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Old     (Laker1234)      Join Date: Mar 2010       12-21-2017, 9:02 AM Reply   
No one will start, so I'll step up. I have concerns but I'm glad to see the ACA mandate go away. https://www.nbcnews.com/politics/con...-trump-n831161
Old     (ord27)      Join Date: Oct 2005       12-21-2017, 11:22 AM Reply   
my accountant sent out an email this morning

suggests to prepay tax prep because accounting fees will not be deductible in 2018
also says to wait to buy a company car (to late) because write off is better next year

I'm curious to see how the rest of it pans out

It needed done, but like Obamacare, I bet it could have been done better
Old     (psudy)      Join Date: Dec 2003       12-21-2017, 11:24 AM Reply   
Tax Cuts and Jobs Act of 2017
The Tax Cuts and Jobs Act is a United States Congressional bill to amend the Internal Revenue Code of 1986, effectively altering the rate of taxation for individuals and businesses. Major components of the Act include:
• Reducing tax rates for individuals and businesses;
• Increasing the standard deduction and family tax credits;
• Limiting the mortgage interest deduction;
• Limiting the Alternative Minimum Tax for individuals and eliminating it for corporations;
• Reducing the number of estates impacted by the estate tax; and
• Reducing the penalty for the individual mandate of the Affordable Care Act (ACA).
There are items in the Act that will affect employers and employees alike. As an employee, you may be impacted by changes your employer will have to make to comply with the new legislation. In addition, as an individual taxpayer, it is important to understand the upcoming legislative changes that will affect you directly.
WITHHOLDING TABLES / TAX RATES
WHAT YOU NEED TO KNOW AS AN INDIVIDUAL TAXPAYER
Tax rates will reduce for all tax brackets for both married and single taxpayers with the highest tax bracket dropping to 37 percent. This also sets the Supplemental Tax Rate to 22 percent for up to $1 million and 37 percent for more than $1 million for bonus payments made after January 1, 2018. The number of income tax brackets remain at seven, but the income ranges in several brackets have been updated. Below is a chart of how the tax brackets will change:
www.paylocity.com | +1.888.873.8205 | Copyright 2017 Paylocity. All Rights Reserved.
SINGLE TAXPAYERS
MARRIED FILING JOINTLY TAXPAYERS
2017 Rates
2018 Rates
2017 Rates
2018 Rates
Rate
Income Bracket
Rate
Income Bracket
Rate
Income Bracket
Rate
Income Bracket
10%
$0 - $9,525
10%
$0 - $9,525
10%
$0 - $19,050
10%
$0 - $19,050
15%
$9,525 - $38,700
12%
$9,525 - $38,700
15%
$19,050 - $77,400
12%
$19,050 - $77,400
25%
$38,700 - $93,700
22%
$38,700 - $82,500
25%
$77,400 - $156,150
22%
$77,400 - $165,000
28%
$93,700 - $195,450
24%
$82,500 - $157,500
28%
$156,150 – $237,950
24%
$165,000 - $315,000
33%
$195,450 - $424,950
32%
$157,500 - $200,000
33%
$237,950 - $424,950
32%
$315,000 - $400,000
35%
$424,950 - $426,700
35%
$200,000 - $500,000
35%
$424,950 - $480,050
35%
$400,000 - $600,000
39.6%
$426,700+
37%
$500,000+
39.6%
$480,050+
37%
$600,000+
WHAT YOU NEED TO KNOW AS AN EMPLOYEE
The IRS has indicated new withholding tables will be published as early as possible sometime in January. The reduced supplemental rate will need to be applied to any bonuses paid after January 1, 2018 at 22 percent or 37 percent based on amount. Paylocity will update the supplemental tax rates prior to 1/1/2018 so bonuses paid with a 2018 check date will be taxed at the updated supplemental withholding rate.
The IRS has indicated the new tables will have an implementation deadline of sometime in February. Details on these changes will be communicated as they are rolled out. You can expect your federal withholding amounts to change as the new tables are applied. Depending on when the tables are published, you may not see the changes on your first 2018 paycheck.
EXEMPTIONS
WHAT YOU NEED TO KNOW AS AN INDIVIDUAL TAXPAYER
The Act eliminates all personal exemptions. The withholding rules will be modified to reflect the fact that individuals can no longer claim personal exemptions. The Act increases the standard deduction for taxpayers to:
• $24,000 for married taxpayers filing jointly,
• $18,000 for heads of households, and
• $12,000 for all other individuals.
The Act does not change the additional standard deduction for elderly and blind taxpayers.
www.paylocity.com | +1.888.873.8205 | Copyright 2017 Paylocity. All Rights Reserved.
WHAT YOU NEED TO KNOW AS AN EMPLOYEE
Since personal exemptions were eliminated, this requires changes to Federal Form W-4, Employee's Withholding Allowance Certificate. The IRS has stated that a new form may not be released until March 2018. Until the new form is available, employers must use the prior versions. Any exemptions claimed on Form W-4s completed before the new form is released will be null. The removal of personal exemptions will happen concurrently with the release of the new withholding tables. Paylocity will update the new version of the Form W-4 as soon as the IRS publishes it.
OTHER AREAS OF INTEREST FOR INDIVIDUAL TAXPAYERS
