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The Water Cooler
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How many of you people are retired? Are you benefiting from the new federal tax rate?
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<blockquote data-quote="tRidiot" data-source="post: 3083607" data-attributes="member: 9374"><p>Have had this conversation with the wife a number of times... she didn't want to change my deductions to bring home more each month, as she reasoned that we wouldn't save as much of that at a time and preferred the idea of a big windfall in April. I will admit, the last 2 years of this have felt very nice to get that big refund (on paper) but every penny went to back taxes from a couple of years ago when I was out of work for half the year.</p><p></p><p>This year, we will be getting a very large refund due to this - something she had planned for and is eagerly looking toward doing some remodeling on the house she's been wanting to do. Unfortunately, we had some big expenses this month in helping my parents move and spent a ton we weren't planning on, and still have some other outstanding debt. I texted her tonight and told her I don't think we should be spending money on home improvements or vacation (drat!) until we take care of some of that stuff. Her response was a very terse, "Ok." I'm afraid I might be in the doghouse...</p><p></p><p>She did agree a few weeks ago that we should change our deductions, when I showed her how much extra monthly income it would net, and that we could put that in a money market account or something and earn at least something on it throughout the year, instead of it sitting in the .gov's bank account and earning us nothing.</p><p></p><p>Sadly, looking at the tables posted above, I am in one of only 2 tax brackets that got absolutely no rate reduction. Drat, again. <sigh> It is possible, since I have cut back a tiny bit on work, if I don't pick up anything extra this year, that I may drop into the next lower bracket, which would give me a 3% cut over last year's taxes. I maxed out my IRA contributions this year, but I don't think it's going to end up being enough to get me into the next lower tax bracket. <img src="/images/smilies/frown.png" class="smilie" loading="lazy" alt=":(" title="Frown :(" data-shortname=":(" /> Is that how it works? It comes off your net taxable income which is used to determine your ultimate bracket? Or is your bracket based strictly on your gross before any deductions?</p><p></p><p><edit> Oops. I'm a dumbass. All those deductions contribute to AGI, which gives you your tax bracket. I used one online calculator with some guesstimates of deductions and it told me I was going to get back a LOT less than I thought... I don't know. This **** is all confusing to me.</p></blockquote><p></p>
[QUOTE="tRidiot, post: 3083607, member: 9374"] Have had this conversation with the wife a number of times... she didn't want to change my deductions to bring home more each month, as she reasoned that we wouldn't save as much of that at a time and preferred the idea of a big windfall in April. I will admit, the last 2 years of this have felt very nice to get that big refund (on paper) but every penny went to back taxes from a couple of years ago when I was out of work for half the year. This year, we will be getting a very large refund due to this - something she had planned for and is eagerly looking toward doing some remodeling on the house she's been wanting to do. Unfortunately, we had some big expenses this month in helping my parents move and spent a ton we weren't planning on, and still have some other outstanding debt. I texted her tonight and told her I don't think we should be spending money on home improvements or vacation (drat!) until we take care of some of that stuff. Her response was a very terse, "Ok." I'm afraid I might be in the doghouse... She did agree a few weeks ago that we should change our deductions, when I showed her how much extra monthly income it would net, and that we could put that in a money market account or something and earn at least something on it throughout the year, instead of it sitting in the .gov's bank account and earning us nothing. Sadly, looking at the tables posted above, I am in one of only 2 tax brackets that got absolutely no rate reduction. Drat, again. <sigh> It is possible, since I have cut back a tiny bit on work, if I don't pick up anything extra this year, that I may drop into the next lower bracket, which would give me a 3% cut over last year's taxes. I maxed out my IRA contributions this year, but I don't think it's going to end up being enough to get me into the next lower tax bracket. :( Is that how it works? It comes off your net taxable income which is used to determine your ultimate bracket? Or is your bracket based strictly on your gross before any deductions? <edit> Oops. I'm a dumbass. All those deductions contribute to AGI, which gives you your tax bracket. I used one online calculator with some guesstimates of deductions and it told me I was going to get back a LOT less than I thought... I don't know. This **** is all confusing to me. [/QUOTE]
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