Tax Cuts and Jobs Act (TCJA) 2017 and My Calculations

Posted by $ pixelate 5 years, 11 months ago to Economics
20 comments | Share | Best of... | Flag

Regarding the Tax Cuts and Jobs Act (TCJA) of 2017, I decided to finally conduct some research.

High level overview including marginal rate tables:
https://www.irs.com/articles/2018-fed...

Savings in light of the more simplified 1040 (forms) / fewer individuals hit with the AMT (Alternative Minimum Tax):
https://taxfoundation.org/the-tax-cut...

The official government HR document (1100+ pages):
https://docs.house.gov/billsthisweek/...

Long Story Short -- I filled out the year 2018 form 1040 (presently in draft format) and compared my taxes to last year.
- I took the new standard deduction ($12,000) instead of itemizing / did not need to fill out the AMT.
- Total paperwork processing time was 30 minutes (compared to 3+ hours in the past).
- Fed taxes confiscated dropped by $2,500 compared to last year (even though I am earning 3% more).

In summary -- the TCJA offers a substantial benefit and is going in the right direction.


Add Comment

FORMATTING HELP

All Comments Hide marked as read Mark all as read

  • Posted by $ 5 years, 11 months ago
    One of the things that boggles my mind is when leftist neighbors and coworkers balk at the very idea of an individual being allowed to keep more of what they earn. I often hear the phrase "the State really needs that money" and what they are really saying, is that their welfare entitlements (huge teacher pensions, SSDI, "free" health care) need that (MY) money.
    Reply | Mark as read | Best of... | Permalink  
  • Posted by GaryL 5 years, 11 months ago
    I am praying that your calculations are more correct than not. We have seen 2 promotions here this year and I worry about the tax hit we could take with them.
    Reply | Mark as read | Best of... | Permalink  
  • Posted by $ Olduglycarl 5 years, 11 months ago
    Was a mortgage interest deduction available on top of the 12K standard deduction?
    Reply | Mark as read | Best of... | Permalink  
    • Posted by freedomforall 5 years, 11 months ago
      That's a subsidy to the banks. They don't deserve anything (except perhaps the gallows for treason since 1913.) It also drives up the price (demand) of housing (which makes people feel they are getting ahead when the banksters just steal through inflation that they create.) This is an improvement in policy that encourages people to pay off mortgages faster and start to save and become more independent. (OK, I'm dreaming, people will just buy more overpriced iPhones. Apple will love it.)
      Reply | Mark as read | Parent | Best of... | Permalink  
      • Posted by $ Olduglycarl 5 years, 11 months ago
        I know, we just are in favor of ways inwhich to get some of our stolen cash back before it gets pissed away into someone else's pockets.
        Not one to deny anyone a fair profit, My first house, back millions of years ago, I paid cash...no such thing these days. Even the house I built myself in 97, with all the site work and foundation paid in cash...it still cost me a bundle...had no choice but to take a loan...it was intended to be our retirement home.
        Now I am looking for ways to get out!...maybe live in a motor home with 4 wheel drive so I can bug out if need be...
        Reply | Mark as read | Parent | Best of... | Permalink  
        • Posted by freedomforall 5 years, 11 months ago
          Repeal the 16th!
          Abolish the Fed!
          Reply | Mark as read | Parent | Best of... | Permalink  
          • Posted by $ Olduglycarl 5 years, 11 months ago
            It seems re-organization, instead of Abolition is under way...All their [TRUSTs] have been Executive ordered out of existence...but haven't tried to verify that.
            Reply | Mark as read | Parent | Best of... | Permalink  
            • Posted by freedomforall 5 years, 11 months ago
              The bankers still have plenty of private accounts offshore, e.g., Caymans, etc.
              They still create credit from nothing (9x the amount of deposits by customers) and charge lots of interest (stealing from real producers) on money they never earned. They control most of the government whenever they wish (because they effectively have unlimited funds.) The federal police work for the bankers, preventing anyone from creating a competitive currency; the only "legal tender" allowed is created by bankers. The FBI arrests and jails anyone who tries to compete with the bankers monopoly on money creation, or tries to repatriate money from bankers to honest people. If it is more profitable for the bankers that America goes to war, there will be a war. Had it been up to the American people, WW1 and WW2 would not have involved Americans. But bankers made big profits from loans (created from nothing) made to both sides of the conflicts.The 16th amendment guarantees that when bankers create debt (Federal Reserve Notes) for the US federal government, we are enslaved to pay the interest and the principle. They must create more and more debt or there won't be any funds to pay interest to the bankers because the only way that money is created is by creation of more debt; so, by definition, there must be inflation- stealing from everyone who produces any excess over his immediate needs. Any excess will be stolen slowly (at best) regardless of how well most producers invest it.
              It is the biggest con game in history.
              "Re-organization" is just part of the con.
              Reply | Mark as read | Parent | Best of... | Permalink  
              • Posted by $ Olduglycarl 5 years, 11 months ago
                A con?...don't think so this time...but time will tell,..can't trust that it will all work out though...we are not even sure Trump will be successful in his government clean up endevors.
                Reply | Mark as read | Parent | Best of... | Permalink  
                • Posted by freedomforall 5 years, 11 months ago
                  I hope it can be done, but unless the fed is disbanded (and made unconstitutional via amendment) it won't matter. The power to control the money is higher than one POTUS.
                  "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.... I believe that banking institutions are more dangerous to our liberties than standing armies.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
                  - Thomas Jefferson
                  Reply | Mark as read | Parent | Best of... | Permalink  
                  • Posted by $ Olduglycarl 5 years, 11 months ago
                    Yea, Yea,...issuing our own currency...That's the ticket...in the comforts of our own homes no less.

