All the details are just..... details. They don't mean squat, except if you paid significantly less along the way. Time value of money is real and can be calculated.
I would be interested if most are paying more or less total taxes this year vs last on the same income.
Amazing isn't it, that so many people judge how the tax laws affected them, just by comparing incomes and refunds to last year, when it has nothing to do with the price of tea in China.
Originally Posted by Pro-Hunt
How does your total tax paid compared to last year (assuming equal income)?Amazing isn't it, that so many people judge how the tax laws affected them, just by comparing incomes and refunds to last year, when it has nothing to do with the price of tea in China.
Cool, that is a win!
I made $1112 more this year than last year. I paid less tax this year per paycheck. I brought home about $30 more each check. And I got almost exactly the same amount back this year in federal and state as the previous year. I made approximately $67,000 last year gross. I must be a rich person because the tax cuts were only for the rich!
Exactly ^^^
The size of refunds is a completely bogus indicator.
2017 - paid 9.8% of total income to federal taxes
2018 - paid 8.35% of total income to federal taxes.
overall I made more money not a lot but I paid less in federal taxes for 2018 then 2017.
John the Garage Doorman
If you were paid bi-weekly like most people you paid $332 more in tax this year than last. A reasonable amount considering the $1,112 increase in income. I would guess your tax rate didn't move up or down much at all.I made $1112 more this year than last year. I paid less tax this year per paycheck. I brought home about $30 more each check. And I got almost exactly the same amount back this year in federal and state as the previous year. I made approximately $67,000 last year gross. I must be a rich person because the tax cuts were only for the rich!
Cool, 1.45% decrease isn't massive but I would take it!
On my federal income tax:
For the 2017 calendar my tax paid was 8.68% of my taxable income.
For the 2018 calendar my tax paid was 7.72% of my taxable income.
My actual tax rate dropped 0.96%.
Assuming an equal taxable income of $40,000 between years equates to saving $384 due to the tax cut.
My withholding rate decreased by 1.69% or 0.73% more than my tax rate did.
So when I filed, I ended up owing more than last year, but I did get a tax cut. Now, if I didn't know how to figure it, and I just compared incomes and refunds, I'd be pissed, that we were supposed to get a tax cut, but I ended up owing more than I did last year.
Last edited by mossie3; 02-14-2019 at 03:19 PM.
The people who equate the size of their refund from this year to last as the only indicator of whether they paid more or less tax are the same kinds of people who equate fuel economy with the number of miles they can drive on a single tank of gas.
__________________________________________________ _______________
"If God had intended us to drink beer, He would have given us stomachs."
-David Daye
Lol, ain't that the truth.
Agreed, you are $384 plus a little ahead.
The best part of the new tax laws for small S-Corp business owners is 20% of the profits you make as a business are not taxable on your personal return.
John the Garage Doorman
My effective tax rate is up 2.1% over last year.
Already ugly.
Praying for a Cure
There is the flip side, it will be interesting to see how it all shakes out in the end.
If you meant refund, that is true. However, that is due to lower withholdings rather than higher taxes. According to the IRS, 80% of taxpayers will pay less than the prior year.
20% won’t and they aren’t the wealthy, they are the upper working class.
I got smoked, but I have it figured out. Put my feet up and let others pay.
Reply With Quote