Tax Returns?

[sle]

I'd like to run a quick informal survey about the impact of the changed SALT deductions on our consumption ability. Anecdotally, I hear that a lot of people have much lower tax returns or have money due which I think is gonna impact consumption.

PS. for clarification, the return in the questionnaire is the change in the amount sent or received from both state and the Feds. So if you have money due and owe more than last year, that's "lower"

PPS. Can we avoid political discussions here, please?

 

[curiousGeorge8]

Define SALT?

 

[rallymode]

Out of curiosity, why does the change in the amount of refund or tax due matter when you dont know the change in taxable income?

Would a 2-3% increase in tax liabilities affect most traders consumption ability? It certainly doesn't change mine, just like a similar tax cut wouldn't induce me to somehow spend more.

 

[destriero]

State and local taxes.

 

[destriero]

Out of curiosity, why does the change in the amount of refund or tax due matter when you dont know the change in taxable income?

Would a 2-3% increase in tax liabilities affect most traders consumption ability? It certainly doesn't change mine, just like a similar tax cut wouldn't induce me to somehow spend more.

Yeah, most ppl here are probably not wage earners.

As far as wage earners go... something like 65% are paying more (flipping from refund to owing) which will impact GDP negatively this year.

 

[sle]

Define SALT?

How about "in 2017, you have claimed a deduction to your federal taxes due to paid state and local tax"?

Out of curiosity, why does the change in the amount of refund or tax due matter when you dont know the change in taxable income?

A lot of wage earners use the lump tax return payment as a windfall. Historically, that had a tendency of lifting up consumption in Q2. There are little anecdotal signs that it's not happening this year, I am trying to confirm that sense.

Yeah, most ppl here are probably not wage earners.

You think? I'd recon most people here are recreational traders and have a steady job otherwise, no?

 

[destriero]

My wife's take home increased by $8K isolated to tax cuts. My sister's take home was flat YoY; she did her taxes last weekend.

 

[sle]

My wife's take home increased by $8K isolated to tax cuts. My sister's take home was flat YoY; she did her taxes last weekend.

Ugh. My take home is down 30k

 

[smallfil]

Your question is vague. Are you talking about getting a smaller refund compared to last year? Or your gross income where you earned more in 2018 compared to 2017? The only figure that matters is the tax rate as a percentage of your income. Turbotax has a feature where the instruction sheet has a percentage of your income calculation. Easy to compare tax years 2017 and 2018! You could have earned $100,000 in 2018 and paid say 10% this year on that income or $10,000 and you could have earned $50,000 in 2017 but, paid 15% on that income or $7,500. Fools who only look at the refund amounts will say they paid more taxes? Look at the percentage of your income you paid in taxes, that is the only thing that matters! In this example, you did better in 2018 despite, paying more taxes because you only paid 10% of your income this year compared to paying 15% of your income last year!

 

[ETJ]

Live in a state (Illinois) where Salt had a significant impact, but 2018 bonuses were down big from 2017. Typical property tax for our shop was about 30K. Property tax is public in Illinois - but, the Salt cap hurt - the markets hurt more. 2018 bonuses were down over 80% from 2017 for some of our crew.