Tax season

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FYI
[Your tax return might be smaller this year]('https://abc7ny.com/finance/your-tax-refund-may-be-smaller-this-year;-heres-why/12727724/')


I'm definitely going to owe more, interest rates on time deposits are way up and there are no withholdings on interest earned.

My tax return has been smaller for the past couple of years since someone changed them a few years back to benefit millionaires and billionaires and screw lower middle class peeps like me

HE DID THAT!!!!

i
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My tax return has been smaller for the past couple of years since someone changed them a few years back to benefit millionaires and billionaires and screw lower middle class peeps like me

t was designed that way to keep up wit the current high inflation numbers… cellfish…

Inflation is probably screwing you better than your taxes.

no one passed a bill to increase inflation

true , it just comes naturally… cellie…

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true , it just comes naturally… cellie…

exactly,,,world wide to boot

$31, Trillion, that’s natural too boot ? too…

[MEDIA=youtube]JVtc3fnbJ-s[/MEDIA]

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My tax return has been smaller for the past couple of years since someone changed them a few years back to benefit millionaires and billionaires and screw lower middle class peeps like me

How so?

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FYI
[Your tax return might be smaller this year]('https://abc7ny.com/finance/your-tax-refund-may-be-smaller-this-year;-heres-why/12727724/')

Here's why: The amounts might be very different than they were last year. Several popular tax breaks have changed since you filed your 2021 return. And your financial circumstance may have altered too, if you sold any assets or were laid off.

[SIZE=4]But for tax years 2020 and 2021, filers were allowed to take what's called an above-the-line deduction for charitable contributions up to $300 ($600 if married filing jointly) in addition to the standard deduction.

Child and dependent care credit: The tax credit that working parents use to help pay for child care or that filers claim to pay for the care of an adult dependent is also notably lower for tax year 2022. [/SIZE]

Interesting when you read the article and put some thought into the subject.

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But for tax years 2020 and 2021, filers were allowed to take what's called an above-the-line deduction for charitable contributions up to $300 ($600 if married filing jointly) in addition to the standard deduction.

That's still the case, at least according to my accountant...

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That's still the case, at least according to my accountant...

[URL unfurl="true"]https://www.kiplinger.com/taxes/tax-deductions/601993/charitable-tax-deductions-an-additional-reward-for-the-gift-of-giving#:~:text=You%20Must%20Itemize%20to%20Claim%20a%20Charitable%20Tax%20Deduction&text=However%2C%20the%20%24300%20deduction%20wasn,to%20charity%20is%20to%20itemize.[/URL]

[HEADING=1]QCDs Can Provide More Tax Benefits for Seniors[/HEADING]
If you're at least 70½ years old, you can transfer up to $100,000 directly from a traditional IRA to charity through a [qualified charitable distribution (QCD)]('https://www.kiplinger.com/personal-finance/charity/605265/tax-savvy-charitable-giving-with-qcds-can-benefit-both-giver-and'). Charitable donations made by qualified seniors via a QCD aren't deductible, but you can still save on taxes since QCDs aren't included in taxable income. So, you get a tax break whether or not you itemize.

There's an additional perk for seniors using QCDs to donate to charity – QCD donations also count toward your [required minimum distribution]('https://www.kiplinger.com/retirement/retirement-plans/required-minimum-distributions-rmds'). And, again, they count as an RMD *without adding to your adjusted gross income*.


Very, very powerful tool for those taking RMD's and locked out of the itemized deductions due to proper planning and have deductions smaller than the standard.

Would hope that you have been given this advice............................

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How so?

What's the ?
All things being equal as far as income and my salary I consistently got a tax return of so much per year.
Sometime during that administration the tax codes were changed and my return went down noticeably

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What's the ?
All things being equal as far as income and my salary I consistently got a tax return of so much per year.
Sometime during that administration the tax codes were changed and my return went down noticeably

Take a close look at the effective tax rate for a year before to a year after the tax code change. Take into account whether your income went up or down too. The reason I suggest that is refund / pay at 4/15 is merely a reconciliation each year. They changed the withholding amounts in Feb 2018 for 2018 and there was a bunch of confusion regarding which table etc. And lots of people said zippo as they saw their net pay go up each payroll. The problem - the withholding table reduced the federal withholding each period. So guess what? Refund reduced or even payment due. Overall tax did not change (actually went down) but less was withheld during the year. So 4/15 the battle cry was "Oh my GOD, my refund went down so taxes must have gone up."

The idea was to add more dollars into folks hands immediately. Big mistake for those who spent the extra money each pay period, and ALSO counted on the refund at 4/15 to fund something in their world.

Just a timing issue and poor money management.

That's why I added the ? to my comment.

I attached an older article which sheds a little light on the subject.

[IRS Releases New 2018 Withholding Tables To Reflect Tax Law Changes]('https://www.forbes.com/sites/kellyphillipserb/2018/01/11/irs-releases-new-2018-withholding-tables-to-reflect-tax-law-changes/?sh=728347b63767')

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[HEADING=1]QCDs Can Provide More Tax Benefits for Seniors[/HEADING]
If you're at least 70½ years old, you can transfer up to $100,000 directly from a traditional IRA to charity through a [qualified charitable distribution (QCD)]('https://www.kiplinger.com/personal-finance/charity/605265/tax-savvy-charitable-giving-with-qcds-can-benefit-both-giver-and'). Charitable donations made by qualified seniors via a QCD aren't deductible, but you can still save on taxes since QCDs aren't included in taxable income. So, you get a tax break whether or not you itemize.

There's an additional perk for seniors using QCDs to donate to charity – QCD donations also count toward your [required minimum distribution]('https://www.kiplinger.com/retirement/retirement-plans/required-minimum-distributions-rmds'). And, again, they count as an RMD *without adding to your adjusted gross income*.

Very, very powerful tool for those taking RMD's and locked out of the itemized deductions due to proper planning and have deductions smaller than the standard.

Would hope that you have been given this advice............................

I'm missing something. A $100,000 donation costs $100,000, no? How is that helping more than $100,000? If I withdraw the money, I get to spend it. If I donate it, I don't.

What matters is the total amount of tax you pay in a year. I never focus on my tax refund. My goal is a zero refund, or better yet, a tax bill just under the penalty limit. I don't need the Feds to hold my money for me at zero interest.
And if corporations and the wealthy paid their fair share, we wouldn't have to foot so much of the tax bill.