All it seems this month it is taxes this, and taxes that. Which is understandable. Property tax breaks could be on the chopping block according to some GOP proposed tax plans, which could eliminate it and other tax breaks altogether. To remind us of the sheer advantages and disadvantages of the Property tax, I found a decent article with the breakdown. According to the first article:
Nearly 35 million families deducted their taxes on their home or other real estate from their federal taxable income in 2016. They saved a total of $33 billion.
If property tax breaks were to go the way of the Dodo, how much of an impact would this have on the majority of Americans, come tax season? I suppose, we should ponder the statistics of who owns vs rents property etc. Thoughts?
JaredS Wrote: Interesting. I'm no Trump fan, but I totally can envision him vetoing any bill he doesn't like. Would be a big moment in history for the Republican party if he does.
I actually think the opposite. I have a feeling that President Trump would sign anything the Congress sends him and then try to spin it to his advantage. I just can't see him vetoing something that the House and Senate sends him which privatizes Medicaid and cuts Social Security.
Agreed, but I don't think he'd take that risk. At this moment, I'm sure he is focusing on creating a solid legacy for reelection. To be obtuse to the party-controlled congress would be career suicide, especially when the GOP is slightly polarized when it comes to their approval of him.
Good thread. Wanted to bump to include this:
4 Tax Breaks Millennials Can’t Afford to Miss
Includes some that we haven't yet covered here, mainly:
Retirement Saver's Credit. If you make less than $30,500 and are already putting money back for retirement, then you qualify for a $1000 tax credit.
Lifetime Learning Credit. If you are paying for your schooling mostly out of pocket and make less than $64k, you can possibly qualify for as much as a $2,000 credit as well.
Moving Expense Deduction. If you relocated because of a job switch more than 50 miles away, you can deduct - driving expenses, shipping and storage fees, plus the costs of hiring a moving van.
Share more if you can find any.
Thanks for the update on this. Knowledge is power, especially when it comes to government programs etc.
I agree, this really does come in handy whenever you are switching to another filing source, and you don't have your last year's taxable income on hand, or years prior, for that matter.
J.K.Logic Wrote: Sounds like the COLA is doing its job then, right? It should match inflation rises over time. If it's a wash, that's a good thing. I'll throw at back at you as I'm curious, is it mostly a wash, or should the COLA be slightly higher to cover more inflation?
I agree there is. It's at least a little frustrating to see something so talked about, only to learn it doesn't really matter. I wonder what the Gov's process is for the COLA. How do they really go about deciding on a number?
I'm sure many of you have heard about Social Security's cost of living adjustment (COLA) of .3% this year. What some of you may not know is how it will work with Medicare. At best, those receiving the adjustment will see an extra five or so bucks on their check every month. One of the most frustrating things about this, which is so tedious that it almost shouldn't be reported on in the first place, is the increases in medicare premiums will essentially devour the COLA. Simplistically, the COLA will be cancelled out for most Americans, especially those who have their Medicare Part B premiums paid by a deduction from their Social Security benefits. To dip further in this subject, feel free to check out this article. Also, here is another one with a breakdown of people in different situations and how this will affect them.
It is said, and according to this article, President Trump has proposed the most significant tax cuts since the Reagan administration.
The proposal calls for reducing personal income tax rates from 7 to 3 brackets, at 12%, 25% and 33%. It would increase the standard deduction to $15k, which is currently at a little over $6k for single filers, and $30k for married couples, which is currently a smidge over $12k.
I suggest checking out the graph in the article. It portrays the estimated savings taxpayers would have annually, based on their income. As if the estate tax really applies to the majority of Americans, the plan also calls for its repeal.
At the same time, the plan calls for repealing personal exemptions and for dependents, as well as the head of household filing status. Which would mean that single parents with dependent children and most married households with at least three dependents would pay more in income taxes.
The Plan also caps itemized deductions at $100k for single, and $200k for joint filers.
So, what does the article say to taxpayers who may have to prepare for a possible tax reform?
"Whenever possible, defer any realized gains to down the road because we may have lower tax brackets during the Trump administration," said James Gambaccini, a certified financial planner and managing partner at Acorn Financial Services in Reston, Virginia.
In my opinion, the plan proposes both negative and positive changes. If implemented, it may help a great deal of taxpayers, and possibly, stimulate the economy, at the same time, it may prompt taxpayers to clutch tighter on the purse strings. How would these possible changes affect you?
It's sad that there is such a monopoly on higher education, that people spend most of their lives paying off their loans. My uncle went back to school in his early 30's and didn't pay off his debt until his mid 50's.
It's both good and bad, in my opinion. The public school systems are a gamble of district and neighborhood. The other types of schooling is just as much of one, I think. When comes to charter schools, you have your fly-by-night, pop up schools with low budgets, and poor building conditions. It all depends on how much the parents pump into the schools. Private schools seem to be the best way to go in order to obtain a decent education these days. They are able to hire better teachers... etc... etc. I hear boarding school is very similar, in that respect. I think home school is just flat out wrong. The kids hardly get a chance to obtain the social skills that one gets in other schools.
You've heard it right, folks. The Fed is actually going to help some people with their student debt. This Wall Street Journal article, laid it all out pretty well. Which such a growing problem in loan debt, it is a relief to see something like this happening in the next few years. It may actually have a positive impact on the economy, less debt would have to equal more consumption, right? At the same time, I'm afraid that those who don't necessarily deserve it will take advantage of the program. The article said it best:
Growing evidence suggests many of the most hard-pressed borrowers—college dropouts who owe less than $10,000—aren’t taking advantage of the programs, while workers with graduate degrees, such as doctors and lawyers who don’t necessarily need help, are.
What pros and cons have I not thought of?