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can i ask a really stupid question?
if this passes will we do our 2017 returns with these #s?
if this passes will we do our 2017 returns with these #s?
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can i ask a really stupid question?
if this passes will we do our 2017 returns with these #s?
I've been looking for this info as well, but can't find anything with internet search.Erstwhile Dance Theatre of Dayton performer cum bellhop. Carried (many) bags for a lovely and gracious 59 yo Cyd Charisse. (RIP) Hosted epic company parties after Friday night rehearsals.Comment
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No.
The bill is for 2018 with individual cuts sunsetting in 2026Comment
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This pass through deduction phase out is confusing to me. 20% deduction up to 315k for professionals, but what happens after that? Do we get the deduction for the first 315, then nothing after that? Does it gradually reduce? Does going over 315 wipe out the deduction entirely?
Let’s say I make 400 in 2018, anyone know how the deduction would play out?Comment
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This pass through deduction phase out is confusing to me. 20% deduction up to 315k for professionals, but what happens after that? Do we get the deduction for the first 315, then nothing after that? Does it gradually reduce? Does going over 315 wipe out the deduction entirely.
Let’s say I make 400 in 2018, anyone know how the deduction would play out?
Asked the same question in the thread below.Comment
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Interesting. For MFJ, the 24% bracket changes to $165K to $315K (was $140K to $320K in final Senate version). Top rate/bracket changes from 38.5% @ $1M to 37% @ $600K. Net effect for taxable incomes over $320K, but below $600K is $100 savings. Beats a stick in the eye!
Yea. Much ado about nothing.
Thanks Government!Comment
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Good luck fitting this on a postcard. Retention of seven brackets, marriage penalty, AMT, and most of the deductions the House bill axed. Reducing deductions such as SALT and mortgage interest without indexing to inflation is worse than both eliminating them and leaving them unchanged. I’m sure the stupid Pease limitation hasn’t gone away, nor has the Medicare capital gains surtax. Our tax system still sucks, and this doesn’t make it any better.
I agree. While I'm more than happy for what I'll save in taxes, it isn't much of a tax reform.
I wish tax discussions were less about the class warfare with one party making the system less progressive and the other making it more progressive and more about actually reforming the system.Helping those who wear the white coat get a fair shake on Wall Street since 2011Comment
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You guys can get paid internist rates and feel much better i suppose
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The AMT piece is still relevant. The exemption is $109,400.
Then you pay 26% on the next$187,800
and 28% on remaining income while losing most deductions except first mortgage interest.
So for a hypothetical income of $550,000 with $35k in mortgage and SALT deductions, $54k in retirement plans and another $10k itemized (totally made up numbers), your approximate fed tax is $99k. Your AMT is $97k.
So assuming that person could reduce their first $315k by 20% that would save them around $22k without AMT but basically a wash with AMT.Comment
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I did the math and based on my (probably screwed up) calculations and my (reasonable estimate for) expected income for 2018, and I am saving approximately $10,000 in Federal income tax compared to what I would have paid on the same income and deductions with the 2017 brackets and rules.
If we can classify our imaging center business ownership as a passthrough entity, that might increase the savings.
How would you classify your imaging center as a passthrough? Is it because it is passive income and held in an s-corp of LLC?Comment
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As a dentist in the state of Missouri with a projected income of $465k plus spouse $80k this year filing jointly my taxes are going up quite a bit. State tax 6%. Property tax $8k. Are they saying I can't count any pass through income since I'm over $300whatever? I know I should quit whining but I've been into debt up to my eyeballs for 15 years and am finally making good money and finally saving a lot..... i still have a loan on the practice and this just sucks. I know $400k is a lot of money but the freaking loan payment is considered income and they tax the ************************ out of every nickel I take home.... and I had such hope for this and it sucks (that was a full on tantrum).
...and who the ************************ even wants to live in Missouri? We're stuck here for a pension with my spouse. Can't wait to retire and move to a $0 income tax state.
Waiting for someone to clarify what this pass through exclusion crap means.
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OKay, Let's try again in another 30 years.Comment
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Interesting. For MFJ, the 24% bracket changes to $165K to $315K (was $140K to $320K in final Senate version). Top rate/bracket changes from 38.5% @ $1M to 37% @ $600K. Net effect for taxable incomes over $320K, but below $600K is $100 savings. Beats a stick in the eye!
Yea. Much ado about nothing.
Thanks Government!
I must have confused you. That bracket change/savings is only between the approved Senate bill and the revised committee bill. The changes to taxes owed in those ranges, as compared to current law, are much better.Comment
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As a dentist in the state of Missouri with a projected income of $465k plus spouse $80k this year filing jointly my taxes are going up quite a bit. State tax 6%. Property tax $8k. Are they saying I can’t count any pass through income since I’m over $300whatever? I know I should quit whining but I’ve been into debt up to my eyeballs for 15 years and am finally making good money and finally saving a lot….. i still have a loan on the practice and this just sucks. I know $400k is a lot of money but the freaking loan payment is considered income and they tax the ************************ out of every nickel I take home…. and I had such hope for this and it sucks (that was a full on tantrum).
