topic Re: zuiwall in Get your taxes done using TurboTax

Very Large increase in 2018 Taxes

DtaxPayer — Mon, 28 Jan 2019 03:43:39 GMT

Is anyone else noticed a huge increase in their taxes for 2018? I have been getting substantial tax refunds for the last 30 plus years, consistently. Last year was no exception. So in 2018 I increased my 401K contributions by 10% and I got a 2% pay increase as well with no change in filing status. One would think I would have done better this year and got at least an equal tax refund to last year's. But behold I started working my 2018 taxes in Turbo tax this week and I see a 20K increase in my taxable income. This change is the most monstrous change I have ever seen. Is this a result of the new tax laws? This increase has resulted in me actually have to pay taxes this year. So I went from getting a 3K plus refund last year to this. So again I ask again, is anyone else seeing this much change or is Turbo Tax just wrong?

Re: Very Large increase in 2018 Taxes

NCperson — Mon, 28 Jan 2019 04:23:00 GMT

did you review the two year co pare to assess what is driving the changes? Suggest beginning there

Re: Very Large increase in 2018 Taxes

zuiwall — Mon, 28 Jan 2019 05:47:31 GMT

Depending on your circumstances the tax changes may have affected your refund. As suggested, do compare your prior year return to this years. Exemptions are the biggest area that individuals will feel the change. Truck drivers working for a single company will also notice a difference.

Re: Very Large increase in 2018 Taxes

jiminy71 — Mon, 28 Jan 2019 21:16:51 GMT

I did a preliminary pass on my 2018 taxes this weekend using TurboTax and found the exact same thing. My taxes went up by approx. 300%! Very little has changed with my income the past 2 years. Last year I got a COLA raise and that's about it, so certainly my taxes should not have jumped so considerably. Nor did I change my withholding. It appears that with the tax "cuts" that were enacted last year, since I did not change my withholding, those cuts were not cuts at all but LOANS using fuzzy math! Very disappointing and I will be voting accordingly.

Re: Very Large increase in 2018 Taxes

zuiwall — Mon, 28 Jan 2019 22:55:58 GMT

How many people did you claim last year?

Re: Very Large increase in 2018 Taxes

jiminy71 — Mon, 28 Jan 2019 23:29:34 GMT

Last year I claimed 3 (3 people in household), same as I have every other year going back as far as I can remember.... the only thing that changed from 2017 to 2018 for me is a 2.7% raise and these goofy tax law changes!!

zuiwall

zuiwall — Tue, 29 Jan 2019 06:28:21 GMT

Filing status?

Re: Very Large increase in 2018 Taxes

jmengel12005 — Tue, 29 Jan 2019 17:15:56 GMT

Yes, i'm seeing the same thing. I own a house and I am married we both take 1 deduction (claiming ourselves) . We both received raises this year but nothing major. We both contributed a signification amount to our 401K and/or 403B. We went from receiving a $3K plus refund last year to owing just under $3K this year. This tax reform is actually screwing me and I'm sure the rest of the middle class. Should I go back to claiming zero and go back to claiming single instead of married? This is just crazy to me. I thought this tax reform was supposed to help the middle class not hurt us. I won't be filing my tax return until the April 15th deadline because now I have to come up with uncle sam's money.

Re: Very Large increase in 2018 Taxes

NCperson — Tue, 29 Jan 2019 17:44:40 GMT

two alternatives to playing with the exemptions on your paycheck:

1) leave the exemptions / married as is and request additional withholdings of $3000 / the number of paycheck in a year (it's on the W-4 form)

2) use the coupons in turbo tax to send Uncle Sam a check for $750 on each of the 4 due dates over the course of the next year.

out of curiosity, are you in CA or the Northeast where the 'SALT' (state and local taxes) limit of $10,000 were expected to have the biggest impact?

Re: Very Large increase in 2018 Taxes

jmengel12005 — Tue, 29 Jan 2019 17:53:53 GMT

Thanks for the guidance!

