Who Noticed A Tax Break?

Discussion in 'Life After Brown' started by scratch, Mar 23, 2019.

  1. scratch

    scratch Least Best Moderator Staff Member

    I finally filed my taxes last week, it seems that has become a chore that I really hate to do the last few years. I usually work about 45 hours a week, and the last two years my gross income was $93K before I put 20% in my 401K.

    In 2017 I paid $835 into Federal and I got a Georgia State refund of $259, so I was $576 in the hole between them. My county property taxes were $1600 a year for a one acre lot with a 1600 square feet house fifteen miles out in the suburbs. For 2018, I paid $510 Federal, State Refund is $459 (which I got back in five days), and my county taxes are $1100. Between the Feds and State, I owe $51. So I am about where I want to be. One of the advantages I see in moving to Florida in retirement is no state taxes, although the local taxes will be higher.
     
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    Last edited: Mar 23, 2019
  2. What are the rules on retirement income in your state and Florida?
    That's something to check into.
     
  3. oldngray

    oldngray nowhere special

    Cost of living in Florida might eat up any savings from lower taxes.

    I ended up owing this year but that was because I got burned on extra capital gains but without that my taxes probably would have been about the same as last year. Tax breaks didn't make much difference.
     
  4. jeepguy63

    jeepguy63 Member


    What? If you paid $835 in federal taxes you made about $25k for the year. What was your total federal tax on the 1040 in 2018 vs 2017? Tax reform wasn’t about your refund - it was about lowering your total federal taxes paid. State of Ga has nothing to do with it. Ga taxes paid are based on the state policies.
     
  5. scratch

    scratch Least Best Moderator Staff Member

    Local taxes are higher in Florida plus toll roads. They got to make up revenue somehow. I got $2.81 and $.78 in toll fines in the mail from my recent trip to Tampa, the Bay Bridge toll was $1.50. I didn't realize I got on a toll road during rush hour traffic one night.
     
  6. oldngray

    oldngray nowhere special

    What matters is how much of your money ends up in your own pocket. You can get taxed a lot of different ways.
     
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  7. scratch

    scratch Least Best Moderator Staff Member

    My AGI was $87,633 and taxable amount $62,333 in 2017 and my 2018 AGI was $87,328 and taxable amount was $65,278, so amounts were similar. My total 2017 Federal tax due was $8819 and last year that dropped to $7061, a $758 difference. My wife is legally blind and gets about $12,000 a year in SSDI that she doesn't withhold taxes on.
     
    Last edited: Mar 23, 2019
  8. jeepguy63

    jeepguy63 Member

    Math skills - 8819 minus 7061 = 1,758 or 20% less tax paid.
     
  9. scratch

    scratch Least Best Moderator Staff Member

    I am a product of the public school system! Really I was just punching numbers on the calculator too fast. I did make more than your 25K figure though, I’m not a part-time supervisor!
     
  10. zubenelgenubi

    zubenelgenubi Well-Known Member

    I think the confusion is that when @scratch said he paid $835 in federal, that's the extra amount he had to send in when filing his return.
     
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  11. rod

    rod retired and happy

    My wife is real good at estimating what we pay in for quarterly taxes. Normally we either owe about 200 or get back about 200 between the state and the Feds at tax time. Last year she kept our payments the same and our combined incomes were pretty much the same as the year before and somehow we are getting back $500 from the state and $1500 from the Feds. Not complaining. If Donald had anything to do with it ---thanks.
     
  12. old levi's

    old levi's I use to care... but things have changed

    Not to worry, they will send you a bill, LOL

    Still have Tampa on the short list?
     
  13. scratch

    scratch Least Best Moderator Staff Member

    Yeah they did send me a bill over a toll fine. It cost more to process than what they will get back. Tampa area is still on my short list. Anything on the Gulf Coast is possible. Where I'm at is going to Hell, its time to get out of here.
     
  14. scratch

    scratch Least Best Moderator Staff Member

    And this was the point of my thread. I've heard a lot of people complaining about only the rich were seeing a tax cut and I was wondering if everybody is seeing the same thing I am. The new tax laws do seem to be benefitting the middle class too. People who itemize a lot may not come out as well.
     
  15. old levi's

    old levi's I use to care... but things have changed

    Do it brother, you have paid you dues!
     
  16. Indecisi0n

    Indecisi0n Well-Known Member

    Trump :censored2:ed me
     
  17. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    The average refund is now $3 smaller than last year.
     
  18. oldngray

    oldngray nowhere special

    Skip a Big Mac?
     
  19. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    Just saying it’s minimal but everyone should have been bringing home more
     
  20. oldngray

    oldngray nowhere special

    Refund isn't the same as tax paid. You might need to adjust your withholdings.