K.

And if I am not mistaken, that $10K also includes all state and local taxes, including income tax.

[mudeltaforcegurl]

What I have surmised is that higher income earners are not paying less in taxes, the higher standard deduction is causing homeowners to get lower refunds because of not deducting mortgage interest, and many tax payers should have but did not change the number allowances, and are surprised to find out they owe or are getting a small refund.

The only people that have experienced favorable results from the tax law changes are those with a unique circumstances and those who have earned far less in 2018 than in years past.

[mudeltaforcegurl]

Reminds me of one of the most quotable men to ever warm a seat in the Senate, Dr. S.I. Hayakawa:

On rising fuel prices: "Poor people don't need gas, because they;/'re not working"

On turning over the Panama Canal: "We stole it fair and square"

On the internment of Japanese Americans: "It accelerated their integration into mainstream American society"

Dr S.I. Hayakawa received his PhD from the University of Wisconsin.

Someone bought a home they couldn't afford, and now they can't afford food?

[LloydsLegs]

For those of you who live in Illinois, and support parochial education, you no longer have to pay income tax (at least while the program lasts). Under the Invest in Kids program, you may receive a tax CREDIT of 75 cents on the dollar for contributions to scholarships for elementary and HS students in need. 

So, for example, if you typically give $10,000 to your HS alma mater for scholarships, you can give the same amount and reduce your state income tax bill by $7,500. Or, you can gross up your gift to $40,000, resulting in the same "out of pocket" to you of $10,000, but $40,000 to your school of choice and $30,000 back to you in a refund from the state.

The program has a $100 million limit.  I am not sure if there is an individual limit.

So, for 2018 and 2019, I will be paying no money to the state of Illinois in income taxes. I have effectively elected to allocate all of my Illinois income taxes to schools which I already supported in amounts out of pocket that were consistent with prior giving.

If there were greater participation, This would be a public policy disaster.  (I know- shocking). My hope is that there will be some corresponding reduction in the burden/cost of public education, but in all events it would never approach dollar for dollar.

It is designed as a 5 year program, and I do not believe that it will be renewed. Passed with budget/school funding legislation as a last minute add-on with heavy support from Chicago Archdiocese. 

Other states, mostly in the south, offer similar programs. 

[Pakuni]

Someone bought a home they couldn't afford, and now they can't afford food?

Or maybe someone bought home they could afford years ago, but a change in circumstances (family health crisis, disability, job loss, divorce, etc.) left them house rich, cash poor.

[mudeltaforcegurl]

Or maybe someone bought home they could afford years ago, but a change in circumstances (family health crisis, disability, job loss, divorce, etc.) left them house rich, cash poor.

Sell the house

[mudeltaforcegurl]

For those of you who live in Illinois, and support parochial education, you no longer have to pay income tax (at least while the program lasts). Under the Invest in Kids program, you may receive a tax CREDIT of 75 cents on the dollar for contributions to scholarships for elementary and HS students in need. 

So, for example, if you typically give $10,000 to your HS alma mater for scholarships, you can give the same amount and reduce your state income tax bill by $7,500. Or, you can gross up your gift to $40,000, resulting in the same "out of pocket" to you of $10,000, but $40,000 to your school of choice and $30,000 back to you in a refund from the state.

The program has a $100 million limit.  I am not sure if there is an individual limit.

So, for 2018 and 2019, I will be paying no money to the state of Illinois in income taxes. I have effectively elected to allocate all of my Illinois income taxes to schools which I already supported in amounts out of pocket that were consistent with prior giving.

If there were greater participation, This would be a public policy disaster.  (I know- shocking). My hope is that there will be some corresponding reduction in the burden/cost of public education, but in all events it would never approach dollar for dollar.

It is designed as a 5 year program, and I do not believe that it will be renewed. Passed with budget/school funding legislation as a last minute add-on with heavy support from Chicago Archdiocese. 

Other states, mostly in the south, offer similar programs.

You're still paying Federal income tax.

[Jay Bee]

Should MU have a football program?

[Pakuni]

Sell the house

Your empathy is something to behold.

[The Sultan]

Sell the house

An expensive and emotionally consuming undertaking.

[Jay Bee]

Your empathy is something to behold.

Sounds like she just believes in personal responsibility. I know many of *you* do not.

[Pakuni]

Sounds like she just believes in personal responsibility. I know many of *you* do not.

Yeah, that financially strapped couple definitely shouldn't have allowed their child to get cancer.
And that disabled former maintenance worker shouldn't have let himself get hit by a drunk driver.
And, seriously, what did those kids think was going to happen when they allowed themselves to be born to a single mother who'd lose her job a decade later?

[mudeltaforcegurl]

Sounds like she just believes in personal responsibility. I know many of *you* do not.

That's right.

[mudeltaforcegurl]

Yeah, that financially strapped couple definitely shouldn't have allowed their child get cancer.
And that disabled former maintenance worker shouldn't have let himself get hit by a drunk driver.
And, seriously, what did those kids think was going to happen when they allowed themselves to be born a mother who'd lose her job a decade later?

Why do you assume everyone had unexpected bad circumstances? There are some in these situations but there are also many entitled irresponsible people living beyond their means trying to impress others with their illusion of success.

[LloydsLegs]

You're still paying Federal income tax.

Yes...and ...

[Pakuni]

Why do you assume everyone had unexpected bad circumstances? There are some in these situations but there are also many entitled irresponsible people living beyond their means trying to impress others with their illusion of success.

I'm not the one who finds it mind boggling that a person can own a house but still struggle to afford food, or who believes such a person lacks personal responsibility. That's your assumption.
I'm just pointing out some of the many instances in which such an assumption makes a you-know-what out of the person making it.

[The Sultan]

Why do you assume everyone had unexpected bad circumstances? There are some in these situations but there are also many entitled irresponsible people living beyond their means trying to impress others with their illusion of success.

It's OK to have empathy for someone's situation regardless of how they got into those circumstances.