I'm in Virginia where are taxes are high but not that high. Otherwise, my bill would most certainly be a lot worse.

Re: Very Large increase in 2018 Taxes

anhenry546 — Tue, 29 Jan 2019 18:38:57 GMT

I think it's supposed to help the lower class and it has. I know many people getting thousands more than last year.

zuiwall

zuiwall — Tue, 29 Jan 2019 19:24:35 GMT

Since I don't know what your filing status is (single, married filing joint or head of house) I can't help you too much. I would suggest that you print out your return and take it to H&R Block for a free second look. These are FREE. They will let you know if everything was done correctly or not. If there is an error you can have them fix it fix it yourself. I think TurboTax provides a similar service but I don't know much about their service.

Re: Very Large increase in 2018 Taxes

zuiwall — Tue, 29 Jan 2019 19:38:39 GMT

I sent a previous reply but didn't see it posted. I believe TurboTax has a review, you can request one of their pros to review it for you. H&R Block also has a free second look and can review it if you take it to them.
As a tax preparer I have seen that most people are coming out the same as last year or a little better. However, if you claimed too many withholdings on you W4 then you will owe. I would suggest changing that to married 0 or single 0 and maybe have them withhold an extra $100 per paycheck.

Re: Very Large increase in 2018 Taxes

jiminy71 — Tue, 29 Jan 2019 19:59:45 GMT

I understand, however, from my specific point of view, I am seeing an increase in my taxes without changing my withholding, from 2017 to 2018. That is the bottom line. The only thing changed was a 2.7% salary increase, which should not generate a 300% increase in tax owed. I attribute this all to the tax "cuts, change in law that apparently, my particular situation is referred to as "the few who will pay more". I just did not expect that much more. Cutting my withholdings to zero or more deductions will help in that I won't have to pay a lump sum in April, but it still negates approximately 2 years' worth of salary increases by it now going into paying taxes....

Re: Very Large increase in 2018 Taxes

anhenry546 — Tue, 29 Jan 2019 20:52:44 GMT

Have you had an accountant look at it? That seems like a bit much in any situation. It may cost a little to have a CPA look at it but hey it might save you in the long run.

Re: Very Large increase in 2018 Taxes

DtaxPayer — Tue, 29 Jan 2019 22:16:02 GMT

The biggest change I see is an increase of 20K in my taxable income because 1. I no longer qualify to itemize and 2. I cannot itemize because they did away with personal exemptions so I fall just short of the Standard deduction of 24k when filing as married filing joint.

Re: Very Large increase in 2018 Taxes

DtaxPayer — Tue, 29 Jan 2019 22:23:47 GMT

I was able to claim one child last year but this year that child turned 17 (interesting I can't claim her even though she was 16 yrs old most of the year). So no more claiming her. So that is another slight change causing an increase but not that much. I ran a W4 estimate and there was not that much difference between 2 and 3 exemptions.

Re: Very Large increase in 2018 Taxes

anhenry546 — Tue, 29 Jan 2019 22:26:00 GMT

I know they did away with the itemized deductions but in turn they also made the standard deductions much higher. That's odd that it doesn't offset it. It sounds like your taxes are far more complicated than mine. I do mine and my husbands but his is just a simple w2 with his yearly salary, it's pretty easy thank goodness. I did have a few set backs this year. Last year we qualified for the exemption for my husband not having health insurance but because he makes more money this year we didn't qualify I guess and had to pay $700 for the penalty. I'm so glad that's one thing they have changed that helps just about everyone.

Re: Very Large increase in 2018 Taxes

anhenry546 — Tue, 29 Jan 2019 22:27:09 GMT

Just because she turned 17! Does the government realize 17 year olds still live at home ?! That's Ludacris!

Re: Very Large increase in 2018 Taxes

anhenry546 — Tue, 29 Jan 2019 22:28:06 GMT

And seriously that is just absurd! My son was born in September and I was able to claim him for the whole year but a 16 year old that just turned 17 you can't claim!?