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Old 11-14-2017, 12:53 PM   #21
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The Senate version preserves the medical expense deduction. This does not impact many people, but for a few it is huge.

You still have to get above 10% AGI and expenses have to exceed the new bigger (combined) standard deduction for it to reduce taxes. So the bar is pretty high.
Getting rid of the med expense deduction only worsens the unequal treatment of HI premiums between those in group plans through their employers versus individual plans. Those in group plans, even if they don't itemize, are always able to deduct 100% of their share of the total premiums via payroll deduction, an above-the-line deduction. Those of us in individual plans can deduct only the portion of their premiums which exceed 10% of AGI. This means most of my HI premiums are paid using after-tax dollars even if I am able to itemize.
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Old 11-14-2017, 01:57 PM   #22
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Our household will be temporarily better off with the House bill due to the $300 credits for my dependent DS who is in college but doesn't get the Child Tax Credit. Also, the house bill has $300 credits for TP and spouse. These go away after 5 years I think. House bill hurts a little by not having a 10% bracket, but helps because the 12% bracket goes up to $90K which will allow higher Roth conversions for us. I've calculated we're about $700 better off from the House bill vs the Senate bill. Both would give us decent tax reductions.

When asked if every middle class household would see a tax break, one congressman stated every family of 4 that makes 55K will pay zero taxes. That's probably right assuming the child tax credit and the $300 credit for both taxpayers. Of course it didn't answer the question, either.

I've done some calculating to see where we'll end up because that's just the way I am. I agree with others that it's probably not worth the brain cells to do these figures until the final bill is passed (if ever).
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Old 11-14-2017, 02:28 PM   #23
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Without getting to the porky threshold, I opine that there is <50% chance any bill gets passed. So to me, not worth my time calculating.
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Old 11-14-2017, 03:23 PM   #24
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Without getting to the porky threshold, I opine that there is <50% chance any bill gets passed.
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Old 11-14-2017, 04:23 PM   #25
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The Senate version preserves the medical expense deduction. This does not impact many people, but for a few it is huge.

You still have to get above 10% AGI and expenses have to exceed the new bigger (combined) standard deduction for it to reduce taxes. So the bar is pretty high.
Even getting the medical deduction back, SALT, and mortgage interest deduction gets me to just under 24k. I get knocked out of the box without the 2 exemptions worth an additional 8k.
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Old 11-14-2017, 04:33 PM   #26
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IIRC keeping the medical deduction as the Senate version does is projected to add $1 trillion something to the debt over 10 years. I gather that means the Senate version does not increase taxes, or reduce deductions, elsewhere to make up the difference.
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Old 11-14-2017, 05:36 PM   #27
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I hope nothing passes. I see no benefit for America in either plan as it exists today and the tweaks will probably make them even worse.
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Old 11-14-2017, 05:41 PM   #28
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Uh oh....
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File Type: jpg Porky on the way.jpg (191.8 KB, 33 views)
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Old 11-14-2017, 06:27 PM   #29
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i hope nothing passes. I see no benefit for america in either plan as it exists today and the tweaks will probably make them even worse.
+10,000,000
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House version or Senate version
Old 11-14-2017, 07:40 PM   #30
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House version or Senate version

Did a rough estimate using our 2016 tax filing knowing our income will be the same. We come out ahead with the House bill. Havenít looked at the senate version yet.
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Old 11-14-2017, 08:43 PM   #31
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Of the two, prefer House, although I would pay more taxes under House.
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Old 11-14-2017, 10:04 PM   #32
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I have no idea what the final law will be. My objective for the rest of the year is to figure out or at least make an educated bet what expenses should be paid this year for the tax deductions that may or may not be in place next year. I will probably pay the second installment of the property tax and the remaining estimated state income tax in December.
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Old 11-14-2017, 11:04 PM   #33
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I hope nothing passes. I see no benefit for America in either plan as it exists today and the tweaks will probably make them even worse.
Definitely agree. In a 3-page letter I sent to my member of congress and two senators last month, I outlined 13 items I want to see in tax reform including some items I asked not to see changed. Of those 13, only 2 of them have been followed in the two tax reform proposals. That's a pretty poor rate. Doing nothing would avoid the 11 bad things I spelled out while not following 1 of them, with the 13th being neutral.
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Old 11-15-2017, 09:11 AM   #34
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Thanks for the interesting discussion.

After discussion the moderator team has decided that there should be no more threads on tax bills until something has passed both chambers and is in reconciliation.

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