- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
so that when they lose the two (2) exemptions they are actually worse off than last year. Is this correct?
Solved! Go to Solution.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
"Worse off" isn't necessarily the right conclusion. In many of the cases I've looked at like this, even if the taxable income is higher than the prior year, the overall tax is lower because the rates dropped. You should also consider the state income tax ramifications of choosing standard vs itemized in these borderline cases.
But yes, there are winners and losers of TCJA.
Rick
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Yup.
Slava Ukraini!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Yes. I've had that happen with a single person also.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Had my first losers in on Saturday. MFJ - 2 kids Lost the 16K in exemptions and 4K to SALT Then their withholdings were 1500 less for each of them. Their big $7000 refund they get each year that they use for vacation was only $1500.
I did explain that they already got $3000 of it in their paychecks through the year, they understood, but were still sad.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Most of the ones w/kids get subsidized by the increased CTC but I have a few clients in the "hole" between CTC and AOTC that are getting hit (just as they're trying to figure out how to pay for college this year).