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Yes, I live in whiney NJ..... Anonymous2000 Send a noteboard - 03/02/2018 02:19:25 PM

Where residents have trouble with basic math!

Based on redoing my 2016 taxes.

Our SALT taxes are $28k'ish, so now they are capped at $10k, we lose quite a bit of them.

Overall, we lose a total of $26.5k in deductions and personal exemptions. Which means, we have to pay federal taxes on $26.5k of more income. Sounds bad, right?

Nope! Even with the loss of these deductions, our initial federal tax bill is $1k less with the new plan. This is because the tax brackets are so much lower. Yes, we pay taxes on more income, but at a much lower rate. Many people freaking out in NJ didn't realize this benefit and only focused on the loss of deductions.

So, we are net +$1k

We also get crushed by the AMT! A crazy amount of folks in NJ get hit with the AMT, which essentially negates many of your deductions anyway (i.e., my SALT deductions). The AMT starting point was raised to $1m, so now we also save $5k with this being killed for us.

And finally, we are now eligible for the child tax credit, raised to $2k and income limit increased to $400-500k. So another +2k.

All in all = +1, +5, and +2 add up to our $8k tax cut under the new plan.

This message last edited by Anonymous2000 on 03/02/2018 at 02:59:55 PM
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My paycheck had an additional $150 in it yesterday... damookster - 02/02/2018 03:26:56 PM 702 Views
LOL The Shrike - 02/02/2018 03:35:47 PM 512 Views
yes. damookster - 02/02/2018 03:46:44 PM 474 Views
But but but The Shrike - 02/02/2018 03:54:07 PM 499 Views
one would hope that everyone looking at their paychecks this week would notice damookster - 02/02/2018 03:58:25 PM 514 Views
Who knows how this will be spun? The Shrike - 02/02/2018 04:07:42 PM 426 Views
This month, the public is learning..... Anonymous2000 - 02/02/2018 09:17:08 PM 480 Views
To be fair The Shrike - 03/02/2018 03:11:23 PM 461 Views
I also got a significant bump in my take-home. aerocontrols - 02/02/2018 03:41:48 PM 515 Views
automobiles exist to keep us humble damookster - 02/02/2018 04:00:40 PM 544 Views
#metoo(financial) Anonymous2000 - 02/02/2018 09:16:07 PM 556 Views
Out of curiosity... Legolas - 02/02/2018 09:38:23 PM 484 Views
Media people should not be talking about policy. They are often not good with numbers... Roland00 - 02/02/2018 10:02:24 PM 451 Views
Yes, I live in whiney NJ..... Anonymous2000 - 03/02/2018 02:19:25 PM 455 Views
#Hedidthemath The Shrike - 05/02/2018 01:04:16 PM 466 Views
Interesting, thanks for the detailed answer. *NM* Legolas - 05/02/2018 06:02:18 PM 293 Views
Plus how many companies have announced bonuses based on the corporate tax cuts? damookster - 03/02/2018 04:24:28 AM 458 Views
AT&T is more complicated than that. Roland00 - 03/02/2018 04:45:40 AM 620 Views
Here is some more twitter for you Mookie Roland00 - 02/02/2018 09:46:45 PM 559 Views
There was a great line in the new show The Alienist the other night damookster - 02/02/2018 11:30:19 PM 437 Views
Yeah I am familiar with that quote, John Kenneth Galbraith SUPPOSEDLY Roland00 - 02/02/2018 11:56:11 PM 524 Views
I give it a 9 damookster - 03/02/2018 04:21:48 AM 489 Views
Okay I will try to make time to view it then *NM* Roland00 - 03/02/2018 04:46:48 AM 265 Views
Then as long as your state income tax is <$1800 you are golden, for the next two years Joel - 04/02/2018 07:52:29 AM 894 Views
A year is plenty of time to figure out other ways to reduce my tax liability if need be... damookster - 04/02/2018 10:57:32 PM 495 Views
Actually, The Shrike - 05/02/2018 01:14:56 PM 537 Views
mine is still the same random thoughts - 05/02/2018 06:13:29 PM 464 Views
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