(02-11-2020 04:15 PM)VA49er Wrote:  

(02-11-2020 03:48 PM)GrayBeard Wrote:  

(02-11-2020 03:45 PM)Fort Bend Owl Wrote:  

(02-11-2020 03:18 PM)VA49er Wrote:  So, it's been two years since the tax cuts. I found an interesting article that discusses the impacts of the tax cuts from perception/reality and/or winners/losers. Note: this isn't the most conservative source either.

Two years after the Tax Cuts and Jobs Act — who are the winners and the losers?

So that article is saying the tax refund should be more noticeable this year? I'm in the highest tax bracket in that chart and my 2019 refund is about the same as it was in 2018 (and 2017 and 2016, etc., etc., etc.). Still not seeing any change myself.

Why does everyone get wrapped on the "refund". The only thing the refund tells you was if you had the right amount withheld from from your paychecks. You should be looking at your total tax (state & federal) and your effective tax rate.

Yeah, the article points out it's a common fallacy for people to look only at the tax refunds to determine if they benefited or not from the tax cuts. People that got smaller refunds hated the tax cuts even though, due to changes in withholding rates, they actually made more money throughout the year.

I preach this, but I fight the same issue with my wife. I just finished my taxes and we made some huge changes in a lot of things this year...new house, new 2nd home, change in retirement plans, cash outs, new state, full year in new job, etc. and I was within $750 of having my withholdings perfect. Yes I net owed $750ish, but I was stoked for being so close. She on the other hand was pissed that we owed even a little bit.

Oh well.

(02-12-2020 11:01 AM)GrayBeard Wrote:  

(02-11-2020 04:15 PM)VA49er Wrote:  

(02-11-2020 03:48 PM)GrayBeard Wrote:  

(02-11-2020 03:45 PM)Fort Bend Owl Wrote:  

(02-11-2020 03:18 PM)VA49er Wrote:  So, it's been two years since the tax cuts. I found an interesting article that discusses the impacts of the tax cuts from perception/reality and/or winners/losers. Note: this isn't the most conservative source either.

Two years after the Tax Cuts and Jobs Act — who are the winners and the losers?

So that article is saying the tax refund should be more noticeable this year? I'm in the highest tax bracket in that chart and my 2019 refund is about the same as it was in 2018 (and 2017 and 2016, etc., etc., etc.). Still not seeing any change myself.

Why does everyone get wrapped on the "refund". The only thing the refund tells you was if you had the right amount withheld from from your paychecks. You should be looking at your total tax (state & federal) and your effective tax rate.

Yeah, the article points out it's a common fallacy for people to look only at the tax refunds to determine if they benefited or not from the tax cuts. People that got smaller refunds hated the tax cuts even though, due to changes in withholding rates, they actually made more money throughout the year.

I preach this, but I fight the same issue with my wife. I just finished my taxes and we made some huge changes in a lot of things this year...new house, new 2nd home, change in retirement plans, cash outs, new state, full year in new job, etc. and I was within $750 of having my withholdings perfect. Yes I net owed $750ish, but I was stoked for being so close. She on the other hand was pissed that we owed even a little bit.

Oh well.

Actually, the perfect scenario is that you owe money each year that's small enough to not warrant estimates and not subject you to a penalty. Then take as long as possible to pay it.

(02-12-2020 11:24 AM)Redwingtom Wrote:  

(02-12-2020 11:01 AM)GrayBeard Wrote:  

(02-11-2020 04:15 PM)VA49er Wrote:  

(02-11-2020 03:48 PM)GrayBeard Wrote:  

(02-11-2020 03:45 PM)Fort Bend Owl Wrote:  So that article is saying the tax refund should be more noticeable this year? I'm in the highest tax bracket in that chart and my 2019 refund is about the same as it was in 2018 (and 2017 and 2016, etc., etc., etc.). Still not seeing any change myself.

Why does everyone get wrapped on the "refund". The only thing the refund tells you was if you had the right amount withheld from from your paychecks. You should be looking at your total tax (state & federal) and your effective tax rate.

Yeah, the article points out it's a common fallacy for people to look only at the tax refunds to determine if they benefited or not from the tax cuts. People that got smaller refunds hated the tax cuts even though, due to changes in withholding rates, they actually made more money throughout the year.

I preach this, but I fight the same issue with my wife. I just finished my taxes and we made some huge changes in a lot of things this year...new house, new 2nd home, change in retirement plans, cash outs, new state, full year in new job, etc. and I was within $750 of having my withholdings perfect. Yes I net owed $750ish, but I was stoked for being so close. She on the other hand was pissed that we owed even a little bit.

Oh well.

Actually, the perfect scenario is that you owe money each year that's small enough to not warrant estimates and not subject you to a penalty. Then take as long as possible to pay it.

IMO, as long as I'm as close to either side of $0 as I can get I'm good to go. I usually get pretty close.