…and who the ************************ even wants to live in Missouri? We’re stuck here for a pension with my spouse. Can’t wait to retire and move to a $0 income tax state.
Waiting for someone to clarify what this pass through exclusion crap means.
it looks like you are phased out entirely of the pass through rate. and with SALT limited to 10k your tax bill will probably be a little higher with the billComment
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The OP's brackets are not totally congruent with that in this official link: http://docs.house.gov/billsthisweek/20171218/CRPT-115HRPT-466.pdf.
Marriage penalty is still present, but only for MFJ taxable income > $600000 (much better than current marriage penalty that kicks in for MFJ taxable income > $146000).
Ran a very quick and dirty Excel bracket simulations for MFJ. Assumptions: 1. MFJ, 2. does not account for AMT (should not be an issue if you take the standard deduction and income < 1M), 3. does not account for child tax credit, 4. does not account for Medicare tax. Sweet spot appears to be 315k with a ~4.5% reduction in taxes, then gradually stays around ~3-3.5% reduction for incomes up to 1M.
Taxable income
Tax (old brackets)
Tax (new brackets)
Delta ($)
$ 100,000.00
$ 16,307.50
$ 13,879.00
$ (2,428.50)
$ 110,000.00
$ 18,807.50
$ 16,079.00
$ (2,728.50)
$ 120,000.00
$ 21,307.50
$ 18,279.00
$ (3,028.50)
$ 130,000.00
$ 23,807.50
$ 20,479.00
$ (3,328.50)
$ 140,000.00
$ 26,307.50
$ 22,679.00
$ (3,628.50)
$ 150,000.00
$ 28,807.50
$ 24,879.00
$ (3,928.50)
$ 160,000.00
$ 31,423.00
$ 27,079.00
$ (4,344.00)
$ 170,000.00
$ 34,223.00
$ 29,379.00
$ (4,844.00)
$ 180,000.00
$ 37,023.00
$ 31,779.00
$ (5,244.00)
$ 190,000.00
$ 39,823.00
$ 34,179.00
$ (5,644.00)
$ 200,000.00
$ 42,623.00
$ 36,579.00
$ (6,044.00)
$ 210,000.00
$ 45,423.00
$ 38,979.00
$ (6,444.00)
$ 220,000.00
$ 48,223.00
$ 41,379.00
$ (6,844.00)
$ 230,000.00
$ 51,023.00
$ 43,779.00
$ (7,244.00)
$ 240,000.00
$ 53,925.50
$ 46,179.00
$ (7,746.50)
$ 250,000.00
$ 57,225.50
$ 48,579.00
$ (8,646.50)
$ 260,000.00
$ 60,525.50
$ 50,979.00
$ (9,546.50)
$ 270,000.00
$ 63,825.50
$ 53,379.00
$ (10,446.50)
$ 280,000.00
$ 67,125.50
$ 55,779.00
$ (11,346.50)
$ 290,000.00
$ 70,425.50
$ 58,179.00
$ (12,246.50)
$ 300,000.00
$ 73,725.50
$ 60,579.00
$ (13,146.50)
$ 310,000.00
$ 77,025.50
$ 62,979.00
$ (14,046.50)
$ 320,000.00
$ 80,325.50
$ 65,779.00
$ (14,546.50)
$ 330,000.00
$ 83,625.50
$ 68,979.00
$ (14,646.50)
$ 340,000.00
$ 86,925.50
$ 72,179.00
$ (14,746.50)
$ 350,000.00
$ 90,225.50
$ 75,379.00
$ (14,846.50)
$ 360,000.00
$ 93,525.50
$ 78,579.00
$ (14,946.50)
$ 370,000.00
$ 96,825.50
$ 81,779.00
$ (15,046.50)
$ 380,000.00
$ 100,125.50
$ 84,979.00
$ (15,146.50)
$ 390,000.00
$ 103,425.50
$ 88,179.00
$ (15,246.50)
$ 400,000.00
$ 106,725.50
$ 91,379.00
$ (15,346.50)
$ 410,000.00
$ 110,025.50
$ 94,879.00
$ (15,146.50)
$ 420,000.00
$ 113,325.50
$ 98,379.00
$ (14,946.50)
$ 430,000.00
$ 116,726.50
$ 101,879.00
$ (14,847.50)
$ 440,000.00
$ 120,226.50
$ 105,379.00
$ (14,847.50)
