SALT Tax Limitations F*cked me!!!

Citibank Qt7l
Feb 2 81 Comments

Just wrapped up my returns and I’m paying an additional $23000 in taxes this year despite having similar income YoY. Anyone else getting hosed?

I even dropped my withholdings to zero and I’m still going to have to write a check for over $10k. FML.

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TOP 81 Comments
  • Dropbox 99+
    Lots of people here are all about social programs and love politicians that talk about 70% tax rates.

    Then, when higher taxes actually come around look like
    Feb 22
    • VMware BobbleHat
      Except in this case all those programs are also cut. This is just funding bigger cuts for people that made much more
      Feb 2
    • Dropbox 99+
      SALT was just a shell game that high tax States were able to exploit. The problem isn't the recent SALT changes, it's that you live in a high tax State.
      Feb 2
  • Amazon / Mgmthq2yomama
    Taxation is theft.
    Feb 223
    • Spotify KXAo87
      Sorry about your disability that prevents you from reading a differing pov without name calling. I hope you grow out of it someday
      Feb 2
    • Spotify KXAo87
      Here's a hint:

      "I believe x because everyone else does and I'm worried they won't like me if I disagree" <- virtue signaling

      "I believe x because of my direct personal experience and am expressing that belief anonymously" <- the literal opposite of virtue signaling
      Feb 2
    • Oath / MgmtAtinlay
      You’re triggered and missed the point because of it. I did not call you names. You tried to with me by identity politics “All the maga chuds....”

      Your virtue signaling is here: “Well seeing as I grew up with garbage parents, and managed to succeed (PhD at an ivy, work at any major tech company I feel like at the time making awesome shit) almost entirely because of the opportunities given to me by public schools, I find your ignorant comments rather worthless.” It’s actually a virtue signaling and a humblebrag combined.
      Feb 2
    • Spotify KXAo87
      Look up what words mean first, then try using them
      Feb 3
    • Oath / MgmtAtinlay
      I know exactly what I’m saying. unlike you
      Feb 3
    • Spotify KXAo87
      No really, please go read the definition of virtue signaling. You don't know what it means
      Feb 3
    • Oath / MgmtAtinlay
      I know exactly what it means. You do not
      Feb 3
    • Spotify KXAo87
      Get back to me after you read the definition. Otherwise it's clear you're miles away from good faith
      Feb 3
    • Oath / MgmtAtinlay
      You started off with a claim that my posts give you cancer and you want to talk about “good faith”?

      You need to look up the meaning of YOUR words.
      Feb 3
    • Intuit b7x1s
      Come on guys in the grand scheme of things the definition of “virtue signaling” isn’t a big thing, ya know? Argue over things worth fighting about.
      Feb 3
  • VMware BobbleHat
    Someone has got to pay for the billionaires tax cut
    Feb 25
    • New biikgd
      You moron that’s not how it works. It’s not a zero sum game
      Feb 2
    • VMware BobbleHat
      Uh, in an annual budget it is actually a zero sum game. Although you seem to be taking this a bit personally so maybe you feel bad that Orange’s promises are all bs.
      Feb 2
    • New biikgd
      I don’t give a shit about orange. I give a shit about how the economy works. Tax breaks don’t equal less income for the government that have to be made up somehow. They create more incentives and jobs indirectly. Tax income from corporations don’t go to the same bucket as tax income from normal citizens like you and I. Take an Econ course at khan academy.
      Feb 2
    • VMware BobbleHat
      How about taking many econ courses at a real university! Sounds like you got a lot of half propaganda facts from somewhere that you can try to apply to the real world. But you still do seem to have taken this personally when it is meant more as a joke.
      Feb 2
    • eBay / IT
      manorama

      eBayIT

      BIO
      Coder
      manoramamore
      @biikg are you trying to emphasize the fact that corporate income taxed lower does not benefit the actual owner as well, since when he gets his cut , he still pays again marginal tax ? if yes I understand what you are saying , that corporate taxes does not give advantage to any person as an individual , even the CEO of the company as they also pay marginal tax again on top of it , once they receive income from their own company
      Feb 2
  • This comment was deleted by original commenter.

    • Dropbox 99+
      Why were high earners able to write off more in the first place?

