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Author Topic: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch  (Read 2384 times)

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Online Cyber Liberty

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Re: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch
« Reply #25 on: January 31, 2018, 09:03:11 pm »
Quote from: InHeavenThereIsNoBeer on January 31, 2018, 08:05:59 pm
Actually, what is being seen is reduced withholding.  It could very well turn out that people who are seeing bigger paychecks will end up having to cut the gov't a nice fat check next year (or get a big fat rebate).

Maybe., but I doubt it.  The withholding is based on how much the IRS plans to steal at the end of the year, and they want to get their grubs on that cash as soon as possible.
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Offline dfwgator

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Re: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch
« Reply #26 on: January 31, 2018, 09:19:38 pm »
Quote from: Cyber Liberty on January 31, 2018, 09:03:11 pm
Maybe., but I doubt it.  The withholding is based on how much the IRS plans to steal at the end of the year, and they want to get their grubs on that cash as soon as possible.

I always try to owe as much as I can without paying the penalty.  Why give the government an interest-free loan, which is what essentially withholding is.
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Online Cyber Liberty

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Re: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch
« Reply #27 on: January 31, 2018, 09:27:01 pm »
Quote from: dfwgator on January 31, 2018, 09:19:38 pm
I always try to owe as much as I can without paying the penalty.  Why give the government an interest-free loan, which is what essentially withholding is.

Agreed.  I haven't taken a refund in years, since I realized that's exactly what a "tax refund" is. 
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Offline GrouchoTex

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Re: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch
« Reply #28 on: January 31, 2018, 09:50:04 pm »
Quote from: dfwgator on January 31, 2018, 09:19:38 pm
I always try to owe as much as I can without paying the penalty.  Why give the government an interest-free loan, which is what essentially withholding is.
I've been paying $500.00 to $1200.00 every April 15th for the last 10 years or so.
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Offline thackney

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Re: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch
« Reply #29 on: February 01, 2018, 01:07:44 pm »
Quote from: InHeavenThereIsNoBeer on January 31, 2018, 08:05:59 pm
Actually, what is being seen is reduced withholding.  It could very well turn out that people who are seeing bigger paychecks will end up having to cut the gov't a nice fat check next year (or get a big fat rebate).

Do you think the change in withholding is NOT based upon the changes in taxes to be owed?
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Offline Sanguine

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Re: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch
« Reply #30 on: February 01, 2018, 02:18:30 pm »
Quote from: thackney on February 01, 2018, 01:07:44 pm
Do you think the change in withholding is NOT based upon the changes in taxes to be owed?

You didn't ask me, but I looked at the new tax tables and those numbers compare pretty closely with the change in withholding.
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Offline InHeavenThereIsNoBeer

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Re: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch
« Reply #31 on: February 01, 2018, 07:41:36 pm »
Quote from: thackney on February 01, 2018, 01:07:44 pm
Do you think the change in withholding is NOT based upon the changes in taxes to be owed?

I suspect it probably is based on an estimation of the taxes to be owed, and applied in a sort of one-size-fits-all fashion.  The changes to deductions are going to affect folks' total tax burden in different ways, and for many of them that will not be reflected in withholding.
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Offline thackney

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Re: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch
« Reply #32 on: February 01, 2018, 07:52:23 pm »
Quote from: InHeavenThereIsNoBeer on February 01, 2018, 07:41:36 pm
I suspect it probably is based on an estimation of the taxes to be owed, and applied in a sort of one-size-fits-all fashion.  The changes to deductions are going to affect folks' total tax burden in different ways, and for many of them that will not be reflected in withholding.

I'm not following you.  Do you have an example?
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Offline InHeavenThereIsNoBeer

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Re: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch
« Reply #33 on: February 01, 2018, 09:27:21 pm »
Quote from: thackney on February 01, 2018, 07:52:23 pm
I'm not following you.  Do you have an example?

Let's say you and I make the same amount of money, and the IRS estimates that at our level of income we will see a $1,200 tax cut this year.  They will, in theory, adjust our withholding down by $100/month.

You normally take the standard deduction, which is greatly increased.  Sweet. 

I have a home equity loan and several adult children (huh?) living with me, making me one of the probably few people who are going to end up paying more under the new laws. 

If we look only at our paychecks this month, we're both going to feel like we got a nice tax cut.  Come next spring when we look at our actual tax burdens, I might not be so happy after all.

While I think that overall most people will see both a reduction in withholding and a reduction in total tax burden, my original point was simply that one does not necessarily imply the other.


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Offline NavyCanDo

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Re: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch
« Reply #34 on: February 01, 2018, 10:53:41 pm »
My tax savings won't be known for another week, but we did learn what our bonus is, which is paid later this month. 19 Days.  The highest in my 31 years at the company was 14 days. Typically its between 9 and 10.
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Offline Drago

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Re: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch
« Reply #35 on: February 02, 2018, 05:35:08 am »
Must be a glitch!  :shrug:  Our withholding is down a "whopping" 0.19% ($1.50) per paycheck (2 week pay period) so far in 2018.
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Offline Frank Cannon

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Re: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch
« Reply #36 on: February 02, 2018, 05:36:52 am »
Maybe I should start paying taxes so I can experience some of this excitement.
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Offline thackney

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Re: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch
« Reply #37 on: February 02, 2018, 01:24:16 pm »
Quote from: InHeavenThereIsNoBeer on February 01, 2018, 09:27:21 pm
Let's say you and I make the same amount of money, and the IRS estimates that at our level of income we will see a $1,200 tax cut this year.  They will, in theory, adjust our withholding down by $100/month.

