Tax Reform and You

Wingz · Dec 21, 2017

After discussing the Tax plan in the Politics thread and reading the below post from @AladainAF

Politics Thread

It got me thinking.

My point of this thread is to sort of chart how we in our own lives are affected or will be affected as either employees, entrepreneurs, business owners etc by these tax cuts.

Don't have to go into financial details etc if you don't want too but I thought a discussion about how this affects you individually as we go through the next year or so would be ideal.

An example would be like: I'm a business owner and we hired an extra person. Or I work in a factory and we are expanding / building a new facility somewhere.
Even if it's like: Job market is improved, I did an interview and got a better job or man my refund is larger / smaller than I tought.

Obviously we can point to Comcast, etc offering bonuses and such too but we got a lot of various people here and it will be interesting to see what people post.

May as well start off with myself first. From this plan living in IL, taking the standard deduction, I will see a couple thousand more than I would before. That's how this will affect me.

Tax Calculator : Tax Plan Calculator by Maxim Lott

Oldbased · Dec 21, 2017

First

tyen · Dec 22, 2017

heard some blabbing about doubling child credits...goddamn son.

If you spend more then 1k a year on childcare you can claim +2 for each kid already.

Thats 4 i can claim per kid in total? Doubling the initial adding the childcare credit?

waaaaat?

Heylel · Dec 22, 2017

Married, no kids. Probably a wash because blue state. Not super clear on what, if anything, it will do to RSUs. Likely it just kicks me into higher taxes because it gets treated like income for no damn reason.

yerm · Dec 22, 2017

I really need to step up my game. Tyen has this shit on lock. Marry someone, get foh shitposter to do the whole impregnating if I don't find her attractive, collect massive child credit, save money by shoving kid in a closet, spend difference on Indians caps and eq browsering.

Hoss · Dec 22, 2017

When does the new tax plan go into effect? I'm guessing 2018 taxes, but they could make it apply to 2017.

Downhammer · Dec 22, 2017

2018 taxes. If you're expecting a bigger refund in April you'll have to wait a year but you should see bigger paychecks in Jan as less is withholded.

Khane · Dec 22, 2017

All I know is I'm pretty sure I need to switch from itemizing to taking the standard deduction. I'm in the highest bracket so this will potentially save me a bundle of cash but I think I'm going to actually need to get my taxes done professionally in 2019 to make sure.

Wingz · Dec 22, 2017

Hoss said:
When does the new tax plan go into effect? I'm guessing 2018 taxes, but they could make it apply to 2017.

Once signed the new tax tables will be sent out to business from my understanding in February I believe & start taking less at that point from paychecks. It may be Jan though, but I heard at least Feb.

Hateyou · Dec 22, 2017

yerm said:
I really need to step up my game. Tyen has this shit on lock. Marry someone, get foh shitposter to do the whole impregnating if I don't find her attractive, collect massive child credit, save money by shoving kid in a closet, spend difference on Indians caps and eq browsering.

You forgot the first step before getting married. 1. Have no conscience, self pride, or morals.

Hoss · Dec 22, 2017

according to that calculator I'm theoretically saving 5 grand. But I suppose most of that will be in the form of higher take-home not a return that's 5k higher next year.

Whidon · Dec 22, 2017

I was actually hoping for some help with this.

I'm a bit confused about the new pass-through rules. If I have a sole proprietorship that earns say 300k a year how will my taxes be effected (Just in general)?

A5150Ylee · Dec 22, 2017

Pro tip: when your paycheck gets bigger from the new tax rate, increase your 401k withholding so the difference all goes in the market. Live on what you have been, and grow your retirement.

rad · Dec 22, 2017

A5150Ylee said:
Pro tip: when your paycheck gets bigger from the new tax rate, increase your 401k withholding so the difference all goes in the market. Live on what you have been, and grow your retirement.

Fuck that, PABST and HOTDOGS.

Dodsengel · Dec 22, 2017

Married filing jointly w/ no kids taking the standard deduction would save me ~$5,600 based on that calculator. Apparently bonuses will be proportionately increased based on the new corporate tax rate as well but we'll see how all that shakes out. One thing about these companies coming out and saying they're giving people bonuses and raises because of the new taxes is it's made employees ask if that'll be happening to them as well.

Vaclav · Dec 22, 2017

I've still got to see for sure what deductions are getting axed which involves far more than a simple calculator can figure out unfortunately. I've been able to deduct about half my income before (I'm 1099, not W2) - so if I fall into standard deduction range I'll probably be losing multiple thousands. But assuming my deductions stay as is, I'll be gaining a few thousand.

And regardless as 1099, I won't see any movement from it until approx April 2019 for sure.

As for when your payroll should see it, I've been told to expect to have new filing info sent off to the payroll folks for us by the end of Feb. Not sure how long for payroll to finish it up, and this employer seems faster for logistics like that than my previous ones. So unless we're running slow, I'd expect April to start seeing it live personally.

a_skeleton_03 · Dec 22, 2017

Vaclav said:
And regardless as 1099, I won't see any movement from it until approx April 2019 for sure.

You need to look into turning that 1099 into an LLC passthrough for real.

Hateyou · Dec 22, 2017

Dodsengel said:
Married filing jointly w/ no kids taking the standard deduction would save me ~$5,600 based on that calculator. Apparently bonuses will be proportionately increased based on the new corporate tax rate as well but we'll see how all that shakes out. One thing about these companies coming out and saying they're giving people bonuses and raises because of the new taxes is it's made employees ask if that'll be happening to them as well.

What? Who else would companies be giving bonuses and raises to besides their employees? Are they saying they are giving bonuses and raises to random people on the street or something?

Sledge · Dec 22, 2017

I have a small business that's been around for about 7 years. This past year has been great and we need to build or buy a much bigger place.

I gave out normal bonuses 3 weeks ago but after reading about the new tax changes coming, feeling good about the business, (and following along in the politics thread) I gave everyone an additional $500 check today with their normal Friday paycheck. One of the employees that got back later in the day thought the extra check was a mistake and went to hand it back. I told her it was an additional bonus for a great year.

I haven't actually had time to see what, if anything, the tax changes will do for my S-Corp yet. But I'm very optimistic about 2018 either way.

lurkingdirk · Dec 22, 2017

I'm going to make out pretty well with this tax plan. A friend of mine with a small business (6 employees) will have his tax rate change from 27% to 38%. That sucks badly. If this prediction is right, he will almost certainly have to let someone go.

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