[2018 tax return - How does it compare to previous years?]

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umfan11244
Posts: 36
Joined: Sat Feb 09, 2019 11:06 am
Location: Georgia

Re: [2018 tax return - How does it compare to previous years?]

Post by umfan11244 » Fri Mar 08, 2019 2:36 pm

I paid $19000 in tax last year and just under $19000 this year. Most likely the result of my newborn tax write-off (baby). So overall, I’d say it’s about even.

Crow Hunter
Posts: 909
Joined: Wed Jun 27, 2012 12:05 pm

Re: [2018 tax return - How does it compare to previous years?]

Post by Crow Hunter » Sat Mar 09, 2019 10:23 am

~4.5% increase in AGI from 2017 to 2018.

Effective tax rate went down from 15.5% to 13%. :moneybag

Standard deduction both years.

We are DINKS in a VLCOL area, no mortgage, AGI was ~$165k for 2018.

Went from owing ~$250 to getting a refund of ~$150

:sharebeer

iflyjetzzz
Posts: 113
Joined: Fri Dec 19, 2014 12:30 am

Re: [2018 tax return - How does it compare to previous years?]

Post by iflyjetzzz » Sat Mar 09, 2019 4:23 pm

Our 2018 1040 line 10 shows a taxable income of ~$550K. Thanks in part to getting rid of the Pease and PEP phaseouts, our taxes were ~$25K lower than what they would have been under the previous tax code.
We live in a low tax state (NV) so we weren't hurt by SALT limitations.

For anyone thinking we aren't paying our 'fair share' of income taxes, our federal taxes paid for 2018 was $145,000.

pindevil
Posts: 71
Joined: Thu Apr 03, 2014 11:04 am

Re: [2018 tax return - How does it compare to previous years?]

Post by pindevil » Tue Mar 12, 2019 12:14 am

Tax owed is ~10k less than last year. Effective tax rate went from 18% to 15%.

Being able to claim child tax credit with the higher phase out was a nice bonus!

rick51
Posts: 82
Joined: Mon Sep 14, 2009 7:33 pm
Location: Maryland

Re: [2018 tax return - How does it compare to previous years?]

Post by rick51 » Tue Mar 12, 2019 3:40 pm

My taxes went up about $300 when taking new standard deduction, but state taxes jumped a few grand. If you take the Federal standard deduction, you can't itemize your Maryland state return. I ran my taxes both ways and I can either itemize and send a few extra grand to the Feds (SALT limits make itemizing a poor choice in my case) or take the standard deduction and send a similar additional sum to the State (small standard deduction makes that a poor choice), so I chose to "buy local".

majiaknight
Posts: 76
Joined: Tue Jan 26, 2016 2:55 pm

Re: [2018 tax return - How does it compare to previous years?]

Post by majiaknight » Thu Mar 14, 2019 3:04 am

Living in CA I thought my family (MFJ+1Kid+Mortgage+Itemized Deduction) might be negatively affected but it turns out we've paid slightly less (<$200) total Fed tax w/ 10.6% increase in AGI for 2018. Our Fed effective tax rate drops 2.15% to 19.59% from 21.74% last year. CA effective tax rate slightly increases to 7.01% from 6.84%. :happy

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RickBoglehead
Posts: 2506
Joined: Wed Feb 14, 2018 9:10 am

Re: [2018 tax return - How does it compare to previous years?]

Post by RickBoglehead » Thu Mar 14, 2019 12:37 pm

I just ran my 2018 numbers through TurboTax 2017 to see the difference. When I did this for a relative, retired, only dividends, interest and capital gains, it showed that they didn't get a benefit, had a small increase.

When I put my numbers in, I was very surprised to see that my total tax was 8.5% less than under TurboTax 2018. Deductions came up 3,2% less, which I attribute to the QBI being larger than in 2018 than the missed SALT deductions, so my income came up higher, and I owed more tax. A pleasant surprise, because I was very skeptical that I'd see one dime more. But I did.
Avid user of forums on a variety of interests - financial, home brewing, F-150, PHEV, home repair and more. Enjoy learning and passing on knowledge.

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simplesimon
Posts: 3261
Joined: Mon Feb 25, 2008 8:53 pm
Location: Boston, MA

Re: [2018 tax return - How does it compare to previous years?]

Post by simplesimon » Fri Mar 15, 2019 1:02 pm

MFJ, took the standard deduction, no children. Effective tax rate declined by 2.5%.

darrvao777
Posts: 232
Joined: Wed Sep 10, 2014 1:34 pm

Re: [2018 tax return - How does it compare to previous years?]

Post by darrvao777 » Sun Mar 17, 2019 11:37 am

simplesimon wrote:
Fri Mar 15, 2019 1:02 pm
MFJ, took the standard deduction, no children. Effective tax rate declined by 2.5%.
Same but with 1 child

apple44
Posts: 27
Joined: Tue Feb 19, 2019 3:22 pm

Re: [2018 tax return - How does it compare to previous years?]

Post by apple44 » Tue Mar 19, 2019 1:56 pm

Just finished my federal return. The 2018 Form 1040 looks so different from the 2017 Form!

Due to the $10,000 cap on property tax, I'm taking a standard deduction vs. itemized deduction like I did in the previous years.

However, my earnings went up by $38K and total tax went down by $2K, and the effective tax rate decreased from 20.86% for 2017 to 18.03% for 2018. Hooray!

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