      Implementing those SALT deductions in the first place screwed everybody else, I look at it more as evening the playing field.
      Feb 2
    • Facebook QGhE38
      Stop saying people who make 200-500k elite. Most of us make that and most of us feel nowhere near elite
      Feb 2
    • Dropbox 99+
      Making up to a half million a year isn't elite, is that the statement you guys are trying to make?
      Feb 2
    • Snapchat BigCoin
      Lol. You two have very flexible definition of “elite”. I’m not sure most ppl making $500k would feel elite in those high cost areas. Maybe “fortunate” is a more accurate word. Elite would more be suited for the VCs. You don’t typically call a senior PM/eng “elite”
      Feb 2
  • Microsoft oskd
    Yea me too. Much higher effective tax rate. Single filers earning more than $200k got hosed regardless of living in higher cost geographies since the federal tax rates aren’t adjusted for cost of living. It was a great way for republicans to screw the people living in the larger, bluer cities.
    Feb 23
    • Amazon djsjsjsj
      not really true for Seattle where no state tax is there. And Seattle is very liberal.
      Feb 2
    • Amazon / Mgmthq2yomama
      People living in large blue cities like bigger government and higher taxes. Why wouldn't they want to pay more?
      Feb 2
    • Microsoft oskd
      It certainly is an increase for someone living in Seattle who is single and earning $415k TC. Look at how much the tax rates increased for those people in high cost areas, combined with the cap on deductions https://www.kdpllp.com/2017-vs-2018-federal-income-tax-brackets/
      Feb 3
  • Oracle OFocal
    Congrats on voting for an Orange
    Feb 20
  • New DuQvV7x
    Loving my red state.

    Tax rate went way down.

    Also, ZERO capital gains taxes. Thanks to Opportunity Zones.

    Who cares if this blew a giant hole in the budget. Only young people get to worry about that shit
    Feb 28
    • Intuit b7x1s
      You must be old then
      Feb 2
    • New DuQvV7x
      Thankfully so.
      Feb 2
    • VMware BobbleHat
      In other words : f* humanity, I’ll eat my cake, my children’s cake and my grandchildren’s cake too
      Feb 2
    • New DuQvV7x
      I didn’t ask for this cake.

      But I’m loving it.

      And no kids. Can’t stand ‘em.
      Feb 2
    • VMware BobbleHat
      Damm it, you are eating my kid’s cake /s
      Feb 2
    • New DuQvV7x
      And it’s quite delicious.

      Moar 🎂, pls ;)
      Feb 2
    • New flippy
      I don't think it will be only young people. I am hearing more and more about a wealth tax. That is how young people will make those who actually benefited pay in future. They will also find ways to raise taxes on retired people, 401k withdrawals, capital gains, etc
      Feb 2
    • New DuQvV7x
      Too speculative.

      Tax law is insanely difficult to change.
      Feb 2
  • VMware BobbleHat
    Now we can start the thread about CA house price plunging once people realize cost of mortgage/property tax effectively doubles now
    Feb 22
    • Dropbox 99+
      Just wait until Newsom repeals prop 13 to pay for all his initiatives.
      Feb 2
    • Intuit b7x1s
      That’s a political non starter. Prop 13 won’t go away. Instead, you’ve seen the rise of Mello Roos property taxes, which are a type of property tax not banned by Prop 13.

      Same shit (aka higher property taxes), just packaged up differently, in a way that’s politically feasible to implement.
      Feb 2
  • LinkedIn Fireing
    California homeowner here and I’m actually saving more than 3k. Tax brackets for married filing jointly were lowered substantially below 350k and that offsets SALT.
    Feb 21
    • Google GodAtGoogl
      Totally agree. I was homeowner and then moved into a smaller rental and rented my house on Airbnb full time. I got double benefit of new tax law because #1 As a business I have no SALT limitation on business expenses plus I get 20% deduction for small business #2 for my job income I benefit from lower brackets and higher deduction. That's why my saving this year between the old and new law is 24k which is crazy good
      Feb 2
  • Google zzzyyxxx
    I guess California homeowners will see a big hit.
    Feb 21
  • Google GodAtGoogl
    Most people living in high tax state areas don't realize that the biggest benefit of the new law is the changes in AMT rules. Please educate yourself on that and you will see what you would end up paying under old rules. In short, whatever low tax amount you get by using SALT deductions was anyways overruled by the minimum taxes you owe under AMT law. So those benefits were never going to you anyways.
    Feb 20
  • Intuit b7x1s
    Don’t buy a house! SALT will get you if live in an area with high property taxes.

