2018 Estimated Tax Planning

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LifeIsGood
Posts: 658
Joined: Mon Feb 11, 2008 8:43 pm
Location: Atlanta, GA

2018 Estimated Tax Planning

Post by LifeIsGood » Sun Apr 15, 2018 10:50 am

I just finished my 2017 tax return and now turn to figuring estimated taxes for 2018. I went to On-Line Taxes Inc. (Olt.com) and entered my information. It showed a 2018 federal tax liability of $13,161.00 but under TAX BRACKETS, where it breaks your total tax down by brackets (10%, 12%, 22%) the total equals $16,087.00.
Any ideas why there is an almost $3,000 difference?

adksherm
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Joined: Wed Dec 21, 2016 10:16 am

Re: 2018 Estimated Tax Planning

Post by adksherm » Sun Apr 15, 2018 11:06 am

Is it possible you have dividends or capital gains in your estimate for 2018 that are taxed at rates lower than the tax tables ?

LifeIsGood
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Joined: Mon Feb 11, 2008 8:43 pm
Location: Atlanta, GA

Re: 2018 Estimated Tax Planning

Post by LifeIsGood » Sun Apr 15, 2018 11:44 am

adksherm wrote:
Sun Apr 15, 2018 11:06 am
Is it possible you have dividends or capital gains in your estimate for 2018 that are taxed at rates lower than the tax tables ?
I do have qualified dividends but OLT has a specific input for them.

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brother7
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Re: 2018 Estimated Tax Planning

Post by brother7 » Sun Apr 15, 2018 11:51 am

How are you using OLT.com to estimate 2018 taxes? I visited the website and everything I read refers to preparing 2017 returns. I don't see anything regarding planning for 2018.

If you use Microsoft Excel, try out the 2018 Federal Income Tax Planner spreadsheet. It's super-awesome!

tmcc
Posts: 86
Joined: Tue Feb 06, 2018 6:38 pm

Re: 2018 Estimated Tax Planning

Post by tmcc » Sun Apr 15, 2018 12:06 pm

you didnt provide nearly enough info unless this is a ouija board exercise

are you w2, 1099, or what? do you anticipate making more or less in 2018 versus 2017?

do you have employer deductions? cap loss carryforward? casualty losses?

itemize or standard deduction? children? head of household?

mortgage interest, RET, SALT? one time sales tax items?

rental income losses?

LifeIsGood
Posts: 658
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Location: Atlanta, GA

Re: 2018 Estimated Tax Planning

Post by LifeIsGood » Sun Apr 15, 2018 12:20 pm

The page I used for my calculations says Estimate your 2018 tax Return.
brother7 wrote:
Sun Apr 15, 2018 11:51 am
How are you using OLT.com to estimate 2018 taxes? I visited the website and everything I read refers to preparing 2017 returns. I don't see anything regarding planning for 2018.

If you use Microsoft Excel, try out the 2018 Federal Income Tax Planner spreadsheet. It's super-awesome!

LifeIsGood
Posts: 658
Joined: Mon Feb 11, 2008 8:43 pm
Location: Atlanta, GA

Re: 2018 Estimated Tax Planning

Post by LifeIsGood » Sun Apr 15, 2018 12:25 pm

My return is pretty plain vanilla:

MARRIED JOINT RETURN
Will take standard deduction
BOTH OVER 65
Social security
Dividends (mostly qualified)
Interest
$3,000 LT loss carryover
LT capital gains
IRA RMD

1st year for RMD so income will be higher in ‘18 vs ‘17.

That’s it.

tmcc wrote:
Sun Apr 15, 2018 12:06 pm
you didnt provide nearly enough info unless this is a ouija board exercise

are you w2, 1099, or what? do you anticipate making more or less in 2018 versus 2017?

do you have employer deductions? cap loss carryforward? casualty losses?

itemize or standard deduction? children? head of household?

mortgage interest, RET, SALT? one time sales tax items?

rental income losses?

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Sheepdog
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Joined: Tue Feb 27, 2007 3:05 pm
Location: Indiana, retired 1998 at age 65

Re: 2018 Estimated Tax Planning

Post by Sheepdog » Sun Apr 15, 2018 1:43 pm

Marketwatch published an article this week at https://www.marketwatch.com/story/the-n ... ss=1titled "The Trump Tax---Will You Pay More or Less".

Complete the "Tax Calculator". See how you stand. Interesting look. (I am not helped as it shows my tax will be more, by the way, but I don't have to pay much in taxes anyway.)
People should not say everything they think. They should think about everything they say.

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Rainier
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Joined: Thu Jun 14, 2012 5:59 am

Re: 2018 Estimated Tax Planning

Post by Rainier » Sun Apr 15, 2018 3:15 pm

Warning... OLT doesn't cap SALT at $10,000.

for example if you enter:

State income tax $9000
Local property tax: $9000
Mortgage interest: $10000

OLT will give you a $28,000 deduction, but it should only give you $20k for itemized.

Just make sure you manually pick itemized or standard and know the rules on the itemized caps.

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FiveK
Posts: 4376
Joined: Sun Mar 16, 2014 2:43 pm

Re: 2018 Estimated Tax Planning

Post by FiveK » Sun Apr 15, 2018 3:47 pm

LifeIsGood wrote:
Sun Apr 15, 2018 10:50 am
I just finished my 2017 tax return and now turn to figuring estimated taxes for 2018. I went to On-Line Taxes Inc. (Olt.com) and entered my information. It showed a 2018 federal tax liability of $13,161.00 but under TAX BRACKETS, where it breaks your total tax down by brackets (10%, 12%, 22%) the total equals $16,087.00.
Any ideas why there is an almost $3,000 difference?
No, but you could try the "what if?" worksheets of TurboTax, TaxAct, etc., or the personal finance toolbox spreadsheet for a third opinion. The latter tool can also show you the marginal rate for more tIRA withdrawals if you are interested.

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