You normally take the standard deduction, which is greatly increased.  Sweet. 

I have a home equity loan and several adult children (huh?) living with me, making me one of the probably few people who are going to end up paying more under the new laws. 

If we look only at our paychecks this month, we're both going to feel like we got a nice tax cut.  Come next spring when we look at our actual tax burdens, I might not be so happy after all.

While I think that overall most people will see both a reduction in withholding and a reduction in total tax burden, my original point was simply that one does not necessarily imply the other.

Okay, that helps.

Home equity still applies if it was used for a capital improvement to the property.  Taxpayers with non-child dependents get a bone thrown to them as well in the form of a new, nonrefundable $500 tax credit for each non-child dependent. This new credit applies to children over the age of 17, elderly parents, and adult children with a disability.

But yes, some people that had certain deductions that may no longer exist, should be informed before they spend the money.
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Offline NavyCanDo

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Re: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch
« Reply #38 on: February 06, 2018, 04:26:41 pm »
Quote from: thackney on February 02, 2018, 01:24:16 pm
Okay, that helps.

Home equity still applies if it was used for a capital improvement to the property.  Taxpayers with non-child dependents get a bone thrown to them as well in the form of a new, nonrefundable $500 tax credit for each non-child dependent. This new credit applies to children over the age of 17, elderly parents, and adult children with a disability.

But yes, some people that had certain deductions that may no longer exist, should be informed before they spend the money.

Extending part the child/dependent tax credit beyond 17 is a real blessing for us. Or 16 year old is on the autism spectrum and developing slower than others his age.
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Offline NavyCanDo

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Re: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch
« Reply #39 on: February 07, 2018, 10:42:01 pm »
RATS!

First Feb paycheck had no change at all. All I can figure is that the pay period for it ended Jan 31 so did not qualify, and I would have to wait until next payday.
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Offline Right_in_Virginia

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Re: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch
« Reply #40 on: February 07, 2018, 11:19:14 pm »
Quote from: NavyCanDo on February 07, 2018, 10:42:01 pm
RATS!

First Feb paycheck had no change at all. All I can figure is that the pay period for it ended Jan 31 so did not qualify, and I would have to wait until next payday.

It's possible your company didn't have the tax changes incorporated into the payroll system for January.

If so, your first paycheck for February could make you smile... bigly   Fingers crossed.    ^-^

Keep us posted @NavyCanDo
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Offline NavyCanDo

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Re: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch
« Reply #41 on: February 08, 2018, 02:57:28 am »
My wife's cousin a retired police officer reported her first check  had $168 less fed withholding taken out. That would be sweet.
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Offline mountaineer

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Re: First Tax Cuts Are Hitting Paychecks And They’re So Good Some People Think It’s A Glitch
« Reply #42 on: February 08, 2018, 03:47:55 pm »
NBC's Katy Tur and her Twitter followers are still annoyed about the American workers' good fortune, as demonstrated by their response to a CNBC report of what drugstore chain CVS is doing (because something is NOT better than nothing, in their estimation):
Quote
CNBC‏Verified account @CNBC
CVS to hike wages, introduce paid parental leave with windfall from new tax law

 Katy Tur‏Verified account @KatyTurNBC
!!

Ann Mountz  @JammingWithAnn
6m6 minutes ago
Replying to @KatyTurNBC
A whole $11 an hour and 4 weeks of maternity leave. Really taking a lead there.

Jim Delaney   @JimDelaneyMPLS
8m8 minutes ago
Replying to @KatyTurNBC
Play now, pay later.


Blue Twilight   â€ @Bluetwilightstr
    8m8 minutes ago
Replying to @KatyTurNBC
Come on. They had to do it to compete. Not because of tax law. And they combined with Aetna right, that's what this is about.

michigantom    @A_Clarion_Call
    8m8 minutes ago
Replying to @KatyTurNBC
Another company breaks wind for Trump.

calee123   @calee123
50s50 seconds ago
Replying to @KatyTurNBC
Really  because of the big profits they are going to take with the destruction of Obamacare, and after they lay off workers.

Zach  @ad1220
4m4 minutes ago
Replying to @KatyTurNBC
Looks good on the surface, but a couple caveats.....
1. How much of the $9 to $11 was due to state/local min wages going up?
2. "qualify for as much as 4 weeks..." Need to see the fine print on that, similar to the fine print on HD and WMT giving bonuses "up to $1000"

Mike Dodds      ‏ @MikeDodds1
    5m5 minutes ago
Replying to @KatyTurNBC
In 2016 CVS has net revenues of $177.5 billion and a net profit of $884 million. But they couldn't afford to raise wages or offer paid parental leave until now?

 AmericanBulldog‏ @Uberficker
Replying to @KatyTurNBC
Awesome... Proctor and Gamble is shutting down in KC... Harley Davidson is closing its KC plant as well.. $1.50 just doesn't go so far these days.
#leftylogic


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