WAGE ADVANCES AND REPAYMENTS THAT CROSS TAX YEARS
If the repayment of a wage advance or overpayment crosses tax years and the amount is less than $3,000, employees are no longer allowed to itemize their deductions to claim a federal income tax credit on the repayment.
EMPLOYEE UNREIMBURSED BUSINESS EXPENSES
Employees are no longer able to claim an itemized deduction for business expenses incurred on behalf of the employer but not reimbursed by the employer.
MOVING EXPENSE REIMBURSEMENTS
Qualified moving expenses must now be included in gross income and wages, except in the case of an armed forces member on active duty who moves pursuant to a military order.
STATE AND LOCAL TAX DEDUCTION
The deduction for state and local property, sales, or income taxes is now limited to $10,000.
BICYCLE COMMUTING REIMBURSEMENTS
Employers may no longer exclude up to $20 per month in reimbursements to an employee for bicycle commuting costs.
EMPLOYEE ACHIEVEMENT AWARDS
The value of all non-cash awards given to an employee for length of service or safety achievement under a qualified plan are excluded from the employee's wages and are exempt from Federal Income Tax Withholding up to $1,600 per year. This exclusion does not apply to cash, gift cards, and other non-tangible personal property to be included in the award and must be appropriately taxed if included.
www.paylocity.com | +1.888.873.8205 | Copyright 2017 Paylocity. All Rights Reserved.
RETIREMENT PLAN LOAN OFFSET
Employees whose 401K plan terminates or employees who separate from employment while they have plan loans outstanding will have until the due date for filing their federal income tax return for that year to contribute the loan balance to an IRA to avoid the loan from being taxed as a distribution.
CHILD TAX CREDIT
The Act increased the amount of the child tax credit to $2,000 per qualifying child. The maximum refundable amount of the credit is $1,400. The Act also created a new nonrefundable $500 credit for qualifying dependents who are not qualifying children.
MORTGAGE INTEREST DEDUCTION
Mortgage interest deduction for newly purchased homes (and second homes) is lowered from total loan balances of $1 million under current law to $750,000. Interest from home equity loans (aka second mortgages) is no longer deductible.
ESTATE TAX
Increases the threshold for the estate tax from $5.5 million to $11.2 million.
ALTERNATIVE MINIMUM TAX
For tax years beginning after Dec. 31, 2017, the alternative minimum tax exemption amount increases to $109,400 for married taxpayers filing a joint return and $70,300 for most other taxpayers.
EDUCATION DEDUCTIONS AND CREDITS
The Act modifies Sec. 529 plans to allow distribution of no more than $10,000 in expenses for tuition incurred during the tax year at an elementary or secondary school. This limitation applies on a per-student basis, rather than a per-account basis. Otherwise, there are no changes to major education deductions and credits or to teacher deduction for unreimbursed classroom expenses.
AFFORDABLE CARE ACT
Effective after January 1, 2019, the Act reduces the individual mandate penalty to zero under Sec. 5000A, imposed on taxpayers who do not obtain insurance that provides at least minimum essential coverage. The individual mandate will still be in effect for all of 2018.
A FINAL NOTE
Many provisions of this Act are set to expire on December 31, 2025. If no legislation is passed to extend the tax changes beyond that date, tax rates and exemption rules will revert to current law.
Old     (95sn)      Join Date: Sep 2005       12-21-2017, 1:03 PM Reply   
Concerns?? Why?? You don't think a tax cut for the top 1% receiving 80% of the benefit is a good idea? What could possibly go wrong?
If your employer pays for your insurance...most wont care. For everyone else premiums will go up probably as much or more than your (my) tax break Christmas gift. Eliminating the mandate will effectively "repeal" Obamacare...with no replace, classic.
Trickle down never really works. It hasn't in the past (Reagan and Bush 1 both tried it) and I have no reason and have seen zero evidence that it will benefit anyone other than the wealthy and corps. If you are not earning $750+ annually or have over $10M net worth, sorry. Its still a crap deal for the country, but you will be rewarded. That 5% who benefit most already own 80% of the wealth in the USA. http://www2.ucsc.edu/whorulesamerica/power/wealth.html
I noticed at the end in negotiations they added a windfall tax break for real estate developers, the trump helpthyself tax break. No worries, liar in chief already said this tax plan will be "very bad" for him. Believe it?
Also I read that this will be a big bump for banks (checked and most all are up today, buy the banks ETF!!) Wells Fargo who just finished ****ing over millions of clients and got a $185 M penalty will get the biggest bump. Read up on Wells and how they have treated their clients to unknown new accounts, credit cards and forced their high insurance $ with out cause. Nice of trump to take care of them while destroying the CFPB. Lots of dirty stuff going on in the new and improved trump swamp. But hey, Merry Christmas.

