just filed my 2018 tax returns and realized that my itemized deductible went down by a MASSIVE amount due to non deduction of property tax and $10K limit on state tax deduction. i am not a tax optimizer and you could say i may have been sleeping under a rock but any legal ways to correct for this massive tax hit? and why do people refer to trump taxes as a tax cut? i don't see a cut.
Businesses tax rate was cut in half...make the appropriate changes and profit. If you are itemizing as an individual you are going to pay more.
Why are you just now filing for 2018? That’s the question. This has nothing to do with Trump, it’s becuase you live in a high tax blue state and can’t deduct it anymore
Not for u to ask
Sure it is
Tax cut is only for trumps rich friends. You’re not rich enough sorry
Xactly
Did you pay AMT before like most techies? If so, your property tax and sales tax deduction was $0.
Drop in AMT not as severe as drop in itemized deductions
Your itemized deductions under AMT pre-2017 were zero.
He sure grabbed us by - you know what.
No
I just did my 2018 taxes. Family earned 2.6% less than 2017. fed taxes were 16% lower. We pay property taxes and pay interest (no rentals). No cap gains. Zero amt. standard deduction. Ca resident I thought tax cut was going to be neutral for me. As it turns out, lowered marginal tax rate also lowered my actual taxes
Blame your state for state taxes, we don’t pay it in Washington and our taxes went down.
This. The fact that State taxes were paid out before Federal taxes was effectively a federal subsidy on States that taxed income. The bug has been fixed.
Not been in the US and could never understand it - why should you be able to deduct state tax from federal tax? All that this mean is that the low tax states subsidize the high tax state. If california and New York want to be progressive and help everyone - that's perfectly fine, go ahead. Why should people in Texas need to have a part in that? Wasnt that the whole point of having separate states that can determine their own way (I'm seriously asking here...)
To simplify quite a bit. Your federal tax is on your income. Income = earnings - state tax.
You have it backwards, the high tax states were providing their own services and are now subsidizing the low tax states that were dependent upon federal funding to provide what their state couldn’t afford. Those low tax states are also net takers, receiving more federal money than they contribute. This just means California and New York will subsidize the moocher states even more.
Well. Ask the trumpeters. They will figure out a way to circle the square. Edit: There you have it OP! They have found a way to square the circle.
🤣🤣🤣
If you paid AMT before (most techies did), you got $0 deduction for sales or property tax. Now you get $10K. It’s a net tax cut.