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Replies to post #300528 on Tornado Alley (PROG)
02/09/19 11:28 AM
I'm a CPA with a small tax practice
My husband and I are solid middle class with two college age dependents. Nothing changed from last year to this year. Last year our refund was 4000 this year we owe 3000. That’s a 7000 swing not in our favor; we are both sick about this.
I’ve prepared a few returns (W2s and 1099s are just now being received) and refunds are significantly less or people owe for the first time in years. It’s gonna be tough tax season.
https://www.democraticunderground.com/100211797335
7. I'm really sorry for your sake.
$3K is a lot to owe. Especially when you also have to pay estimated tax for next year each quarter.
My accountant told me that many people he's talked to are having what he calls 'sticker shock' about their taxes.
Good may come of this - people are starting to think about the criminal negligence of the GOP in passing this giant unnecessary tax cut for billionaires and corporations, which was the very height of fiscal irresponsibility.
I'm not thinking working Americans are going to be very happy sacrificing so the billionaires can have just a little more. I'm not.
21. We filed an extension for ours.
We know it is going to be bad. We usually pay in a few hundred or get a small return. All of our eligible deductions are gone this year.
The timing is perfect for GOPers. After the 2018 elections. If this kicked in last tax season, they all would have been voted out. They are hoping their base forgets by the 2020 elections. And remember the home interest deduction hits those in blue states more than those in red states, as home prices are higher.
After the 2020 elections the middle class tax "tax break" will get even worse. This is why the Democrats need to hammer this point home and expose what 2020 tax rates will be like for the middle class in their 2021 returns. Unfortunately the will not be able to completely fix this mess for 2021, but they can for 2022. There won't be enough time between taking office and tax season.
I wonder where all the people are on my local news feed that loved their "tax cut" last year. They were bragging about bringing home more money in their paychecks. I tried telling them they were going to be sorry when they find out they owe money at the end of the year. For that you can imagine the names I was called. I laughed and told them I hope they get everything they voted for.
24. "taxcut" is an increase for many bluestate middleclass wage earners as
deductions were capped at ridiculously low levels that effect many more in wealthier democratic strongholds. This was a basis of the taxcut for the wealthy. Transfer of wealth to them
47. The withholding tables are absolutely broken and you can't convince me it was an accident
You don't have that many people swinging from refund to owing, by that large a margin, without meaning for it to happen.
46. Yep. I just wrote a check for two grand. I am not ****ing happy.
I was incredibly lucky that the HR person at work warned us what was happening with withholdings so I could keep that money in a separate account and not touch it. But I feel really bad for people whose HR didn't notice, or people who aren't in a situation where they can put aside the extra money. Going to be a tough spring for a whole lot of people who didn't do anything wrong.
49. For us, it's the Blue State penalty.
It's the main reason we're going to be owing a lot more in federal taxes.
Communities that choose to fully fund their schools and libraries, that are good stewards of their highways and bridges, are the ones the GOP wants to punish.
AI
