Your TAXES

[jackstraw]

There has to be a CPA mixed in with all the dentists, no?

This wonderfully tremendously huuuge 'tax cut and jobs act' cut the tax rate from 39.6 to 37% for all of us maggots making over $470,700!!

More heli trips for all!!!

[SumJongGuy]

We got 3 times what we got back last year... Because both bread winners were unemployed for a couple months and earned a lot less than we had withholding set for.

[jackstraw]

If you owe, just look at it as an interest-free loan.

[PassTheDutchie]

If you owe, just look at it as an interest-free loan.

Uh, not quite. There is a penalty if you owe over $1K, which the IRS enforces aggressively.

[grskier]

We got about 14% less back the best I can gather. We don't make that kinda scratch though...

[jackstraw]

Uh, not quite. There is a penalty if you owe over $1K, which the IRS enforces aggressively.

See, I knew we all were not dentists!

One way to get in trouble is not withholding enough if you get a bonus I suppose. I always tend to owe $400-$700 and personally I'd rather owe then get anything back. Ideally breaking even is the way, but the last thing I want is the feds to have any of my money.

[muted]

If you owe, just look at it as an interest-free loan.

I got an interest check from the IRS a month ago for all the pre-payments I did last year. Not sure why/how, but it was sweet.

[old goat]

Uh, not quite. There is a penalty if you owe over $1K, which the IRS enforces aggressively.

Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if they paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller. (from the IRS site)

[adrenalated]

My tax rate dropped 3% compared to last year. However, due to the changes in where the tax brackets break, next year I'll go up a tax bracket (under the old breaks I would have stayed in the same bracket). The new bracket will be 1% lower than 2017 so basically a wash. (EDIT: actually since I'm getting married this summer, I'll be able to file jointly and stay in the lower tax bracket.)

My refund for 2018 is 75% lower than my 2017 refund, which is fine, means my withholding is much more accurate.

[GoldMember]

Wait....is it April 14th already?

[PB]

Uh, not quite. There is a penalty if you owe over $1K, which the IRS enforces aggressively.

Uh oh ...... we routinely pay $2-4K due to my wife's "complicated" earnings situation; is the sword about to fall??

[Dantheman]

Wait....is it April 14th already?

Shit, I'd have mine done already if my wife's current employer would deliver her god damn 1099 already. TurboTax prices go up Mar. 1.

Speaking of which, are there any cheaper/better alternatives to TT? Not itemizing any more with the increased standard deduction, but the Mrs. had 4 jobs over the course of the year, we maxed out an HSA, received ACA subsidies, and contributed to a 529.

[Chugachjed]

We started going to an accountant because we had to amend 4 previous years taxes for rental income and depreciation on said rental. It was barely more expensive than TurboTax which caused the damn problems in the first place, and damn it wasn’t expensive. He went over our prior TurboTax filed years and ended up saving us about 10x what he charged and turned a $10k tax debt into $2500. Fuck doing my own taxes ever again.

[grskier]

We used the h&r block online platform, pretty straight forward, answer the questions and plug in the numbers.

I do it in about an hour and a manhattan after I get everything together....

[wooley12]

I flunked Acct 101 twice but I did sleep in a Holiday Inn recently. It seems to me that measuring your year to year difference in line 63 Total Tax would give a clearer picture of the new code
s impact. That said, I swear that this is the last I do a 1040A. I NEED A SCHD C!!!

[Timberridge]

Feel good tax story of the day.

https://www.nydailynews.com/news/nat...214-story.html

[54-46]

I’m losing $18000 in deductions due to SALT limitation and the loss of the personal exemption, so my taxes are going up by quite a bit.

[skaredshtles]

I’m losing $18000 in deductions due to SALT limitation and the loss of the personal exemption, so my taxes are going up by quite a bit.

Somebody has to pay for The Wall... and it ain't gonna be Mexico.

[fastfred]

You guys file taxes. That's kind of dumb

[XXX-er]

I usually pay a little which is fine, i use the simpletax.ca which is a Canadian based software, cuz being retired my taxes are pretty simple

its almost free cuz you can pay what you want

even nothing

[evdog]

Uh, not quite. There is a penalty if you owe over $1K, which the IRS enforces aggressively.

I owe $2k this year. In 2015 I screwed up my withholdings and owed $7k. Pretty sure I was never assessed a penalty.

Compared to last year my tax rate dropped 3%, taxable income was the same.

After a big refund last year and adjusting withholding I was still expecting a smaller refund this year, so owing $2k was a disappointment.

FWIW I've used Taxslayer for about 6-7 years. It started out cheap, free Fed return and $10-15 state, but they have been upping the charges each year so now it is around $50 total. Not sure if it is worth it to start with a new software that I'd have to import data into, that will start cheap but probably also up the fee over time. I used a CPA for a few years, and the guy charged me about $150 each year. Needed him the first year when I moved from Canada and had some pretty complex issues.

[wooley12]

You guys file taxes. That's kind of dumb

It sure was easier when I was sent multiple 1099's on pieces of tissue paper and taxes were done in pencil first. I feel for you guys. Can dentists still pay their 15 y o kid to clean the office for $50/wk? Wash the car for $30? I could go to dinner at a trade show with 6 other salesmen tell the waitress "Put it all on one check, and give everyone a copy." 100% deductible. Are sales samples you have to buy still deductible? I could deduct them and then sell them at a profit.

[Obstruction]

I’m losing $18000 in deductions due to SALT limitation and the loss of the personal exemption, so my taxes are going up by quite a bit.

Likewise... so much fucking winning.

[Fritz]

Uh, not quite. There is a penalty if you owe over $1K, which the IRS enforces aggressively.

I usually take the penalty and pay by the extension deadline. Still pretty cheap money. I typically owe north of $20k though.

[Marshall Tucker]

Few observations from a dentist

1. I beleive, for 70% of taxpayers or so, that W-2 income is about 90%+ of adjusted gross income. I beleive taking your tax after credits, just before you deduct cash payments, dividing by your GROSS w-2 wages (Medicare taxable) is the most relevant measure of tax efficency. By that measure iv'e (my wife and I) have been in the 10-12% range for a while. With the new act, we lost 20k in deductions for personal exemptions, $7k for state tax. We lost an additional 13k deduction just through life events. We are right around 15% this year. Which is painful. At least for us dentists.
2. Personal exemptions and state tax are screwing a lot of the middle class.
3. Nobody smart pays a 2210 penatly, or ANY penalty this side of trust fund-related, for that matter. You should always owe 1-2k with your return/extension (i.e. a payment that has to be made by april 15th). , and StrawJack is spot on. It IS an interest free loan. In the purest sense of the term. Refund is the inverse of that, you loan trump money interest free. Always cracks me up people talking about thier refunds. Kinda like other CPA/dentists who instantly get all defensive trying to argue about buying a new car vs slightly used.
4. When you start throwing in Sch E, K-1s, high levels of investment income (say north of 10k on a regular year-end year out basis), Sch C, your situation becomes way more unique and meningful metrics become very, very difficult.