$ 450,000.00
$ 123,726.50
$ 108,879.00
$ (14,847.50)
$ 460,000.00
$ 127,226.50
$ 112,379.00
$ (14,847.50)
$ 470,000.00
$ 130,726.50
$ 115,879.00
$ (14,847.50)
$ 480,000.00
$ 134,226.50
$ 119,379.00
$ (14,847.50)
$ 490,000.00
$ 138,184.20
$ 122,879.00
$ (15,305.20)
$ 500,000.00
$ 142,144.20
$ 126,379.00
$ (15,765.20)
$ 510,000.00
$ 146,104.20
$ 129,879.00
$ (16,225.20)
$ 520,000.00
$ 150,064.20
$ 133,379.00
$ (16,685.20)
$ 530,000.00
$ 154,024.20
$ 136,879.00
$ (17,145.20)
$ 540,000.00
$ 157,984.20
$ 140,379.00
$ (17,605.20)
$ 550,000.00
$ 161,944.20
$ 143,879.00
$ (18,065.20)
$ 560,000.00
$ 165,904.20
$ 147,379.00
$ (18,525.20)
$ 570,000.00
$ 169,864.20
$ 150,879.00
$ (18,985.20)
$ 580,000.00
$ 173,824.20
$ 154,379.00
$ (19,445.20)
$ 590,000.00
$ 177,784.20
$ 157,879.00
$ (19,905.20)
$ 600,000.00
$ 181,744.20
$ 161,379.00
$ (20,365.20)
$ 610,000.00
$ 185,704.20
$ 165,079.00
$ (20,625.20)
$ 620,000.00
$ 189,664.20
$ 168,779.00
$ (20,885.20)
$ 630,000.00
$ 193,624.20
$ 172,479.00
$ (21,145.20)
$ 640,000.00
$ 197,584.20
$ 176,179.00
$ (21,405.20)
$ 650,000.00
$ 201,544.20
$ 179,879.00
$ (21,665.20)
$ 660,000.00
$ 205,504.20
$ 183,579.00
$ (21,925.20)
$ 670,000.00
$ 209,464.20
$ 187,279.00
$ (22,185.20)
$ 680,000.00
$ 213,424.20
$ 190,979.00
$ (22,445.20)
$ 690,000.00
$ 217,384.20
$ 194,679.00
$ (22,705.20)
$ 700,000.00
$ 221,344.20
$ 198,379.00
$ (22,965.20)
$ 710,000.00
$ 225,304.20
$ 202,079.00
$ (23,225.20)
$ 720,000.00
$ 229,264.20
$ 205,779.00
$ (23,485.20)
$ 730,000.00
$ 233,224.20
$ 209,479.00
$ (23,745.20)
$ 740,000.00
$ 237,184.20
$ 213,179.00
$ (24,005.20)
$ 750,000.00
$ 241,144.20
$ 216,879.00
$ (24,265.20)
$ 760,000.00
$ 245,104.20
$ 220,579.00
$ (24,525.20)
$ 770,000.00
$ 249,064.20
$ 224,279.00
$ (24,785.20)
$ 780,000.00
$ 253,024.20
$ 227,979.00
$ (25,045.20)
$ 790,000.00
$ 256,984.20
$ 231,679.00
$ (25,305.20)
$ 800,000.00
$ 260,944.20
$ 235,379.00
$ (25,565.20)
$ 810,000.00
$ 264,904.20
$ 239,079.00
$ (25,825.20)
$ 820,000.00
$ 268,864.20
$ 242,779.00
$ (26,085.20)
$ 830,000.00
$ 272,824.20
$ 246,479.00
$ (26,345.20)
$ 840,000.00
$ 276,784.20
$ 250,179.00
$ (26,605.20)
$ 850,000.00
$ 280,744.20
$ 253,879.00
$ (26,865.20)
$ 860,000.00
$ 284,704.20
$ 257,579.00
$ (27,125.20)
$ 870,000.00
$ 288,664.20
$ 261,279.00
$ (27,385.20)
$ 880,000.00
$ 292,624.20
$ 264,979.00
$ (27,645.20)
$ 890,000.00
$ 296,584.20
$ 268,679.00
$ (27,905.20)
$ 900,000.00
$ 300,544.20
$ 272,379.00
$ (28,165.20)
$ 910,000.00
$ 304,504.20
$ 276,079.00
$ (28,425.20)
$ 920,000.00
$ 308,464.20
$ 279,779.00
$ (28,685.20)
$ 930,000.00
$ 312,424.20
$ 283,479.00
$ (28,945.20)
$ 940,000.00
$ 316,384.20
$ 287,179.00
$ (29,205.20)
$ 950,000.00
$ 320,344.20
$ 290,879.00
$ (29,465.20)
$ 960,000.00
$ 324,304.20
$ 294,579.00
$ (29,725.20)
$ 970,000.00
$ 328,264.20
$ 298,279.00
$ (29,985.20)
$ 980,000.00
$ 332,224.20
$ 301,979.00
$ (30,245.20)
$ 990,000.00
$ 336,184.20
$ 305,679.00
$ (30,505.20)
$ 1,000,000.00
$ 340,144.20
$ 309,379.00
$ (30,765.20)
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