IRS season: did Trump deliver? Or was the tax cut fake news?
- Thread starter the cac mamba
- Start date
XannyWarbucks
Superstar
Lol. I do CPA work and financial counselling for lower-income families on the side, and you should've heard how many of them were talking shyt last year about how they were going to make more because "Trump knows more about money than Obama." Now they have to pay more towards state because deductions were fukked over and they've been calling the office non-stop. I told the secretary I wasn't taking any calls as it pertains towards taxes because the numbers I input are all correct also told her to tell them, "this is the trump tax reform that was meant to help all of us." 
Withholding tables were changed to front load more income into paychecks
For most people if they do the math with tax liability and the extra cash every month they had a net positive 2018 over 2017
Unfortunately most people who look at their refunds as free money as opposed to a 0 percent interest loan arent sophisticated enough to understand their refund was basically spread throughout their year
Thus they are unhappy they netted 3000 in actual refund instead of the 4000 from last year but in reality their real refund was 5000 but the delta of 1000 was put into their paychecks instead of being withheld
For most people if they do the math with tax liability and the extra cash every month they had a net positive 2018 over 2017
Unfortunately most people who look at their refunds as free money as opposed to a 0 percent interest loan arent sophisticated enough to understand their refund was basically spread throughout their year
Thus they are unhappy they netted 3000 in actual refund instead of the 4000 from last year but in reality their real refund was 5000 but the delta of 1000 was put into their paychecks instead of being withheld
The reason for that is using your numbers that person would have seen a $76 increase in their bi-weekly paycheck. That is not a significant enough amount to do much with throughout the year. Whereas a larger lump sum allows for a more significant impact.
And that is different for everyone based on their circumstances...most people don't have the same tax situation year to year and many times get slight bumps in pay but you are correct that psychologically it won't have the same impact for people depending on the actual delta. If the delta is 300 to 400 a month more on monthly income that will help with real time cash flow and it's more of a personal decision where someone can pay a car payment using that and have more they can save themselves in their own savings account. Most people aren't wired that way unfortunately.
Haven't done mine yet but I will report out shortly.
88m3
Fast Money & Foreign Objects
has your trust fund, trump jr-esque lifestyle been negatively affected? these taxes are sounding awful in NY
this is what i was looking for
