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New Tax Laws

Lizard King

Lizard King

Administrator
Staff Member
Sep 9, 2010
14,536
7,975
How did they hit you this year? Didn't realize I was bringing more home every check last year, guess I was. Went from getting back around $7K last year to owing $2K this year with a $13K increase in salary.
Wasn't expecting $7K back again this year but was hoping for something, not expecting to pay $2K :(
 
R

rawdeal

TID Board Of Directors
Nov 29, 2013
4,315
3,477
Way before the tax break you're referring to, the common wisdom was that your numbers are great, and that wisdom still applies today. That $7K you got back last time means you were loaning your money to the government interest-free instead of having it in your possession. When you received that $7K the gov't was just paying back money they owed you, without adding any interest to it. This year the $2K you have to pay means they loaned you that much during the year. Now, you have to pay them back, but without any interest.

There ARE potential penalty fees if you owe them too much for last year, based on what percentage of your income your debt is. If you owe too high a percentage, THEN you must pay them the amount you owe plus a penalty fee, cause they don't like giving interest-free loans, only receiving them. Remember how you did that during 2019, and you'll have the same good news next year as long as you don't owe enough to incur a penalty.
 
Lizard King

Lizard King

Administrator
Staff Member
Sep 9, 2010
14,536
7,975
I used it as a forced savings, I like getting back around $5K, pays off all the Christmas bills and a little something leftover in LK's pocket.
 
R

rawdeal

TID Board Of Directors
Nov 29, 2013
4,315
3,477
Guessing (most) people are in 1 or 2 categories: those who do what you do, or those who don't have a clue and are surprised to see how the numbers turn out each year. But there is a 3rd category, possibly higher income people(?), and that would be those who like receiving interest-free (and penalty-free) loans from the gov't or anyone else so they can put that money to use making them more money during the year. The general principle still applies under the new Tax Law, just have to adjust your numbers to new ones that work with their new numbers.
 
BrotherIron

BrotherIron

VIP Member
Mar 6, 2011
10,717
2,808
I never owe but I didn't get as much back... One good thing about having a school background. Gotta get creative,
 
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tommyguns2

tommyguns2

Senior Moderators
Staff Member
Dec 25, 2010
6,313
5,004
I'm always torn about even looking at the details of my tax return. Usually, I just let me financial people prep everything, I sign it, and then give it back and have them cut the checks. Ignorance is bliss for me, because knowing how badly I'm getting screwed just makes me mad...

I do the same thing at home with our monthly bills. Let my wife handle it, and what I don't know won't hurt me! LOL
 
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rawdeal

TID Board Of Directors
Nov 29, 2013
4,315
3,477
I used to be the same way Tommy, till I noticed my wife was writing a check for our pool boy 12 months a year and putting "for extra services" in the lower left corner of the checks. I was furious and demanded this end, we had a bigtime fight, and I was able to negotiate a compromise whereby she agreed to only add a 5% cost-of-living to his checks next year.

Ya gotta be smart about these things .....
 
JackD

JackD

Senior Moderators
Staff Member
Sep 16, 2010
6,408
1,608
I hate the tax laws. 2 years ago had to pay 4K in taxes. Last year I was able to break even with the fed and a CA refund. This year... I’m sure it’s gonna be a slam
 
S

SilverFox

Senior Member
Oct 31, 2018
128
106
I got a $20 per wk bump in my weekly check and at tax time this year I got about the same refund as I got for 2017.
 
tommyguns2

tommyguns2

Senior Moderators
Staff Member
Dec 25, 2010
6,313
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I'd be somebody's pool boy, but I'm so cheap no check would need be written... LOL

I used to be the same way Tommy, till I noticed my wife was writing a check for our pool boy 12 months a year and putting "for extra services" in the lower left corner of the checks. I was furious and demanded this end, we had a bigtime fight, and I was able to negotiate a compromise whereby she agreed to only add a 5% cost-of-living to his checks next year.

Ya gotta be smart about these things .....
 
Snachito1

Snachito1

VIP Member
Jan 12, 2018
298
243
I didn't get slammed, BUT I would always get around 2500 every year but this year all I got back was 200!!!
 
DungeonDweller

DungeonDweller

VIP Member
Mar 21, 2017
1,534
1,334
I had to pay a little in for the first time in a long time. I don't mind; I hate the idea of the government using my money for up to a year interest free.
 
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