On this @$$% tax bill, how do the quintiles convert to dollars?

[Frustratedlady]

For instance, if you are in the 3rd quintile, what does that mean in dollars? Otherwise, it doesn't mean anything to me.

I know...a dumb question.

[LuckyCharms]

1. Are you referring to the new brackets? n/t

[Frustratedlady]

2. Yes, I can't figure out where I would be. eom

[LuckyCharms]

4. To get a rough idea...

Take your total taxable income.

Then look at your return last year...depending on your filing status, you either filed with one or two personal exemptions (you would have two if you filed jointly). There is a dollar amount assigned each year for each exemption, and that amount, multiplied by the number of PERSONAL (not exemptions for dependents) is normally subtracted from your total income. In 2019, when you file your taxes for 2018, you can no longer subtract this from your income.

Then, assuming you use the standard deduction, rather than itemizing, take your normal standard deduction, and then double it. This is the amount you can deduct from your total income to arrive at your taxable income.

If you itemize your deductions, you can no longer itemize SALT (state and local taxes), which for most people, will prevent them from itemizing, and force them to use the standard deduction.

This is my understanding of all of this...if I am wrong, someone will correct me.

[Frustratedlady]

5. Thanks. That will be my project for tonight.

I'll try to follow last year's return and see where I stand. I'm not looking for any good to come of it, though. If it does, I'll be pleasantly surprised.

[LuckyCharms]

6. Good luck. It won't take you long to ballpark it...

What kills me is that they are touting that the standard deduction will be doubled, but they downplay the fact that much of that benefit is negated because the personal exemption is no longer allowed.

[LuckyCharms]

8. PS...remember that you can still subtract the exemption amounts for dependents,

just not the personal exemption for yourself (and significant other, if filing jointly).

[Frustratedlady]

9. I don't have any dependents...

just me. That's probably going to hurt.

[LuckyCharms]

15. Do you file single or joint? n/t

[LuckyCharms]

11. Quick formula:

Total taxable income

MINUS: Amount for non-personal exemptions

MINUS: Old standard deduction x 2, OR, if you itemize,

MINUS: Typical itemized deductions less state and local taxes minus interest on home equity loans which will no longer be deductible (forgot to mention this above).

The result is the taxable income to use when looking at the tax brackets.

[MissB]

10. Arent you still able to itemize SALT but only to $10k?

In a high tax state (which I am in - Oregon) it won’t matter anyway because the 10k max plus the allowed mortgage interest may not be more than the $24k standard deduction anyway.

I looked at the ballpark for me, and it looks like we will be doing the standard deduction for the first time ever in our marriage. We were probably close to that point anyway with the kids in college and our mortgage paid down.

[LuckyCharms]

12. Yes, many more people will not be able to itemize now. n/t

[LuckyCharms]

14. ...you may be correct...I'm not sure. n/t

[Ilsa]

13. I think they capped SALT at $10,000 or so.

That means people paying sales tax for a vehicle won't be able to use anything that throws them over $10,000.

Someone correct me if the limit is different.

[Lurks Often]

3. CNN has the third bracket as $40K to $75K

Link: http://www.cnn.com/2017/12/13/politics/calculate-americans-taxes-senate-reform-bill/index.html

Don't know if it is 100% accurate or not, but it's probably close.

I'm probably getting another $100 to $130 a month if CNN's math is right.

Using my current paycheck, in 2027, my pay will go down $10 a month.

[Frustratedlady]

7. Thanks for the link. I have to leave town for a bit, but will work it out tonight.

I don't have any faith in their manipulations since I'm not wealthy. I just pray they don't take more than they have in the past.

I'm hoping that after 2018, the Democrats will have control and can FIX this scam.

Optimism is one of my faults, which is useless with this administration.