2018 Tax Threshold Estimates

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Alan S.
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2018 Tax Threshold Estimates

Post by Alan S. » Fri Sep 15, 2017 12:26 pm

These estimates are typically confirmed by the IRS in a few weeks.

http://news.cchgroup.com/2017/09/15/wol ... unts-2018/

gkaplan
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Re: 2018 Tax Threshold Estimates

Post by gkaplan » Fri Sep 15, 2017 12:39 pm

Thanks, Alan.
Gordon

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Thrifty Femme
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Re: 2018 Tax Threshold Estimates

Post by Thrifty Femme » Fri Sep 15, 2017 9:38 pm

Alan S. wrote:
Fri Sep 15, 2017 12:26 pm
These estimates are typically confirmed by the IRS in a few weeks.

http://news.cchgroup.com/2017/09/15/wol ... unts-2018/
Thanks, any word on 401k elective contribution limits and highly compensated employee definition?

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tfb
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Re: 2018 Tax Threshold Estimates

Post by tfb » Fri Sep 15, 2017 9:52 pm

Thrifty Femme wrote:
Fri Sep 15, 2017 9:38 pm
Thanks, any word on 401k elective contribution limits and highly compensated employee definition?
$18,500. No change to HCE threshold.
Harry Sit, taking a break from the forums.

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dwickenh
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Re: 2018 Tax Threshold Estimates

Post by dwickenh » Fri Sep 15, 2017 9:56 pm

Where are the inflation adjustments on SS income? One of the worst tax hits on the books with no inflation adjustment. We should march on Washington for that one!

Taxes get me excited if you couldn't tell.

Dan
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

Alan S.
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Re: 2018 Tax Threshold Estimates

Post by Alan S. » Fri Sep 15, 2017 10:24 pm

dwickenh wrote:
Fri Sep 15, 2017 9:56 pm
Where are the inflation adjustments on SS income? One of the worst tax hits on the books with no inflation adjustment. We should march on Washington for that one!

Taxes get me excited if you couldn't tell.

Dan
The 2018 SS COLA should be announced on 10/16 (Mon) since the Sept CPI-W will be released on 10/13 (Fri). The COLAs for the last two years were announced a day or two after the Sept CPIW was released. However, the Medicare Part B premium comes later, so even when the COLA is announced you will not know how much of that COLA will be diverted to higher Part B premiums.

As for taxation of your gross SS benefit, the basic (non IRMAA) AGI tiers never change and that results in ever more people paying taxes on the benefits they do receive every year. The IRMAA surcharge tiers are inflation adjusted, however an ACA provision froze inflation adjustments through 2019, after which they are scheduled to return.
Last edited by Alan S. on Fri Sep 15, 2017 10:33 pm, edited 1 time in total.

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dwickenh
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Re: 2018 Tax Threshold Estimates

Post by dwickenh » Fri Sep 15, 2017 10:30 pm

"As for taxation of your gross SS benefit, the basic (non IRMAA) AGI tiers never change and that results in ever more people paying taxes on the benefits they do receive every year."

This is that part that gets me excited as I do taxes for AARP as a volunteer and see the people this tax law is affecting. An elderly couple making 44000.00 after their deductions are paying taxes on 85% of their SS. They could at least use an inflation adjustment on the 44000.00 each year!!!!

Dan

edit- i realize that the SS amount in the income calculation is figured at 50% of SS, but even with that it doesn't take much to reach the 44000.00
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

Alan S.
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Re: 2018 Tax Threshold Estimates

Post by Alan S. » Fri Sep 15, 2017 10:37 pm

Yup. I edited my post to add a comment about the IRMAA tiers. They are also catching more people every year, but inflation adjustments on the MAGI for IRMAA purposes should return in 2020 without any more legislation.

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Thrifty Femme
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Re: 2018 Tax Threshold Estimates

Post by Thrifty Femme » Sat Sep 16, 2017 7:24 am

tfb wrote:
Fri Sep 15, 2017 9:52 pm
$18,500. No change to HCE threshold.
Bummer, thanks.

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Thrifty Femme
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Re: 2018 Tax Threshold Estimates

Post by Thrifty Femme » Sat Sep 16, 2017 7:27 am

Thrifty Femme wrote:
Sat Sep 16, 2017 7:24 am
tfb wrote:
Fri Sep 15, 2017 9:52 pm
$18,500. No change to HCE threshold.
Bummer, thanks. Do you know what controls the decision to increase those amounts?

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tfb
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Re: 2018 Tax Threshold Estimates

Post by tfb » Sat Sep 16, 2017 8:28 am

Thrifty Femme wrote:
Sat Sep 16, 2017 7:27 am
Bummer, thanks. Do you know what controls the decision to increase those amounts?
Inflation and rounding increments coded into the law. $500 increments for 401k. $5,000 increments for HCE threshold. As the numbers stand now, it takes less than 3% in inflation to bump the 401k limit but more than 4% to bump the HCE threshold. As the levels increase, they will bump up more often.
Harry Sit, taking a break from the forums.

clydewolf
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Re: 2018 Tax Threshold Estimates

Post by clydewolf » Sat Sep 16, 2017 8:42 am

In 2017 the Medicare B premium for new beneficiaries is about $134 per month.

If your current medicare premium is less than the $134, you can easily see that your SS benefit adjustment will go toward paying more for Medicare B.

As for the taxing of our SS benefit, when we are age 70-1/2 and have a Traditional IRA, be sure to take advantage of the Qualified Charitable Distribution (QCD). The QCD may help to reduce the amount of your SS benefit that is taxable.

Tiffku08
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Re: 2018 Tax Threshold Estimates

Post by Tiffku08 » Sat Sep 16, 2017 10:32 am

Thanks!

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