Find out via this calculator!
http://taxplancalculator.com/
http://taxplancalculator.com/
Will you win or lose under new tax plan?
- Thread starter Never_Enough
- Start date
Personally winning.
I have actually ran through almost all my tax clients and have only found one that will "lose" and by lose it their overall tax goes up by a couple thousand on the 200k in taxes they pay. Percentage wise its very small.
I have actually ran through almost all my tax clients and have only found one that will "lose" and by lose it their overall tax goes up by a couple thousand on the 200k in taxes they pay. Percentage wise its very small.
Bigly +1
Seems kind of like a gimmick
Doesn't seem odd to you? I take it with a grain of salt, Maxim Lott is a producer for one of John Stossel's shows. Interesting info from the details section of the page that helps keep things in perspective. Not saying it is wrong just that it's pretty basic.
"What does the calculator consider?
The calculator takes into account all of the following:
-- Personal exemption deduction
-- State income tax, local income tax (estimated), property tax deductions
-- The House bill preservation of $10k in property tax deductions
-- The House bill deduction of $300 for joint filers
-- Standard deduction and whether you should switch
-- All tax rates, including the "claw-back" tax on millionaires in the House Bill
-- Child credits
What does this calculator NOT include?
This calculator includes all the basic tax changes that would impact nearly everyone.
However, it cannot estimate every change (the house bill alone is 450 pages.) To get everything, one would have to rebuild TurboTax for three different tax systems.
Here are things the calculator does NOT consider; if they apply to you, you may want to factor them in on your own:
-- House bill's elimination of medical expenses of 10% of income (not in Senate bill)
-- House bill's elimination of student loan deductibility, already capped at $2,500 (not in Senate bill) RECOMMENDATION: add the tuition waivers to your income and re-run the calculator to see how that changes the House Plan result.
-- House expansion of the "American Opportunity Tax Credit" for tuition -- House bill's elimination of tax deductibility for tuition waivers (not in Senate bill)
-- House bill's elimination of mortgage interest deductibility over $500,000 -- existing mortgages are grandfathered in (not in Senate bill)
-- Senate bill's tweaks to 401k tax deferment for high-income people and other special cases (not in House bill)
-- Elimination of the Alternative Minimum Tax (both plans)
-- Estate/Death tax repeal -- House plan's $300 deduction for non-child non-spouse dependents
-- The Earned Income Tax Credit (EITC.) If you are eligible for this, your total bill will be lower than shown, but the reform bills do not change the EITC.
-- The House Bill is 450 pages long, and there are undoubtedly other provisions not listed here.
How State and Local tax deductions are estimated
State taxes: The calculator assumes your current-law federal deductions also apply to your state taxes (this is not necessarily the case, but will likely be close.) It then runs the taxable income through the actual state tax brackets to find how much you owe.
In states without state income tax, the calculator estimates your sales taxes (which are deductible if you do not deduct state income tax) by finding the state's total sales tax revenue and dividing the state's household income by that to get the average percentage paid each year. (For example, if Texas' household income is $50k and the state raises 2k per household in sales taxes, that works out to an estimated 4% tax rate.)
New Hampshire is the only state without either income or sales tax. Their revenue comes from property tax and excise taxes that are not likely to be deducted.
Local income taxes are estimated by taking the proportion of local taxes raised in a state and assuming that you pay a similar share. (For example, if Pennsylvanians on average pay 1/3rd as much in local taxes as state taxes, this calculator assumes that you pay 1/3rd as much in local taxes as state taxes.
New York City local taxes are so high that this calculator has a separate option for it. The program handles it as a state -- both state and city taxes are grouped together under "state"
Property taxes are entered manually, due to the high variance in home values and payments.
Don't the tax cuts phase out or "sunset"?
The Senate plan makes the individual income tax rate cuts temporary; they would rise again in 2025. This was probably done as a budget gimmick to make the long-term cost of the bill appear lower, but done under the assumption that they will be extended past 2025 because nobody wants to be seen as raising taxes on the middle class. The Bush tax cuts had a similar provision, and they were later made permanent except for the rate on those making over $450,000/year, whose rates were reverted.
What about the corporate tax cut?
This calculator is for tax rates on individuals and households only. The corporate tax may increase economic growth, but that is beyond the scope of this calculator.
Privacy
This calculator does not store any information entered.
I pay a different amount in federal tax than the calculator shows
The calculator lists under details exactly how it makes its calculations. If you itemize, make sure you selected "yes" for that on the form. It is also possible that you have special tax circumstances that reduce your taxable gross income; if so, enter an adjusted income into the form based on that. Feel free to contact me with questions."
Doesn't seem odd to you? I take it with a grain of salt, Maxim Lott is a producer for one of John Stossel's shows. Interesting info from the details section of the page that helps keep things in perspective. Not saying it is wrong just that it's pretty basic.
"What does the calculator consider?
The calculator takes into account all of the following:
-- Personal exemption deduction
-- State income tax, local income tax (estimated), property tax deductions
-- The House bill preservation of $10k in property tax deductions
-- The House bill deduction of $300 for joint filers
-- Standard deduction and whether you should switch
-- All tax rates, including the "claw-back" tax on millionaires in the House Bill
-- Child credits
What does this calculator NOT include?
This calculator includes all the basic tax changes that would impact nearly everyone.
However, it cannot estimate every change (the house bill alone is 450 pages.) To get everything, one would have to rebuild TurboTax for three different tax systems.
Here are things the calculator does NOT consider; if they apply to you, you may want to factor them in on your own:
-- House bill's elimination of medical expenses of 10% of income (not in Senate bill)
-- House bill's elimination of student loan deductibility, already capped at $2,500 (not in Senate bill) RECOMMENDATION: add the tuition waivers to your income and re-run the calculator to see how that changes the House Plan result.
