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Thread: How the GOP tax plan hurts many

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    How the GOP tax plan hurts many

    Suppose you earned $60,000.00 and didn't do with holdings through the fiscal year and you have two children, one 17 and one month years old and the other is 18 years old. Your are also married and filing jointly.

    Under the GOP tax plan you could claim the $24,000.00 standard deduction.

    But you can not claim the personal exemptions as the GOP plan eliminates that.

    How ever the GOP plan has increased the child tax credit from $1,000.00 to $2000.00. However the provision to use the child tax credit requires your child to be under the age of 17 years old. So that doesn't apply here.

    After everything is computed this filer will owe $4447.50.

    Now take that same filer and if he could file only by the 2018 guidelines he would,

    Get the standard deduction of !3,000.00

    He could use the personal exemption of $4150 for each of the people he can claim which would result in an addition deduction of $16,600.00

    After doing the math this filer owes $3607.50

    The significant difference in this case is the GOP's elimination of the PERSONAL EXEMPTION. In both cases neither filer can claim the child tax credit but the personal exemption applies to all people who live in your home and you support. In this case the GOP tax plan has cost this filer an additional $840.00

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    Re: How the GOP tax plan hurts many

    Quote Originally Posted by Rich123 View Post
    Suppose you earned $60,000.00 and didn't do with holdings through the fiscal year and you have two children, one 17 and one month years old and the other is 18 years old. Your are also married and filing jointly.

    Under the GOP tax plan you could claim the $24,000.00 standard deduction.

    But you can not claim the personal exemptions as the GOP plan eliminates that.

    How ever the GOP plan has increased the child tax credit from $1,000.00 to $2000.00. However the provision to use the child tax credit requires your child to be under the age of 17 years old. So that doesn't apply here.

    After everything is computed this filer will owe $4447.50.

    Now take that same filer and if he could file only by the 2018 guidelines he would,

    Get the standard deduction of !3,000.00

    He could use the personal exemption of $4150 for each of the people he can claim which would result in an addition deduction of $16,600.00

    After doing the math this filer owes $3607.50

    The significant difference in this case is the GOP's elimination of the PERSONAL EXEMPTION. In both cases neither filer can claim the child tax credit but the personal exemption applies to all people who live in your home and you support. In this case the GOP tax plan has cost this filer an additional $840.00
    Wait you mean you could claim 18 year old children before the trump tax plan but not after????????????????? Why is an 18 year old counted as a child for tax purposed to begin with????!!!!!!
    “[The metric system is the tool of the Devil! My car gets forty rods to the hogshead, and that’s the way I likes it!” – Abe “Grampa” Simpson”

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    Re: How the GOP tax plan hurts many

    Quote Originally Posted by beerftw View Post
    Wait you mean you could claim 18 year old children before the trump tax plan but not after????????????????? Why is an 18 year old counted as a child for tax purposed to begin with????!!!!!!
    Apparently he's hinging this on the large number of American's whose only dependents are older than 17 but younger than 18, and claiming that they count under current rules, but not under new ones?

    No idea where he's counting the 18 year old, however, unless he is assuming he's in college, in which case they can claim some pretty major college deductions, and aren't likely to be using the standard.

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    Re: How the GOP tax plan hurts many

    Quote Originally Posted by Rich123 View Post
    Suppose you earned $60,000.00 and didn't do with holdings through the fiscal year and you have two children, one 17 and one month years old and the other is 18 years old. Your are also married and filing jointly.

    Under the GOP tax plan you could claim the $24,000.00 standard deduction.

    But you can not claim the personal exemptions as the GOP plan eliminates that.

    How ever the GOP plan has increased the child tax credit from $1,000.00 to $2000.00. However the provision to use the child tax credit requires your child to be under the age of 17 years old. So that doesn't apply here.

    After everything is computed this filer will owe $4447.50.

