Lots Of People Are Really Unhappy With Their Tax Refunds This Year

Nov 2018
1,909
798
Montana
#12
Tax refunds are return of pre-paid estimated taxes or paycheck deductions. It is not a desirable event and reflects poor planning with excessive payment to the government before and beyond what is due. However, 2018 is troublesome because the new tax laws have not been tested well and tax advisers may be uncertain (mine are) about the impact or best strategy.

My guess would be that people will find that their state and personal residence property tax burdens will be very influential due to the cap on the deductiblity of these. So if you live unmarried in a personal residence with a large mortgage in a state with high state income taxes, you will find that your benefit from them has changed and you owe more taxes than you would have previously unless you have a complex wealth management strategy in place.
 
Dec 2013
31,545
18,840
Beware of watermelons
#13
From what I have heard around my office, anyone who owns a home is screwed. One of my coworkers just got hit with $13,000 owed. He's freaking out. He's not rich either. He and his wife had no differing circumstances this year, and last year they got a refund. We've all been trying to help him figure it out to the point he has shared all his finances with us. That's pretty serious. So far, we can't figure out why he owes this astronomical amount of money and he's scared. He's an extreme case, but everyone I know so far who owns a home is getting seriously screwed.

We're not talking about a person who even earns 6 figures here, just for perspective. He's a middle class guy.

Those are mostlikely state and local taxes.
 
Nov 2012
5,750
3,481
Kekistan
#14
From what I have heard around my office, anyone who owns a home is screwed. One of my coworkers just got hit with $13,000 owed. He's freaking out. He's not rich either. He and his wife had no differing circumstances this year, and last year they got a refund. We've all been trying to help him figure it out to the point he has shared all his finances with us. That's pretty serious. So far, we can't figure out why he owes this astronomical amount of money and he's scared. He's an extreme case, but everyone I know so far who owns a home is getting seriously screwed.

We're not talking about a person who even earns 6 figures here, just for perspective. He's a middle class guy.
He is not rich, he is a middle class guy paying the state over a thousand dollars a month to live in his own home. Somehow in your mind that is Trumps fault and not the States. Interesting to say the least. You see the reason is because the fed is no longer going to allow income tax to subsidize state property tax.
 
Likes: Sabcat
Nov 2012
5,750
3,481
Kekistan
#15
From the op
My tax refund was way smaller than last year. The withholding changes wiped out 95% of my baseline refund. The much touted doubling of the standard deduction was worth about as much as the mice my cat leaves on the carpet. (though with my cat I can at least appreciate the love he brings along with, and he gives me snuggles and purrs). If it wasn’t for the child tax credit being refundable, I wouldn’t have gotten squat.
This is an example of ignorance. Keep snugging with your cat, because the only two things you understand about a tax refund is jack and shit.
The op is bitching because they was not allowed to loan the fed more money, interest free. You do realize that a large tax refund means you loaned the fed, your money, interest free.
 
Likes: Sabcat
Dec 2013
31,545
18,840
Beware of watermelons
#16
He is not rich, he is a middle class guy paying the state over a thousand dollars a month to live in his own home. Somehow in your mind that is Trumps fault and not the States. Interesting to say the least. You see the reason is because the fed is no longer going to allow income tax to subsidize state property tax.
Stop using math and logic.

Orange man bad.
 
May 2018
4,062
2,496
Chicago
#17
He is not rich, he is a middle class guy paying the state over a thousand dollars a month to live in his own home. Somehow in your mind that is Trumps fault and not the States. Interesting to say the least. You see the reason is because the fed is no longer going to allow income tax to subsidize state property tax.
Who changed the tax code again? Remind me. Who said everyone is getting a tax cut? Remind me. What state sends more money to the fed than it takes, thus subsidizing red states? Remind me.

You red hats better watch it, because people are only going to put up with this shit for so long.
 
Jun 2018
3,842
957
South Dakota
#18
From what I have heard around my office, anyone who owns a home is screwed. One of my coworkers just got hit with $13,000 owed. He's freaking out. He's not rich either. He and his wife had no differing circumstances this year, and last year they got a refund. We've all been trying to help him figure it out to the point he has shared all his finances with us. That's pretty serious. So far, we can't figure out why he owes this astronomical amount of money and he's scared. He's an extreme case, but everyone I know so far who owns a home is getting seriously screwed.

We're not talking about a person who even earns 6 figures here, just for perspective. He's a middle class guy.
We were told when the tax package was passed what the mortgage interest would change to in 2018. Our house is paid off so it didn't affect us. As a result we lowered the withholding payment and will get a refund about the same with less withheld. The change gave us a bit more of an advantage It's hard to tell what the difference is but I'm happy with it. What everyone is missing is the you can only get refunds to the extent that you pay in.
Your friend probably didn't study up on the changes and got a big surprise. Was the home ownership interest deduction for more than one property? If he used an accountant to do his taxes he should know what happened. I think there is a number to call to get information and explanations for this.
 
Nov 2012
5,750
3,481
Kekistan
#19
Who changed the tax code again? Remind me. Who said everyone is getting a tax cut? Remind me. What state sends more money to the fed than it takes, thus subsidizing red states? Remind me.

You red hats better watch it, because people are only going to put up with this shit for so long.
Sounds to me like the lefttarded high property tax states had best watch it. Lets look out how they are doing.
New York state’s income tax take is dropping rapidly, but its leaders don’t seem interested in truly facing the implications.

Projected income tax revenues for the year just dropped $2.3 billion, Gov. Andrew Cuomo and Comptroller Tom DiNapoli announced Monday — and that’s after falling $500 million in December.

Cuomo partly gets what’s going on: “‘Tax the rich! Tax the rich! Tax the rich!’ We did. Now, God forbid, the rich leave,” he said. He noted that the top 1 percent of New York earners provide 46 percent of the state’s personal income tax revenues, and cited anecdotal evidence that wealthy locals are heading for lower-tax states.

The gov blames President Trump and the new tax law’s $10,000 cap on state and local tax deduction. But the exodus started long before the SALT cap: For years, the Empire Center’s E.J. McMahon has cited census data showing New Yorkers fleeing to Florida, Arizona and other low-tax states.
https://nypost.com/2019/02/04/new-york-has-a-giant-tax-problem-its-leaders-dont-want-to-face/

Californians fed up with housing costs and taxes are fleeing state in big numbers

Illinois exodus: Flight of the expats

Of course in your world its never the leftards fault. Its always someone else fault. Those states chose to tax tax baby. Now they are reaping their reward. I think its great. My bet is on Illinois being the first state to go bankrupt. I am going to laugh my ass off when it happens