                    shhh...don't wake me up, it's a great dream...laughing
                    Reply | Mark as read | Parent | Best of... | Permalink  
                    • Posted by freedomforall 5 years, 11 months ago
                      If you want your currency to be acceptable to others you would have to provide a reason for others to accept it.
                      So your home currency would be of limited usefulness. However, before 1913 many banks issued their own currency backed only by their own assets.
                      Banks do not have to do that today. We stupid sheep just trust them. We are fools to do so.
                      Competing currencies in a free market would be a massive boon to everyone - after a period of adjustment to having freedom again.
                      Reply | Mark as read | Parent | Best of... | Permalink  
    • Posted by $ 5 years, 11 months ago
      From what I saw of the draft version of 1040 and wording, No -- the 12k standard deduction did not include an option for a mortgage interest deduction. I did not read too closely though since my itemized deductions have typically been near $8k ... so the standard deduction worked out nicely.

      Although the 1040 is still two pages, it consists of essentially two half pages ... there are only about half the number of "lines" in the 2018 form as in the prior year.
      Reply | Mark as read | Parent | Best of... | Permalink  
      • Posted by $ Olduglycarl 5 years, 11 months ago
        Hmm, I may get screwed...my deductions are generally in the 20/30K range...not to mention, living in ConnTaxticut which is a marxist tax you to death state.
        Reply | Mark as read | Parent | Best of... | Permalink  
        • Posted by $ 5 years, 11 months ago
          I used to be in that boat myself -- large interest deductions while paying off some real-estate loans. I was reading that there could be a section of tax-payers that do not come out well with the tax changes; however, at this time, it looks like I should do alright.
          Reply | Mark as read | Parent | Best of... | Permalink  
          • Posted by mspalding 5 years, 11 months ago
            Yes, my deductions are usually close to 24k (for a married return). So I won't benefit from the increased standard deduction and I'll lose with the elimination of 8k in exemptions. But the tax rates are lower so I may come out even. I'm still glad they did this. It will reduce tax compliance costs and free up my fellows to produce more cool stuff.
            Reply | Mark as read | Parent | Best of... | Permalink  

FORMATTING HELP

  • Comment hidden. Undo