-- House expansion of the "American Opportunity Tax Credit" for tuition -- House bill's elimination of tax deductibility for tuition waivers (not in Senate bill)
-- House bill's elimination of mortgage interest deductibility over $500,000 -- existing mortgages are grandfathered in (not in Senate bill)
-- Senate bill's tweaks to 401k tax deferment for high-income people and other special cases (not in House bill)
-- Elimination of the Alternative Minimum Tax (both plans)
-- Estate/Death tax repeal -- House plan's $300 deduction for non-child non-spouse dependents
-- The Earned Income Tax Credit (EITC.) If you are eligible for this, your total bill will be lower than shown, but the reform bills do not change the EITC.
-- The House Bill is 450 pages long, and there are undoubtedly other provisions not listed here.
How State and Local tax deductions are estimated
State taxes: The calculator assumes your current-law federal deductions also apply to your state taxes (this is not necessarily the case, but will likely be close.) It then runs the taxable income through the actual state tax brackets to find how much you owe.
In states without state income tax, the calculator estimates your sales taxes (which are deductible if you do not deduct state income tax) by finding the state's total sales tax revenue and dividing the state's household income by that to get the average percentage paid each year. (For example, if Texas' household income is $50k and the state raises 2k per household in sales taxes, that works out to an estimated 4% tax rate.)
New Hampshire is the only state without either income or sales tax. Their revenue comes from property tax and excise taxes that are not likely to be deducted.
Local income taxes are estimated by taking the proportion of local taxes raised in a state and assuming that you pay a similar share. (For example, if Pennsylvanians on average pay 1/3rd as much in local taxes as state taxes, this calculator assumes that you pay 1/3rd as much in local taxes as state taxes.
New York City local taxes are so high that this calculator has a separate option for it. The program handles it as a state -- both state and city taxes are grouped together under "state"
Property taxes are entered manually, due to the high variance in home values and payments.
Don't the tax cuts phase out or "sunset"?
The Senate plan makes the individual income tax rate cuts temporary; they would rise again in 2025. This was probably done as a budget gimmick to make the long-term cost of the bill appear lower, but done under the assumption that they will be extended past 2025 because nobody wants to be seen as raising taxes on the middle class. The Bush tax cuts had a similar provision, and they were later made permanent except for the rate on those making over $450,000/year, whose rates were reverted.
What about the corporate tax cut?
This calculator is for tax rates on individuals and households only. The corporate tax may increase economic growth, but that is beyond the scope of this calculator.
Privacy
This calculator does not store any information entered.
I pay a different amount in federal tax than the calculator shows
The calculator lists under details exactly how it makes its calculations. If you itemize, make sure you selected "yes" for that on the form. It is also possible that you have special tax circumstances that reduce your taxable gross income; if so, enter an adjusted income into the form based on that. Feel free to contact me with questions."
Last edited:
Would that be for 2017?
Sent from my XT1254 using Tapatalk
Sent from my XT1254 using Tapatalk
I didn't actually use that website to look at each client. We look at each one individually and made adjustments to plug in the taxable income to calc the tax based on the new rates in excel. Not an exact science but good enough for now to tell them if its good or bad for them.
As for everyone winning not really as my clients are almost all upper middle class earners. There will be losers somewhere, I just have not found them yet.
If we cared about the middle class then Obama Care would never have seen the light of day.
It was a huge theft of middle class money to pay for the poor. Charity should not be the government's role. People need motivation to escape poverty and living comfortably is not how you do it.
Sent from my XT1650 using the svtperformance.com mobile app
It was a huge theft of middle class money to pay for the poor. Charity should not be the government's role. People need motivation to escape poverty and living comfortably is not how you do it.
Sent from my XT1650 using the svtperformance.com mobile app
Nice, that's good to know as it hold more weight than the website. I am just skeptical anytime someone with obvious leanings comes up with something like this. It's very easy to include/exclude certain provisions to get a result you want people to believe.
Would cut mine big time.
There will be a sweet spot based on income and number of kids that will make people pay more. Also high state income tax states with high cost of living will be hit, CA and NY most likely. High interest on home loans will cause them to itemize but they wont get the high state income tax deduction.
Since they rolled the personal exemptions in with the standard/itemized deductions it could cost parents that have multiple kids extra depending on their income, the higher the income the more kids they have to have before it starts to hurt. It looks like most income levels it starts to hurt when you have 5+ kids. The child tax credit goes up to cover the majority of it but when your excluding income in brackets higher than the increase of the child credit you become a loser.
I did compare my calc vs the website on me personally. My calc shows a winning on 6xx-8xx the website shows 1,056-1,230. I think the website is inflated, and flawed as I think most people will put in their salary and not their taxable wages which will flaw it from the start.
Charity is incorrect terminology as it was a handout at the expense of the middle class.
Let me explain the reality of Obamacare in terms of the recent events from the left. The debacle is like that fat Jew producer forcing himself on a woman yet saying she consented. Then to "butter" her up he offers she a wet nap and cab fare. All is great until she gets a bill for the wet nap and cab fare.
I'm skeptical of these. Because the depth of tax code and math required can not be accomplished by a simple scripted website. Nor does the math for the basic calculator for the current tax systems matching up to what is current anyway
From my understand, if you make enough to actually pay taxes then you'll get a break.
Sid kind of painted the simple picture. I am hopeful that I will see a good enough tax break to make me believe it is a breakthrough tax reform for the middle class worth shouting about.
Just played with it and it seems easier to lose if you itemize deductions.
I am ok with that. Sorry, blue state dwellers... Your legislators have no problem making poor decisions that affect the rest of us, so I don't really empathize in this scenario.
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