    A lot of people weren’t going to realize this until the next tax year. The housing market is going to be interesting this season.
    Feb 28
    • Cisco ChucksDog
      But then this tax disincentivizes ANY high income person from buying a house ever.

      If my state income tax is 12k (which can be fully standard deducted), why the fuck would I add property taxes to this every year?
      Feb 2
    • Intuit b7x1s
      I’m sort okay with this since home prices should fall. I completely agree with your thought process. Why the fuck would you want to pay federal tax on your property taxes?
      Feb 2
    • Salesforce :w!
      Why the fuck your state taxes you so much?

      My state income tax is 0. Why Californians should pay less to the feds just because they chose to live in the high tax state?
      Feb 2
    • Oath / MgmtAtinlay
      They should “donate” more just because of the policies and people they vote for.
      Feb 2
    • Cisco ChucksDog
      Even if you live in a state with no state income tax, why would anyone ever take the 10k itemized deductions? The standard deduction itself is 12k
      Feb 2
    • Intuit b7x1s
      There are other deductions that exist, when used in conjunction with the 10k SALT deduction, bringing you over the 12k standard deduction and lowering your taxes.

      Most people don’t have other deductions to take beyond SALT.
      Feb 2
    • Google rLko50
      If CA lawmakers don't do anything about this the 2009-2012 housing downturn will just be a warm-up. At that time at least there were stable areas with good schools where prices did not go down as much. This time those very people will also sell so the housing bottom will be much lower....get ready for the ride.... this downturn will also impact the low/no tax states.....when economy goes down it impacts the whole country.....the stock market is the same for Texas and California.....so no need to blame the Californian or high tax states....you will go down as well with them...
      Feb 2
    • Intuit b7x1s
      Property owners always get bailed out in California.
      Feb 2
  • Cisco ChucksDog
    So the only people fucked are the ones with property?

    What about people who paid more in state taxes than the 12k standard deduction?
    Feb 22
    • Facebook QGhE38
      At least you don’t suffer more than the property owners... Assuming majority of the property owners here already pay more state tax than 12k
      Feb 2
    • Cisco ChucksDog
      I see, so the real whammy is on property owners, not just folks who paid more than 12k in state income taxes
      Feb 2
  • Google GodAtGoogl
    I thought changes in rates and brackets and the higher standard deduction and pretty much eradication of AMT was going to offset the SALT limitation for most of us. I guess there are winners and losers. I'm saving 23k on my taxes for 2018 because of new law. I'm also in Bay area HCOL.
    Feb 21
    • Google GodAtGoogl
      Did you own a expensive 🏠 for which you can't deduct prop tax and insurance?
      Feb 2
  • Oracle OFocal
    yeah higher taxes for ppl and tax cuts for corporations.
    Feb 20
  • Cisco ChucksDog
    People with state income taxes under 12k will use standard deduction

    People with state income tax over 12k will use standard deduction.

    So who the fuck will use that 10k property and local taxes itemized deduction? I can only think of retirees.
    Feb 21
    • Facebook QGhE38
      It still makes sense to use itemized deduction because you have mortgage interest deduction... Which combined with 10k SALT will be highly likely higher than 12k...
      Feb 3
  • Workday arewethere
    What is the best way to evaluate tax rule changes? Effective tax rate?
    Apr 80
  • Cruise Automation whatisav
    My deduction came down by 50+% compared to previous years and income didn't move.
    Feb 170
  • eBay
    Jkbukan75

    eBay

    PRE
    Walmart
    Jkbukan75more
    Sorry to hear. I’ll be doing my taxes next week and I’m not looking forward to any surprises (I don’t have prop taxes). Btw, assuming your fed rate of 35% and $20k of property tax, am I calculating it right that your fed taxable rate is $450k?
    Feb 20
  • Cerner kerner
    Can’t help you offset your tax burden but there is a way to at least fund and repay the burden you will be paying.
    Feb 20
  • Google rLko50
    23k is a huge difference. What was the W2 income?
    Feb 20

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