New Senate Tax Plan

[Adam]

Wait don’t you have to be poor to get the child credit?

[wopphil]

Not any longer. The phase out threshold is going to move from $110,000 to $400,000, and the credit is going to double to $2,000 a kid.

[Adam]

Oh nice 

[Adam]

So not sure how credits work. Does that mean I get to write off $4K additional from my income? Or do I get additional $4K refunded?

[RallyMo]

15 minutes ago, Adam said:

So not sure how credits work. Does that mean I get to write off $4K additional from my income? Or do I get additional $4K refunded?

Damn, the net neutrality repeal is working fast. They took away Adam's Google access.

It's the latter, it reduces your liability by that amount.

[Adam]

#MAGA

[nate]

5 hours ago, Adam said:

So not sure how credits work. Does that mean I get to write off $4K additional from my income? Or do I get additional $4K refunded?

Only $1400 is refundable (per child), the other $600 just reduces your tax liability if you owe.

What this bill really does is make it so itemizing is not really something 99% of people will do anymore, which is good with me.

The other thing is it benefits people in the $225k-$550k joint file bracket the most, which is also awesome.

They took out the grad student tax which is also good.

Overall good stuff except is it isn't balanced, they are not doing enough to close loopholes and lowering the top bracket too much which will likely end up in an additional $1.5 trillion in debt over the next 10 years.  During strong economic times should be the time to pay off debt, not add to it.

[wopphil]

5 hours ago, Adam said:

So not sure how credits work. Does that mean I get to write off $4K additional from my income? Or do I get additional $4K refunded?

It's dollar for dollar for credit. So if your total tax liability is $20,000 and you have two kids, you will get $4,000 taken off what you owe.

[Adam]

But if my refund is $1200 based on what Nate is saying I’d get an additional $2800 because I have two kids?

[Vegas Halo Fan]

5 hours ago, Adam said:

So not sure how credits work. Does that mean I get to write off $4K additional from my income? Or do I get additional $4K refunded?

A credit directly offsets your tax bill. A deduction reduces your taxable income. It reduces your overall taxes, but not dollar-for-dollar like a credit does.

[Adam]

Maybe I won’t have to write off 15K biz miles now

[Glen]

Anyone here fit this very specific profile, or know anybody who does?

 

[Spirit]

Has anybody figured out how much they're going to be saving/getting back with this new plan?
 

 

[nate]

50 minutes ago, Geoff said:

Has anybody figured out how much they're going to be saving/getting back with this new plan?
 

 

9% after tax income.

Edit: according to this it is more like 6%.  http://www.cnn.com/2017/12/13/politics/calculate-americans-taxes-senate-reform-bill/index.html

Edited December 20, 2017 by nate

[nate]

BTW, as expected, CEOs don't plan on investing the tax savings in the company but rather just pass it on to investors.  My hope though is it brings more foreign companies here and leaves the US competitive where it wasn't before.  http://money.cnn.com/2017/12/19/investing/tax-plan-jobs-trump-ceo-yale-survey/index.html

The other thing is this bill actually encourages outsourcing which sucks.  Also it gives a huge tax break to Trump by lowering taxes on real estate holdings.

[red321]

I'll enjoy my 2% for a few years until the middle class tax cuts expire...thanks #taxscam!

 

[Jason]

Are bribes still illegal?

[red321]

4 minutes ago, Jason said:

Are bribes still illegal?

she should have been more subtle like they were with corker and the corkerkickback

[Spirit]

1 hour ago, nate said:

9% after tax income.

Edit: according to this it is more like 6%.  http://www.cnn.com/2017/12/13/politics/calculate-americans-taxes-senate-reform-bill/index.html

 

6%-9% is pretty good!  Thanks for the link.  I'll figure mine out.

 

 

[nate]

10 minutes ago, Jason said:

Are bribes still illegal?

Sure.  They are called super pacs

[Spirit]

11 minutes ago, Jason said:

Are bribes still illegal?

 

Since she doesn't have to pay them, now she has $4 million dollars she can give to poor.  Good for her.

 

 

[Adam]

2 hours ago, Geoff said:

Has anybody figured out how much they're going to be saving/getting back with this new plan?
 

 

per some calculator kurt eaichenfag posted I'm saving about $3K

[red321]

Just now, Adam said:

per some calculator kurt eaichenfag posted I'm saving about $3K

for how long? 

[Adam]

I dunno.

The best part for me is the corporate tax dealio. I have equity in my company and I can take more salary once this kicks in. 

[Adam]

...assuming my boss doesn't self-destruct before then