Very Large increase in 2018 Taxes

[DtaxPayer]

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. 

[DtaxPayer]

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.

[anhenry546]

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.

[anhenry546]

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

[anhenry546]

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!?

[DtaxPayer]

Sorry you are getting caught up in this too.  Thanks for the input.  I have called my congressman's office pitched my two cents on the tax reform.  I am not going to give another nickel to the government. Because I am over 50 and have the option to increase my 401k contributions significantly to avoid this nonsense as well as add to HSA contributions.  So if I must save to avoid more taxes then saving I will do.  Maybe that was part of Trump's plan. Don't spend more, save more.  Probably not a bad idea anyway.  Still annoyed though.

[NCperson]

LIST THE CHILD AS A DEPENDENT! 

There is another tax credit of $500 for children over 16 (as long as they meet the other requirements).  Turbo Tax will ask you all the questions required.

Also, not to be 'persnickety',  but that child born in September.....you were able to claim them for the whole year 17 years ago, even though they were only in  your household for a few months . 🙂 

[DtaxPayer]

To heck with writing uncle Sam a check.  Add more money to retirement and wherever they allow to avoid the taxes.

[DtaxPayer]

Married filing joint

[DtaxPayer]

I agree.  Not all bad Robin hood Trump but I still do not like it.

[DtaxPayer]

I will indeed consider a review.  I will wait for the IRS to finish all their updates on the forms so I don't get so many errors on the final review in my Turbo Tax

[DtaxPayer]

Does sound absurd but that is the way Turbo Tax did it.  I may go back and read the IRS publication on this point.  Thanks.

[zuiwall]

You can still claim your daughter if she is a student, doesn't work or makes less than $4000 a year. However, she no longer qualifies for child tax credit anymore and since exemptions were suspended claiming more dependents won't help you.

[anhenry546]

@NCperson I'm not sure if you were talking to me about my son born in September, but if so, yes I am totally aware of this fact. That's why I think it's outrageous that she wouldn't be allowed to get the maximum credit for her child. Even if a baby was born Dec 31st they could claim the entire year. What is their reasoning behind the 17 year cutoff? Do they think kids now a days work? I can't think of one 17 year old that does! But if they did they would be turning in a w2 themselves so they wouldn't be able to be claimed but even then, let's be honest..kids that work don't usually help with daily expenses or bills they just buy things they want. Some things like this really need to be updated.

To the OP- I really hope you find a resolution soon, you are absolutely entitled to the full credit and I hope you get it!

[gamagesa]

Unfortunately, it really depends on your situation.  For me, the two biggest changes are the elimination of the exemptions and the capping of State/Local/Property taxes on the itemized deductions.  If you always had itemized deductions above $24k, then the elimination of the exemptions is huge.  If your itemized and standard were close in the past - hovering around 12k, then the elimination of the exemptions wouldn't be that bad because your new standard deduction makes up for the loss in exemptions.