Projected 2019 Tax Rates, Brackets, Standard Deductions

[Helena]

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Official IRS 2019 inflation figures are not out yet... but here is an interesting Forbes article

" Projected 2019 Tax Rates, Brackets, Standard Deduction Amounts And More "

https://www.forbes.com/sites/kellyph...unts-and-more/

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[Dtail]

Interesting. What was intriguing to me was specifically the interpretation of having a dependent's taxable income be the same as when there used to be a personal exemption.
i.e. - no effective change in the rules. woohoo!!!

[kgtest]

Quote:

Originally Posted by Dtail Interesting. What was intriguing to me was specifically the interpretation of having a dependent's taxable income be the same as when there used to be a personal exemption. i.e. - no effective change in the rules. woohoo!!!

+1

[kgtest]

For me MFJ, looks like 2% of our raise will remain out of the feds sights.
Looks like that measures up to suggested .2 CPI raise each month (2.4% for next year).

CG $78,750 is a 1.75% increase from last year, so those that live off income aren't getting quite the break of those living off investment LTCG income...
TIRA and ROTH catch-up and contribution limits raise by $500...penalizing older folks with less of an increase...7.7 vs +9.1% for everyone else.


I think that personal exemption being eliminated will surprise the middle class. Especially those with more than 2 kids.
The rich get richer.

[Fedup]

I can’t wait for the new TurboTax for 2019 to come out so I can figure out easily how much to do Roth conversion.

[audreyh1]

Quote:

Originally Posted by kgtest For me MFJ, looks like 2% of our raise will remain out of the feds sights. Looks like that measures up to suggested .2 CPI raise each month (2.4% for next year). CG $78,750 is a 1.75% increase from last year, so those that live off income aren't getting quite the break of those living off investment LTCG income... TIRA and ROTH catch-up and contribution limits raise by $500...penalizing older folks with less of an increase...7.7 vs +9.1% for everyone else. I think that personal exemption being eliminated will surprise the middle class. Especially those with more than 2 kids. The rich get richer.

I guess you're thinking that folks won't figure out real impact of the new tax law until next year when they file their 2018 taxes?

[Helena]

Quote:

Originally Posted by audreyh1 I guess you're thinking that folks won't figure out real impact of the new tax law until next year when they file their 2018 taxes?

Being successful at personal finance necessitates one be well-informed.


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[kgtest]

Quote:

Originally Posted by audreyh1 I guess you're thinking that folks won't figure out real impact of the new tax law until next year when they file their 2018 taxes?

I honestly feel like 3 maybe 4 out of 10 could give a good guess as to the real impact to their taxes.

I also don't think people would care if they all of a sudden found out they were getting less of a return. Most would just shrug off their shoulders without understanding the mechanics.

[Gumby]

Quote:

Originally Posted by audreyh1 I guess you're thinking that folks won't figure out real impact of the new tax law until next year when they file their 2018 taxes?

My guess is that a lot of people enjoyed the "raise" they got in their paycheck when the withholding formula was changed this past February or so. Next April, they will really regret not having adjusted the withholding back up to account for the specific issue kgtest raises.

[corn18]

I made a spreadsheet with the new tax brackets and standard deduction. I don't have anything fancy, so it was easy to figure out my taxes for this year. The data indicate I will pay about 8.4% less with the new tax laws this year.

[Souschef]

I figure it is going to cost me another 3K in taxes just due to a larger RMD

[Release The Hounds]

Maximum IRA contributions go up to $6K/$7K, which is nice. No word on 401k maximums, though.

[jazz4cash]

I don't think more than 3 out of 10 have a clue what's coming and I haven't heard any positive comments about increased paychecks due to reduced withholding. I guess it wasn't enough to really register. Many folks around here will be paying more and it will be compounded by reduced withholding. I haven't heard anymore about the state's plan to not take advantage of increased revenues due to higher taxable income at the Federal level either.....maybe they are hoping no one will notice till it's too late.

Looks like a huge increase for us....I wasn't prepared for that. Hope I'm wrong!

[kgtest]

My tax situation is changing drastically, from MFS to MFJ, from Itemized to Standard 24k, plus almost 3.5% gross income raise from 2017, guessing my 30 grand we paid in taxes last year will be at least 35k for 2018, if not more. I will run my calculator this weekend before Q4 starts and adjust withholding accordingly. I pay attention to my rate vs paid every quarter and adjust as needed.

Not precisely sure how it will even out with a full year of 2 DD without those itemized med and business deductions this year. Should be interesting, hoping for the best, planning for the worst.

[scrabbler1]

At best I will break even; I will probably pay a little more due to the fact that any small savings I get from raising the SD will be more than offset by the loss of the PE. The lower tax rate (12%, down from 15%) on ordinary income doesn't help me because all my income is either in the unchanged 10% bracket or is investment income taxed at 0% or 15%.


Furthermore, the repeal of the ACA"s individual mandate will increase my health insurance premiums more than they would have gone up. Some of that increase will be covered by the ACA subsidy, as long as I don't go over the ACA cliff which I have been very close to most years (until I went over that cliff last year, costing me around $800)

[Fedup]

I’m glad next year 401k and Roth IRA will be raise to $19k and $6k next year. I’m waiting for the relaxing of RMD from the executive order sign this year.
This should improve our tax situation.

[gwraigty]

"Remember, however, that these are just projections. The Internal Revenue Service (IRS) will publish the official tax brackets and other tax numbers for 2019 later this year, likely in October."

[lemming]

I think it is going to create a lot of tax law landlords in NY and NJ. Reciprocal sale of homes within families to take advantage of tax and interest deductions. CA with its property tax relief laws may not work. Also there may be advantages to filing MFS.
There is going to be a credit for non child dependents which I think will make up for the lost personal exemption=that is temporary=only for a few years.

[Helena]

Quote:

Originally Posted by Souschef I figure it is going to cost me another 3K in taxes just due to a larger RMD

Trump's recent EO directs the current RMD be reviewed for possible revision.

http://www.early-retirement.org/foru...age-93571.html

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