    Now take that same filer and if he could file only by the 2018 guidelines he would,

    Get the standard deduction of !3,000.00

    He could use the personal exemption of $4150 for each of the people he can claim which would result in an addition deduction of $16,600.00

    After doing the math this filer owes $3607.50

    The significant difference in this case is the GOP's elimination of the PERSONAL EXEMPTION. In both cases neither filer can claim the child tax credit but the personal exemption applies to all people who live in your home and you support. In this case the GOP tax plan has cost this filer an additional $840.00
    Too bad, 840 dollars, but have they closed any loopholes for the rich?
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    Re: How the GOP tax plan hurts many

    Quote Originally Posted by beerftw View Post
    Wait you mean you could claim 18 year old children before the trump tax plan but not after????????????????? Why is an 18 year old counted as a child for tax purposed to begin with????!!!!!!
    Many 18 year olds are still in high school.

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    Re: How the GOP tax plan hurts many

    Quote Originally Posted by cpwill View Post
    Apparently he's hinging this on the large number of American's whose only dependents are older than 17 but younger than 18, and claiming that they count under current rules, but not under new ones?

    No idea where he's counting the 18 year old, however, unless he is assuming he's in college, in which case they can claim some pretty major college deductions, and aren't likely to be using the standard.
    Please elaborate on the college deductions. I am under the impression that they have been eliminated.
    GOP Tax Bill: What Will Change for Students | Money

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    Re: How the GOP tax plan hurts many

    Quote Originally Posted by JMR View Post
    Please elaborate on the college deductions. I am under the impression that they have been eliminated.
    GOP Tax Bill: What Will Change for Students | Money
    Entertainingly, your own link does not say that, and would answer your questions had you bothered to read it.

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    Re: How the GOP tax plan hurts many

    Quote Originally Posted by JMR View Post
    Please elaborate on the college deductions. I am under the impression that they have been eliminated.
    GOP Tax Bill: What Will Change for Students | Money
    Well that’s what happens when you rely on a 2 month old article to tell you about a bill that just got passed. There ended up being no modification to the student loan deduction or the graduate tuition waiver

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    Re: How the GOP tax plan hurts many

    Quote Originally Posted by Exquisitor View Post
    Too bad, 840 dollars, but have they closed any loopholes for the rich?
    Why are you worried about the rich? Do you earn that much?

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    Re: How the GOP tax plan hurts many

    Quote Originally Posted by Rich123 View Post
    Suppose you earned $60,000.00 and didn't do with holdings through the fiscal year and you have two children, one 17 and one month years old and the other is 18 years old. Your are also married and filing jointly.

    Under the GOP tax plan you could claim the $24,000.00 standard deduction.

    But you can not claim the personal exemptions as the GOP plan eliminates that.

    How ever the GOP plan has increased the child tax credit from $1,000.00 to $2000.00. However the provision to use the child tax credit requires your child to be under the age of 17 years old. So that doesn't apply here.

    After everything is computed this filer will owe $4447.50.

    Now take that same filer and if he could file only by the 2018 guidelines he would,

    Get the standard deduction of !3,000.00

    He could use the personal exemption of $4150 for each of the people he can claim which would result in an addition deduction of $16,600.00

    After doing the math this filer owes $3607.50

    The significant difference in this case is the GOP's elimination of the PERSONAL EXEMPTION. In both cases neither filer can claim the child tax credit but the personal exemption applies to all people who live in your home and you support. In this case the GOP tax plan has cost this filer an additional $840.00
    That is definitely robbery since their effective (taxes due as a percentage of gross income) federal income tax rate went from 6% to 7.4%. Federal income tax burdens that high make going to work hardly worth the effort any more.

    I hope everyone realizes that these folks will have to make terrible sacrifices to manage their income loss of $16.15 every week. That is jerking over $4 out of each of their pockets each and every week! That is about the price of a BK Whopper!

    Imagine if your rent suddenly went up by $70/month - that would be catastrophic for a family of 4 with an an income of only $60K.
    “The reasonable man adapts himself to the world: the unreasonable one persists to adapt the world to himself.
    Therefore all progress depends on the unreasonable man.” ― George Bernard Shaw, Man and Superman

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