Edit...Not to mention an estimated $1.5 Trillion addition to the debt. Maybe we can just "go trump" on the debt and file BK.

Last edited by 95sn; 12-21-2017 at 1:06 PM.
Old     (pesos)      Join Date: Oct 2001       12-21-2017, 1:50 PM Reply   
It's disgusting. I'll be one of the few "benefitting" personally from the changes which will be great consolation as I watch everyone around me getting screwed.
Old     (john)      Join Date: Apr 2002       12-21-2017, 2:53 PM Reply   
ALTERNATIVE MINIMUM TAX
For tax years beginning after Dec. 31, 2017, the alternative minimum tax exemption amount increases to $109,400 for married taxpayers filing a joint return and $70,300 for most other taxpayers.


Was really looking forward to the AMT being eliminated, not just raising the exemptions a bit. (from $84,500 to $109,400 for joint filers)
Old     (plhorn)      Join Date: Dec 2005       12-21-2017, 3:25 PM Reply   
Old     (shawndoggy)      Join Date: Nov 2009       12-21-2017, 4:06 PM Reply   
Quote:
Originally Posted by pesos View Post
It's disgusting. I'll be one of the few "benefitting" personally from the changes which will be great consolation as I watch everyone around me getting screwed.
Same. Not to mention we'll all pay for this in the end. Economy is doing fine right now. We're going to have a huge injection of overheated growth... for what?

Sorta like when you are two beers in on NYE. You can keep sipping and keep the buzz going all night long, or you can succumb to those fireball shots.
Old     (wakeslash)      Join Date: Sep 2017       12-21-2017, 7:56 PM Reply   
HAHA
Old     (95sn)      Join Date: Sep 2005       12-22-2017, 11:39 AM Reply   
^^^the tax plan hits liberals and the simple minded equally.

Quote:
Same. Not to mention we'll all pay for this in the end. Economy is doing fine right now. We're going to have a huge injection of overheated growth... for what?

Sorta like when you are two beers in on NYE. You can keep sipping and keep the buzz going all night long, or you can succumb to those fireball shots.

Great post, and who can say no to fireball shots, its on.
My guess is trying to supercharge a robust economy will lead to inflation.
And yeah, I wonder who is going to pay for this in 5,10,20 years. It will be democrats who will one day return to office and raise taxes because there needs to be an adult in the room.

Is it just me or are Repubs in a rush to...
curb immigration...when it is at decade lows.
Boost employment when unemployment is at lows
Tax cut to the rich and corps when they are as cashed up as ever
basically "fix" **** that aint broken.

How can they possibly get the tax plan up and running in 10 days? I don't think they actually have a PoA. How are employers going to activate this into their payrolls? Can I pay next years property taxes now? I can see a whole lotta issues arising quickly. This should be an interesting roll out.

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